How do I know if my employer is paying CPP on my wages?

Check Box 16 on your T4 slip — this shows the total CPP contributions deducted from your pay in the calendar year. Your employer is required to match this amount and remit both portions to CRA on your behalf. If Box 16 is blank or zero and you worked more than the minimum threshold (~$3,500 in annual earnings), your employer may not have deducted CPP correctly. You can verify your CPP contributions at any time through My Service Canada Account.

What should Box 16 on my T4 say?

Box 16 (CPP contributions deducted) should equal approximately 5.95% of your pensionable earnings above $3,500 (the basic exemption), up to the maximum in 2025 of $4,034.10. For 2026, the CPP1 maximum is $4,034.10 and the CPP2 maximum enhancement adds up to $396.00, for a combined employee maximum of $4,429.85. If your annual earnings are above $73,200, Box 16 should be near these maximums.

What happens if my employer did not deduct CPP from my pay?

If your employer failed to deduct CPP, you are still liable for the employee share. CRA will assess you for the missing contributions when they process your return (if the employer reported your earnings without CPP). You can then submit Form CPT20 (Election to Pay CPP Contributions) or CRA will add the amount to your balance owing. Your employer owes CRA the employer's matching share and penalties for failing to remit.

Am I exempt from CPP contributions?

You are exempt from CPP if: you are under 18; you are 70 or older; you are receiving a CPP or QPP retirement pension and have filed CPT30 to opt out; you earn less than $3,500 in a calendar year; you work in Quebec (QPP applies instead of CPP); or you are in certain employment categories that are not pensionable (casual employment under specific thresholds, some agricultural workers).

How much CPP will I receive in retirement based on my contributions?

Your CPP retirement benefit is based on how much and how long you contributed. The maximum CPP retirement benefit in 2026 for someone who contributed the maximum for 39+ years is approximately $1,364/month (CPP1 only). The average Canadian receives around $850/month. You can see your projected CPP amount through My Service Canada Account under "Canada Pension Plan."

What is the difference between CPP1 and CPP2?

CPP1 is the original Canada Pension Plan, which covers earnings up to the Year's Maximum Pensionable Earnings (YMPE) — $73,200 in 2026. CPP2 is an enhancement introduced in 2024 that covers earnings between the YMPE and the Year's Additional Maximum Pensionable Earnings (YAMPE) — $81,900 in 2026. Both have separate employee contribution rates and maximums. Both appear on your T4 (Box 16 for CPP1; Box 16A for CPP2) and will both generate additional retirement benefits.

Can I verify my lifetime CPP contribution history?

Yes. Log into My Service Canada Account at canada.ca/en/employment-social-development/services/my-account.html. Under "Canada Pension Plan," you can see your annual contributory earnings and contributions going back to 1966. This also shows your estimated CPP benefit at different retirement ages. If you notice missing years or incorrect earnings, contact Service Canada to investigate.

How Do I Know If My Employer Is Paying CPP?

Your CPP contributions are one of the most important payroll deductions your employer makes — they directly determine how much CPP retirement pension you will receive. Verifying they are being paid correctly takes just a few minutes.

What CPP deductions should look like on your pay stub

Every pay period, your employer deducts employee CPP contributions from your gross pay and remits both the employee and employer shares to CRA. Here is what the math looks like:

Item	2026 Amount
Basic personal exemption (annual)	$3,500
Year’s Maximum Pensionable Earnings (YMPE) — CPP1	$73,200
Year’s Additional Maximum Pensionable Earnings (YAMPE) — CPP2	$81,900
CPP1 employee contribution rate	5.95%
CPP2 employee contribution rate	4.00%
Maximum CPP1 employee contribution (2026)	$4,034.10
Maximum CPP2 employee contribution (2026)	~$344.00
Combined employee maximum (2026)	~$4,378.10
Employer match (equals employee CPP1)	$4,034.10

Per-paycheque deduction example (bi-weekly, $80,000 salary):

Pensionable earnings per period: ($80,000 − $3,500) ÷ 26 = $2,942.31
CPP1 per period: $2,942.31 × 5.95% = $175.07 (until CPP1 maximum reached)
CPP2 per period (on earnings above $73,200 ÷ 26 = $2,815.38): small additional amount

How to verify your employer is paying CPP

Method 1: Check your T4 slip

Your T4 slip shows:

Box 14 — Employment income: Your total insurable earnings
Box 16 — CPP contributions: What was deducted from your pay (employee share only)
Box 16A — CPP2 contributions: Enhancement contributions deducted (if you earned > YMPE)
Box 26 — CPP/QPP pensionable earnings: The earnings base for CPP calculation

Verification check: Box 16 should be approximately (Box 26 − $3,500) × 5.95%, up to $4,034.10.

If Box 16 is $0 and Box 26 is over $3,500, something is wrong.

Method 2: My Service Canada Account

Log into canada.ca → My Service Canada Account → “Canada Pension Plan” → “Contributions.”

This shows your actual annual contributory earnings and contributions reported by every employer. If a year is missing or shows lower earnings than you earned, your employer may not have reported correctly.

Method 3: Your pay stubs

Review any pay stub and look for a line called “CPP” or “Canada Pension Plan.” This should appear as a deduction on every pay period (until the annual maximum is reached). If it is absent, ask your payroll department why.

When CPP is legitimately not deducted

Not every worker owes CPP. Your employer correctly omits CPP if:

Situation	Why no CPP
You are under 18	Age exemption
You are 70 or older	No longer required to contribute
You receive CPP/QPP retirement pension AND filed Form CPT30	Opted out voluntarily
You work in Quebec	QPP applies instead (similar system, different program)
You earn less than $3,500/year with that employer	Below the basic exemption
You are a non-resident employee in certain categories	CRA-exempt employment

If you believe an exemption applies to you incorrectly, review CRA Guide T4001 (Employers’ Guide — Payroll Deductions and Remittances) or call CRA Payroll at 1-800-959-5525.

What to do if CPP was not deducted from your pay

Scenario A: You realize it mid-year

Talk to your payroll department immediately. They should catch up the missing deductions over remaining pay periods, potentially deducting more per period to reach the annual maximum.

Scenario B: You notice it when your T4 arrives

If Box 16 is $0 or lower than expected on your T4:

File your return anyway — do not wait
CRA may automatically calculate the amount owing and include it on your Notice of Assessment
Alternatively, complete Form CPT20 to voluntarily pay the missing employee contributions
Your employer is separately responsible to CRA for the employer’s matching share plus penalties

Scenario C: You think your employer is pocketing the deductions

If deductions appear on your pay stub but are not reflected in My Service Canada Account, this is payroll fraud. Report it to:

CRA Payroll at 1-800-959-5525 (anonymous tip line available)
Your provincial employment standards office

How CPP contributions affect your retirement

Every year of full CPP contributions builds your retirement benefit. The relationship is not dollar-for-dollar — it is based on a formula that considers your contributory earnings across your working life:

Annual earnings (approximate)	Estimated monthly CPP benefit at 65
$30,000 for 35 years	~$500–$550/month
$50,000 for 35 years	~$800–$850/month
$73,200+ (max) for 39 years	~$1,364/month (CPP1 only)

Missing years of contributions — due to employer non-payment, gaps in employment, or opting out — reduce your eventual benefit.