CPP and EI rate max 2022 (as usual) are a little higher. Were they somewhat following the inflation rate? Not the current rate of inflation, luckily. Lots of arguments about how CPP and EI are a tax? CPP is the Canada Pension Plan, and EI is Employment Insurance, so now sure what they are getting at.
One of my most popular posts in 2021 was CPP (Canada Pension Plan) and EI (Employment Insurance) rates for 2021, so I figure I’ll keep going with a winner. Interestingly interest in this topic is year-round. CPP and EI rates for 2021 (as usual) are a little higher.
Will 2022 be a better year? I don’t know, but it starts with a bang (read Omicron COVID).
As we start 2022 (a new year), all who receive paycheques (the Japanese term is Salaryman) get to start paying CPP and EI premiums again. Depending on how much you make, this might be a short-term issue or a year-long pain.
If you pay CPP and EI premiums all year long, don’t worry, this is not for you. Read on for those who have an end date for your CPP premiums.
CPP EI Max 2022
EI this year is again a bit lower:
- The maximum insurable earnings for 2022 is $60,300, up from $56,300 in 2021. This is the EI maximum insured income for the year. If you earn more than this, and claim EI, this is what your benefits will be based on.
- The rates have remained the same as last year:
- Workers rate (self-employed folks should research further, or if you live in Quebec) $1.58 per $100 earned.
- Maximum premium paid $ 952.74, once you reach this point no more EI will be deducted from your pay
- Max difference from 2021 $ 63.20 more, over the year.
CPP rates continue to rise. The system is under more pressure from more Boomers retiring.
- Maximum Pensionable Earnings: $64,900 (up from $61.600 in 2021)
- Employee Contribution Rate : 5.70 % (rate is up 0.25 % over 2021)
- Maximum contribution for year: $ 3,499.80 ($6,999.60 if self-employed)
Guess How Much Bill Makes
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)?
|Approx Gross Income||Per Pay EI||Per Pay CPP|
So from this helpful table, we can guess Bill makes more than $105,000.00. Isn’t this a fun game to play? Also, if Bill told you what the approximate EI deduction is on his paycheque, you can guess his gross income using this remarkable 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).
- 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