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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.

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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.

Where Compono fits

Getting the statutory costs right tells you what a role costs. It does not tell you whether the person will still be there next year. That is the expensive question, and it is a fit question. Compono Hire runs the process every applicant tracking system runs, then adds behavioural and culture-fit data so the money you commit lands on someone who stays and performs.

See how it works

How it's calculated

Outside Quebec, the employer matches the employee's CPP at 5.95% of pensionable earnings between the $3,500 basic exemption and the $74,600 maximum, which caps the employer contribution at $4,230.45. CPP2 adds 4% on earnings between $74,600 and $85,000, a maximum of $416. Employment Insurance is charged at 1.4 times the employee rate of 1.63% on insurable earnings up to $68,900, a maximum employer premium of $1,572.30. In Quebec the employee is in QPP rather than CPP, so the employer rate is 6.30% for a maximum of $4,479.30, plus QPP2 of 4% to a $416 maximum. Quebec's EI employee rate is lower at 1.30%, giving a maximum employer premium of $1,253.98, because parental benefits are carved out into the Quebec Parental Insurance Plan, which the employer pays separately at 0.602% on earnings up to $103,000, a maximum of $620.06. Three real costs sit outside this estimate and it would be wrong to imply otherwise. Employer health taxes (Ontario EHT, BC EHT, Manitoba, Quebec HSF) are charged on total payroll rather than per employee, so they cannot be shown accurately on a single salary. Workers' compensation premiums vary by province and industry rate group. Vacation pay is already inside a salaried employee's pay rather than on top of it, so adding it here would double-count. All figures are calendar year 2026 and reset on 1 January.

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

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.