CPP and EI rates for 2021 (as usual) are a little higher. Somewhat following the inflation rate, after a fashion.
One of my most popular posts in 2020 was CPP (Canada Pension Plan) and EI (Employment Insurance) rates for 2020, 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.
We can hope that 2021 will be a better year. Hopefully a year where you don’t need to receive EI as CERB is now gone.
As we start 2021 (a new year), all of us who receive pay cheques (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. For those who have an end date for your CPP premiums, read on.
EI this year is again a bit lower:
- The maximum insurable earnings for 2021 is $56,300, up from $54,200 in 2020. 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 $ 889.54, once you reach this point no more EI will be deducted from your pay
- Max difference from 2020 $ 33.18 more, over the year.
CPP rates continue to rise. The system is under more pressure from more Boomers retiring.
- Maximum Pensionable Earnings: $61,600 (up from $58,700 in 2020)
- Employee Contribution Rate : 5.45 % (rate is up 0.20 % over 2020)
- Maximum contribution for year: $ 3,166.45 ($6,332.90 if self-employed)
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 $100,000.00. 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 important to me. Here are a few from the past years, to compare and contrast (hint see how much CPP has gone up).
- 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