How CPP and EI Work

CPP and EI each have annual earning limits—$74,600 for CPP and $68,900 for EI in 2026. Once your earnings for the year reach these limits, your CPP and EI contributions stop for the remainder of the year.

Why $85,000 is a payroll milestone

It’s considered a milestone because $85,000 aligns closely with the Year’s Additional Maximum Pensionable Earnings (YAMPE), a threshold used by the Canada Pension Plan. Once your earnings reach the annual CPP and EI limits, you’ve finished paying all mandatory payroll insurance contributions for the year. After that point, your take‑home pay increases because CPP and EI deductions no longer apply.

How pay frequency changes your stop dates

Even though every $85,000 earner pays the same total CPP and EI for the year, your stop dates shift depending on how often you’re paid. Monthly pay pushes you to the caps faster because each paycheque is larger. Bi‑weekly and semi‑monthly schedules spread your income across more periods, so you reach the limits later in the fall. Once those caps are hit, your take‑home pay increases because CPP and EI are no longer deducted for the rest of the year.

When EI, CPP, and CPP2 typically stop

Most $85,000 earners reach their EI, CPP1 limits in the fall, but the exact stop dates shift based on how often you’re paid. CPP2 applies to earnings between the YMPE ( Year’s Maximum Pensionable Earnings) and the YAMPE (Year’s Additional Maximum Pensionable Earnings). In 2026, the upper ceiling for CPP2 is $85,000. The table below shows how each pay frequency typically plays out.

Pay Frequency	Pay Periods	Gross Per Pay	When EI Maxes Out	When CPP1 Maxes Out	When CPP2 Maxes Out
Monthly	12	$7,083.33	October 1	November 1	December 31
Bi‑Weekly	26	$3,269.23	Late October	Mid‑November	Late December
Semi‑Monthly	24	$3,541.67	Late October	Mid‑November	Late December