EI And CPP Rates And Maximums for 2023

The Employment Insurance (EI) program provides temporary financial assistance to unemployed Canadians who have lost their job through no fault of their own, while they look for work or upgrade their skills. The Canada Pension Plan (CPP) is a retirement pension program that you and your employer make contributions to during your working years. In this blog post, we'll be taking a look at the EI and CPP rates and maximums for 2022.
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As an employer, it’s important to know the Employment Insurance (EI) and Canada Pension Plan (CPP) rates and maximums for the upcoming year. This way, you can budget correctly and ensure that you’re withholding the correct amount from your employees’ paycheques. Here are the rates and maximums for 2023.

Quick Overview: 

1. The Employment Insurance (EI) rate for 2023 is 1.63%.
2. The maximum insurable earnings for EI in 2023 is $61,500
3. The Canada Pension Plan (CPP) rate for 2023 is 5.95%.
4. The maximum pensionable earnings for CPP in 2023 is $66,600.
5. The maximum CPP contribution for an individual in 2023 is $3,754.45.

EI Rates And Maximums For 2023

The EI program provides temporary financial assistance to unemployed Canadians who have lost their job through no fault of their own. It offers a safety net of 55% of your insurable earnings, up to a maximum of $573 per week. The EI premium rate for 2023 is $1.63 per $100 of insurable earnings, which is a decrease from the 2021 rate of $1.61. The maximum annual insurable earnings for 2023 is $91,800, which is an increase from the 2021 maximum of $89,400.

CPP Rates And Maximums For 2023

The CPP is a contributory, publicly-funded pension plan that provides income replacement after retirement. The CPP contribution rate for employees and employers in 2023 is 5.45%, which is unchanged from the 2021 rate. The basic exemption amount for 2023 is $3,500, which is an increase from the 2021 exemption amount of $3,480. The maximum pensionable earnings for 2023 is $61,500, which is an increase from the 2021 maximum of $60,300.

EI Benefits in 2023

The maximum weekly benefit amount for EI will be $801 in 2023, up from $795 in 2021. The minimum weekly benefit amount will remain unchanged at $500. The maximum insurable earnings for EI purposes will increase to $62,500 in 2023, up from $61,500 in 2021. The basic premium rate for EI will remain unchanged at $1.58 per $100 of insurable earnings.

CPP Contributions in 2023

The contribution rate for employees and self-employed individuals will remain unchanged at 9.9% in 2023. The contribution rate for employers will also remain unchanged at 9.9%. The maximum pensionable earnings for CPP purposes will increase to $70,900 in 2023, up from $69,700 in 2021. The basic exemption amount will remain unchanged at $3,500.

Conclusion:
As you can see, the EI and CPP rates and maximums are set to increase in 2023. If you have any questions about how these changes may affect you or your family, please don’t hesitate to reach out to us. We’re here to help!

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Vik Palan

Chief Editor - Ratestead.ca

8 Comments
  1. This article is incorrect and should be taken down or corrected CPP rate for 2022 is not 5.45%

  2. EI Benefits in 2023
    The maximum weekly benefit amount for EI will be $801 in 2023, up from $795 in 2021.

    The amount above is incorrect. The correct figure in Ontario is $650/week as per Canada.ca

    https://www.canada.ca/en/services/benefits/ei/ei-regular-benefit/benefit-amount.html#h2.01

  3. Rates are still wrong for 2023.

  4. And the basic exemption for CPP is $3,500 and has been for as long as I can remember. You get the amount right in one place, and then wrong in another, and incorrectly state that it has increased since 2021.

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