Is my employer required to deduct CPP and EI from my pay?

Yes. All Canadian employers are legally required to deduct CPP contributions and EI premiums from employee wages and remit both the employee and employer portions to the CRA. Failing to do so is a federal offence under the Income Tax Act and the Employment Insurance Act.

How can I tell if my employer is not paying CPP or EI?

Check your pay stub. You should see a line for CPP and EI deductions on every paycheque (unless you are exempt). Also check your T4 at end of year — Box 16 is CPP, Box 18 is EI. If these are blank or zero and you worked more than the minimum threshold, something is wrong.

What happens if my employer isn''t remitting CPP to the CRA?

The CRA may not have a record of your contributions, which can affect your future CPP retirement benefit and your ability to claim benefits such as CPP disability. The employer owes the CRA both their own share and the amounts they deducted (or should have deducted) from your wages.

Will I lose my CPP contributions if my employer didn''t remit them?

Not necessarily. If you report the problem to the CRA, they can pursue the employer. If you paid anything — or your employer deducted it but didn''t remit — a CRA investigation can result in those contributions being credited to your account. Self-employed people pay both halves themselves if no employer does it.

Can I be exempt from CPP or EI deductions?

Some workers are genuinely exempt: CPP exemptions apply if you are under 18, over 70, receiving a CPP retirement pension, or have a disability pension. EI exemptions apply if you earn below the annual minimum insurable amount or work in certain employment categories. If you don''t fall into these, deductions are mandatory.

My Employer Is Not Paying CPP or EI in Canada

Every paycheque from a Canadian employer should include deductions for CPP and EI. If yours doesn’t — or if you suspect your employer is deducting but not actually remitting the money to the CRA — it is a serious legal problem that can affect your retirement and benefit eligibility.

The short answer

Check your pay stubs and T4 for CPP and EI deductions. If they are missing and you are not exempt, report the issue to the CRA. The employer is liable, but you need to act to protect your contribution record.

How to check if CPP and EI are being remitted

On your pay stub

Every paycheque should show these deductions:

Deduction	What to Look For
CPP (Canada Pension Plan)	A line labeled “CPP” or “Pension Canada” — typically several hundred dollars per pay period
EI (Employment Insurance)	A line labeled “EI” — typically smaller than CPP

If these lines are blank or say $0.00 and you are not in an exempt category, raise it with your employer immediately.

On your T4 (issued in February)

T4 Box	What It Shows
Box 14	Employment income
Box 16	Employee CPP contributions
Box 18	Employee EI premiums
Box 22	Income tax deducted

If boxes 16 and 18 are $0 when they should not be, your employer may not have been deducting or remitting.

2026 CPP and EI rates

	Employee Share	Employer Share
CPP rate	5.95%	5.95%
CPP maximum contribution	$3,867.50	$3,867.50
CPP2 rate (on earnings $68,500–$81,200)	4.00%	4.00%
EI rate	1.66%	2.32% (1.4×)
EI maximum premium	$1,077.48	$1,508.47

Your employer must remit both the employee deduction and their own employer share.

Why this matters for you

CPP retirement benefit

Your future CPP pension is based on your contribution history. If your employer is not remitting CPP on your behalf, those years may not be reflected in your CPP Statement of Contributions. Fewer contributions = lower lifetime pension.

Check your CPP Statement of Contributions: Log in at My Service Canada Account (canada.ca/my-service-canada) to see what has actually been recorded.

EI eligibility

Your EI benefit entitlement is based on insurable hours and insurable earnings. If EI premiums have not been remitted, your employment may not appear as insurable employment, which could affect any future EI claim.

What to do

Step 1: Raise it with your employer

Ask payroll or HR why CPP and EI deductions are not appearing on your pay stubs. Request a written explanation.

Step 2: File a complaint with the CRA

If your employer cannot explain the missing deductions, contact the CRA:

Phone: 1-800-959-5525 (Business enquiries)
Online: Submit via the Informant Leads Program at canada.ca/cra-informant-leads if you believe it is intentional non-remittance
Request a CPP/EI ruling: File Form CPT1 to have the CRA formally determine whether your wages were insurable

Step 3: Check your contribution record

Log in to My Service Canada Account and review your CPP Statement of Contributions. You can see the contributions recorded for each year. If years of employment are missing, flag this when you contact the CRA.

Who is liable

The employer is legally responsible for remitting both shares. If they fail to do so:

The CRA can assess the employer for all amounts owed plus interest and penalties
Corporate directors can be held personally liable for unremitted payroll deductions
Criminal charges are possible for willful non-remittance

You are not required to pay the employer’s share yourself. However, you may need to follow up to ensure your contribution record is corrected.

Key takeaway

Missing CPP and EI deductions are not a bookkeeping quirk — they are a federal violation with real consequences for your retirement and benefit eligibility. Check your T4, verify your CPP Statement of Contributions, and report discrepancies to the CRA promptly.

How CPP and EI contributions appear on your paycheque

Every Canadian employee’’s pay stub should show these deductions separately:

CPP1 (Canada Pension Plan): Employee contribution rate for 2026 is 5.95% on earnings between $3,500 and $73,200
CPP2 (second additional CPP): An additional 4% on earnings between $73,200 and $81,900 (applies only to earnings in this range)
EI: Employee rate for 2026 is 1.66% of insurable earnings up to $65,700

Your employer must match your CPP at 1:1 (same rate) and pay EI at 1.4× the employee contribution. If your pay stub does not show these deductions, that is a clear problem.

Frequently asked questions

What if I never received CPP credit for years my employer didn’’t remit? Your CPP entitlement is based on contributions recorded on your SIN. If an employer deducted CPP from your paycheque but didn’’t remit to CRA, your personal CPP account may be short. File a complaint with CRA — they can pursue the employer for the unremitted amounts, and in some cases, your record may be updated. Keep T4s as evidence.

Can I be fired for reporting my employer to CRA? No. Retaliating against an employee for making a CRA or employment standards complaint is illegal. This is called “reprisal” under employment standards legislation. If you are dismissed or disciplined after filing a complaint, you have grounds for a reprisal complaint in addition to your original claim.

How long does CRA take to investigate? CRA does not publish standard timelines for employer investigations. Complex cases with multiple employees can take months to years. If you are concerned about immediate financial harm (e.g., you need your CPP contributions recorded for retirement purposes), consult an employment lawyer or accountant about your options in parallel.

→ Back to: Personal Finance Guide