Ontario Cpp Ei Rates 2025 Payroll Calculator

Calculate your Ontario Canada Pension Plan (CPP) and Employment Insurance (EI) deductions for 2025 payroll with this professional calculator. Understand how these contributions affect your net pay and learn about the current rates and maximums.

How to Calculate Ontario CPP and EI Rates

The Canada Pension Plan (CPP) and Employment Insurance (EI) are mandatory deductions from your payroll in Ontario. The rates and maximums are set by the government and apply to all eligible employees.

CPP Calculation

The CPP contribution rate is 5.95% of your earnings, up to the maximum insurable earnings (MIE) for the year. In 2025, the MIE is $71,400.

EI Calculation

The EI premium rate is 1.66% of your earnings, up to the EI insurable earnings limit. In 2025, the EI insurable earnings limit is $63,700.

Note: These rates and limits are subject to change. Always verify with the latest government publications before processing payroll.

Combined Deductions

For most employees, the total deductions will be the sum of CPP and EI contributions, but not exceeding the maximum combined rate of 7.61%.

Formula Used

The calculator uses the following formulas to determine your CPP and EI contributions:

CPP Contribution: CPP = Earnings × 0.0595 (capped at MIE × 0.0595)

EI Premium: EI = Earnings × 0.0166 (capped at EI limit × 0.0166)

Total Deductions: Total = CPP + EI (capped at Earnings × 0.0761)

Where:

Earnings = Your gross pay before deductions
MIE = Maximum Insurable Earnings for CPP (2025: $71,400)
EI Limit = EI Insurable Earnings Limit (2025: $63,700)

Worked Example

Let's calculate the CPP and EI deductions for an employee earning $50,000 in 2025.

Calculation	Value
Gross Earnings	$50,000.00
CPP Contribution (5.95%)	$2,975.00
EI Premium (1.66%)	$830.00
Total Deductions	$3,805.00
Net Pay	$46,195.00

In this example, the employee's net pay after CPP and EI deductions is $46,195.

Frequently Asked Questions

What are the current CPP and EI rates for 2025?

The CPP contribution rate is 5.95% and the EI premium rate is 1.66% for 2025. The maximum insurable earnings for CPP is $71,400 and the EI insurable earnings limit is $63,700.

How do CPP and EI deductions affect my paycheck?

CPP and EI deductions reduce your net pay. For example, an employee earning $50,000 will have $3,805 deducted, resulting in a net pay of $46,195.

Are there any exemptions for CPP and EI?

No, all eligible employees must contribute to CPP and EI. There are no exemptions for these mandatory deductions.

How often are CPP and EI rates updated?

CPP and EI rates are typically updated annually by the government. It's important to verify the latest rates before processing payroll.