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True cost of an employee
calculator (Canada)

See what a salary really costs once CPP, CPP2 and EI are added, with Quebec handled properly.

Your numbers

Fully loaded annual cost
 
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What is the maximum employer CPP contribution for 2026?

$4,230.45 at 5.95% on pensionable earnings between $3,500 and $74,600, plus up to $416 of CPP2 at 4% on earnings between $74,600 and $85,000. That is $4,646.45 in total.

How we calculated this

We add the employer's statutory contributions for calendar 2026 to the salary. Outside Quebec that is Canada Pension Plan (CPP) at 5.95% of pensionable earnings between the $3,500 basic exemption and $74,600, CPP2 at 4% on earnings between $74,600 and $85,000, and Employment Insurance (EI) at 1.4 times the employee premium of 1.63% on insurable earnings up to $68,900. In Quebec the employee is in the Quebec Pension Plan (QPP) at 6.30%, EI runs at 1.4 times the lower Quebec rate of 1.30%, and the Quebec Parental Insurance Plan (QPIP) adds 0.602% on earnings up to $103,000. The working, the assumptions and the sources are below.

New to the term? Read the plain-English definition of CPP and EI contributions in the HR Glossary.

Your working
Assumptions
  • Uses calendar 2026 rates and maximums, which reset on 1 January: employer CPP maximum $4,230.45, CPP2 $416, EI $1,572.30 outside Quebec; QPP $4,479.30, QPP2 $416, EI $1,253.98, QPIP $620.06 in Quebec. Re-run this every January.
  • Assumes one employer for the whole year. The maximums are per employer, so a mid-year hire who already maxed out CPP or EI elsewhere still generates full contributions with you.
  • Leaves out employer health taxes (Ontario EHT, BC EHT, Manitoba's levy, Quebec's HSF), which are charged on total payroll rather than per employee, and workers' compensation premiums, which vary by province and rate group. Both are real costs on top of this figure.
  • Does not add vacation pay, because for a salaried employee it is already inside the salary as paid time off. For hourly and commission workers, where the percentage is genuinely added, use the vacation pay calculator.
  • Ignores the EI Premium Reduction Program (a lower multiplier for employers with a qualifying short-term disability plan) and every non-statutory cost. Treat this as the statutory floor.
Sources

What to do about it

The loaded figure is what a role costs the moment the offer is accepted. Whether it buys a year of output or a repeat of the search is decided before then. These steps are for whoever builds the headcount case, whether or not they hold the budget.

1

Budget on the loaded number, not the salary

Put the fully loaded figure into the headcount request and the finance model, with the province written beside it, and add your employer health tax and workers' compensation as separate lines. A team costed on base pay is understated, and finance finds out at year end.

2

Get Quebec right the first time

QPP, QPP2, the lower EI rate and QPIP change every line. If you employ people in Quebec and elsewhere, keep two sets of maximums and do not average them; the difference across a team is real money and a real audit finding.

3

Price the exit next to the entry

Ask what it costs if this hire leaves inside twelve months: the loaded salary paid for partial output plus recruitment again. Put that beside the loaded cost. It is the case for spending time on selection now.

4
Where a tool helps

Define what a good hire looks like at twelve months before you post the role

What must this person have delivered, and how will they need to work with the team? Written down, you can select for it consistently. Not written down, you select for the best interview.

5

Re-run this every January

CPP, CPP2, EI and QPIP ceilings all reset with the calendar year. Keep the loaded figure current for every role you plan to fill.

Step 4 is where
the premiums pay back.

Compono Hire is an applicant tracking system (ATS) that measures fit before you make the offer. It runs the process (job posting, pipeline, interview scheduling, offers) and adds what most ATSs leave out: a validated work personality and culture fit read on every candidate, scored the same way every time and shown next to the skills screen.

Step 4 asks you to define what a good hire looks like and select for it consistently. Hire does that inside the process, so the loaded cost above is committed to someone who stays and performs, and you are not back here in a year costing the same seat again.

See how it works
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Common questions

How does Quebec differ?

Five ways. Employees are in QPP rather than CPP at a 6.30% employer rate, EI is lower at a 1.30% employee rate, the employer pays QPIP at 0.602%, the health tax rules differ, and vacation pay reaches 6% at three years rather than five.

Does this include employer health tax or workers' compensation?

No, deliberately. Health taxes are charged on total payroll rather than per employee, and workers' compensation varies by province and industry rate group. Both are real costs that sit on top of this figure.

Why is vacation pay not added?

Because for a salaried employee it is already inside the salary as paid time off. Adding 4% on top would double-count. Vacation pay is an additional cost for hourly and casual workers, which the vacation pay calculator covers.

This page is general information, not legal advice. We check figures annually and update them on a best-efforts basis, but employment rules change and we cannot promise everything here is current or complete. Before you act on it, confirm the detail with your provincial employment standards office or your own adviser. Last reviewed July 2026.

Next step

Business case

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CPP and EI employer cost calculator (Canada)

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CPP and EI contributions

The plain-English definition, with the calculators and rules that sit around it.

Read the definition →Talk to us

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