What Happens When CPP and EI Max Out Mid-Year?

Most Canadians are surprised to find extra money in a late-year paycheck. It isn't a mistake — it's your CPP and EI contributions hitting their annual caps.

How the caps work

The Canada Revenue Agency sets a maximum amount you can contribute to CPP and EI each calendar year. Once you've contributed that much, deductions stop for the rest of the year.

For 2026:

Quebec note: Quebec uses QPP instead of CPP (rate: 6.30%, cap: $4,348.40) and also deducts QPIP (0.43%). EI is lower in Quebec (1.31%) because QPIP covers part of the same risk.

When do they max out?

For a typical Ontario employee earning $75,000/year on a biweekly schedule (26 pay periods):

• CPP1 biweekly deduction ≈ $163/period → maxes out at pay period 26 (final period of the year)
• EI biweekly deduction ≈ $43/period → maxes out at pay period 26 at this income level

Higher earners hit the caps much earlier. For example, someone earning $150,000/year would max out CPP by roughly pay period 13 and EI by pay period 8.

What you actually gain

When CPP maxes out, you keep an extra ~$162.71 per biweekly paycheck. When EI maxes out, you keep an extra ~$43.19. Combined with CPP2 (~$16.00), that's potentially $221.90 extra per pay period for the remaining periods after the caps are hit.

Why your employer still deducts after the cap

Your employer is required to stop CPP and EI deductions once you've hit the annual maximum. If you notice deductions continuing past the cap, contact your payroll department — it's a payroll configuration issue, and you're entitled to a refund of the overdeduction.

Tracking it yourself

You can use the Earneli calculator to see your exact CPP and EI cap pay period. Enter your salary and province — the results section shows exactly which period your deductions stop and how much extra you'll take home.