One of my most popular posts in 2019 was CPP and EI rates for 2019, so I figure I’ll keep going with a winning combination. More up to date like 2021 you can find here.
As we start 2020 (a new year and a new decade), all we folks who receive pay cheques (I believe the Japanese term is Salaryman), we get to start paying CPP and EI premiums again, hooray! Taxes make us strong!?! I resolved to pay less taxes legally this year.
If you pay CPP and EI premiums all year long, this is not for you, however, for those lucky enough to earn more than that, read on.
EI this year is again a bit lower:
- The maximum insurable earnings for 2020 is $54,200, up from $53,100 in 2019.
- The rates have lowered a little as well:
- Workers rate (self-employed folks should research further, or if you live in Quebec) $1.58 per $100 earned.
- Maximum premium paid $856.36 , once you reach this point no more EI will be deducted from your pay
- Max difference from 2019 -$3.86
CPP rates continue to rise. Given the number of retirees, not surprising really.
- Maximum Pensionable Earnings: $58,700
- Employee Contribution Rate : 5.25 % (rate is up 0.15 % over 2019)
- Maximum contribution for year: $2,898.00
Guess How Much Bill Makes
Somewhere around July, Bill (a friend) says he has paid off his CPP & EI, can we construe from this how much Bill makes (given he lives in Ontario and is not self-employed)?
|Month||Bi-Weekly Pays||Approx Gross Income||Per Pay EI||Per Pay CPP|
So from this helpful table, we can guess Bill makes less than $88,100.00. Isn’t this a fun game to play? Also if Bill told you what the approximate EI deduction is on his pay cheque, you can also guess his gross income, using this cool table.
Past CPP & EI
Yes, it is a topic I write about, as it is essential to me. Here are a few from the past years to compare and contrast (hint see how much CPP has gone up).
- With Inflation roaring CPP and EI for 2023 went up
- For 2022 the CPP and EI Limits went up again
- The 2021 limits for CPP and EI were
- CPP and EI for 2020
- CPP and EI for 2019
- Merry New Year, CPP, EI and #MoneyTalk (2017)
- Gosh Darn it! CPP & EI Again!!! (2014)
- Fun with Numbers for 2013 (CPP and EI)
- Gosh Darn CPP and EI! (2010)
- Fun with Numbers with CPP and EI (2007)
These are the sites I gleaned the information from
As a retired (2017) baby boomer, I just want to thank all those still contributing to CPP/QPP for my monthly automatic deposit.
If it were not for you the system might have failed me. Hope it does not fail you. So when you look at you pay stub and see those CPP/QPP deductions just remember me and say :this is a worthwhile deduction because it is helping RICARDO make ends meet.
Please consider the repercussions if you get to “FIRE” and stop contributing to my retirement. It probably will not affect me but it may affect your retirement income if too many people achieve “FIRE”
So please keep on working and, again. think of me when you get your pay.
I read your info on CPP and EI.
I’m wondering how receiving a monthly CPP of $370/month, will affect an employment insurance claim in Alberta, Canada in 2020′?
Don’t know about Alberta’s rules and such, maybe other readers can help?