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CPP and EI for 2023

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 tax. CPP is the Canada Pension Plan, and EI is Employment Insurance, so not sure what they are getting at. It sounds like a rallying cry for those who feel their rights are being invaded.

One of my most popular posts in 2022 was CPP (Canada Pension Plan) and EI (Employment Insurance) rates for 2023, so I figure I’ll keep going with a winner. Interestingly interest in this topic is year-round. CPP and EI rates for 2023 (as usual) are a little higher.

Will 2023 be a better year? I will no longer comment on this area, as my prognostication skills are subpar.

As we start 2023 (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 2023

EI this year is again a bit lower:

  • The maximum insurable earnings for 2023 is $61,500, up from $60,300 in 2022. 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 are up from last year:
    • Workers rate (self-employed folks should research further, or if you live in Quebec) $1.63 per $100 earned.
    • Maximum premium paid $1,002.45. Once you reach this point, no more EI will be deducted from your pay
    • Max difference from 2022 is $ 49.71 more over the year.

CPP rates continue to rise. With more Canadians retiring, this is to be expected.

  • Maximum Pensionable Earnings: $66,600 (up from $64,900 in 2022)
  • Employee Contribution Rate : 5.95 % (rate is up 0.25 % over 2022)
  • The maximum contribution for year: $ 3,701 ($7402 if self-employed)
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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)?

MonthBi-Weekly PaysApprox Gross IncomePer Pay EIPer Pay CPP
January2$814,842.02$501.23$1,850.50
February4$407,421.01$250.61$925.25
March7$232,812.00$143.21$528.71
April9$181,076.00$111.38$411.22
May 11$148,153.09$91.13$336.45
June13$125,360.31$77.11$284.69
July 15$108,645.60$66.83$246.73
August17$95,863.77$58.97$217.71
September20$81,484.20$50.12$185.05
October22$74,076.55$45.57$168.23
November 24$67,903.50$41.77$154.21
December26$62,680.16$38.56$142.35
A fun estimation game

So from this helpful table, we can guess Bill makes more than $108,000.00. Isn’t this a fun game to play? Also, if Bill told you the approximate EI deduction 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).

Reference:

These are the sites I gleaned the information from

FAQ Answers for CPP & EI Maximums for 2023

What is the EI Maximum for 2023?

  • The maximum premium paid is $ 1,002.45
  • What is the CPP Maximum payment for 2023?

  • The maximum contribution for year: $ 3,701.00 for regular workers $ 7402.00 for self-employed workers
  • What is the EI Maximum Insurable Income for 2023?

  • The maximum insurable earnings for 2023 is $ 61,500 , up from $60,300 in 2022
  • What is the CPP maximum insurable income for 2023?

  • Maximum Pensionable Earnings: $66,600 (up from $64,900 in 2022)
  • Feel Free to Comment

    1. One of the things you want to keep in mind is that government agencies are not infallible (ROFL).
      It would be advisable, after a few decades in the workforce to check your payment years in to CPP/RRQ. I checked that once and they had me listed as “0” revenue/payments for one year. Luckily, I had my end of year paystub or you could use a yearly tax filing to correct the error on their part. If could make a difference in your CPP/RRQ payout.
      As to CPP/RRQ and EI being “taxes”, as some would argue, I would venture to say that they would/willl be the first in line to collect them if mis-fortune were to beset them. Usually they will classify these programs as socialist red leaning programs. To which I ask if they would have all socialist programs like welfare, medicare, police, fire depatments, etc etc. eliminated. After all these are all “socialist ” programs in one form or another,
      Live free or die – except don’t take away my goodies.

      RICARDO

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