A pay stub shows what you earned in the pay period, everything taken off it, and what was deposited. This page walks through each section, the codes payroll systems use, and a worked example. It is part of the income tax hub, which also has the salary after tax calculator for take-home pay at any salary and the T4 slip guide for how the year’s stubs add up on your T4.
Anatomy of a Canadian pay stub
| Section | What it shows |
|---|---|
| Gross pay | Total earnings before deductions |
| Earnings breakdown | Regular hours, overtime, vacation, bonuses |
| Statutory deductions | Income tax, CPP, EI |
| Other deductions | Pension, benefits, RRSP, union dues |
| Net pay | The amount you receive, by deposit or cheque |
| Year-to-date (YTD) | Cumulative totals for the year, if your stub shows them |
Layouts vary by payroll provider, so the order of these sections on your stub may differ.
Common pay stub codes
| Code | Meaning | Type |
|---|---|---|
| REG / REG HRS | Regular hours/pay | Earnings |
| OT / OT 1.5 | Overtime at 1.5x rate | Earnings |
| STAT / STAT HOL | Statutory holiday pay | Earnings |
| VAC / VAC PAY | Vacation pay | Earnings |
| SICK | Sick leave pay | Earnings |
| BON / BONUS | Bonus payment | Earnings |
| RETRO | Retroactive pay adjustment | Earnings |
| FIT / FED TAX | Federal income tax | Deduction |
| PIT / PROV TAX | Provincial income tax | Deduction |
| CPP / QPP | Canada/Quebec Pension Plan | Deduction |
| CPP2 | Second additional CPP contribution | Deduction |
| EI / QPIP | Employment Insurance / Quebec Parental Insurance | Deduction |
| PEN / RPP | Registered Pension Plan contribution | Deduction |
| RRSP | RRSP contribution (payroll deduction) | Deduction |
| GRP INS / BEN | Group insurance / benefits | Deduction |
| UNION | Union dues | Deduction |
| LTD / STD | Long-term / short-term disability premium | Deduction |
| PARK | Parking deduction | Deduction |
| GARN | Garnishment (court order, support order or CRA Requirement to Pay) | Deduction |
Statutory deductions
Employers have to deduct three amounts from employment pay:
- Income tax, federal and provincial, withheld according to the TD1 forms you gave your employer (in Quebec, provincial tax follows Revenu Québec’s Form TP-1015.3-V instead of a provincial TD1). How the brackets work is in tax brackets in Canada, and the TD1 form guide explains how your claimed credits set the withholding.
- CPP contributions (QPP in Quebec), including CPP2 on earnings above the first ceiling, until you reach the year’s maximum. Rates and maximums are on CPP contribution rates. Not everyone contributes: You contribute to the CPP if you are over 18, work in Canada outside Quebec and earn more than $3,500 a year; contributions stop when you turn 70, and from 65 someone already receiving a CPP or QPP retirement pension can choose to stop.
- EI premiums until your earnings reach the year’s maximum insurable earnings, covered on EI contribution rates. In Quebec the EI rate is lower and QPIP premiums are deducted as well.
Employers match your CPP contributions and pay a larger share of EI than you do; the payroll tax calculator shows the employer’s share, and the withholding tax calculator shows what comes off your pay.
Worked example: $70,000 salary, biweekly, Ontario
A $70,000 salary paid every two weeks is 26 pays a year. Averaged over the year, at 2026 rates, each stub looks like this before any voluntary deductions:
| Line | Per pay (average) |
|---|---|
| Gross pay | $2,692.31 |
| Federal income tax | −$279.93 |
| Ontario income tax (including the Health Premium) | −$148.30 |
| CPP (including CPP2) | −$152.18 |
| EI | −$43.20 |
| Total statutory deductions | −$623.61 |
| Net pay before voluntary deductions | $2,068.70 |
Benefits premiums, pension contributions, RRSP deductions and union dues also come off. Pension contributions, union dues and RRSP contributions made through payroll are deducted before income tax is worked out, so they also lower the tax lines a little.
These are averages. A real stub deducts EI and CPP at their full rates until the yearly maximums are reached, then stops, so pays early in the year are a little smaller than late ones; why your paycheque changed explains this and the other reasons pay moves from one stub to the next. For take-home pay at other salaries and provinces, use the salary after tax calculator.
How to verify your deductions
| Check | How | If Wrong |
|---|---|---|
| Compare to CRA’s payroll calculator | Use CRA’s online payroll deductions calculator (outside Quebec; it doesn’t calculate Quebec’s provincial deductions) | Ask the payroll department |
| Verify income tax (TD1 form) | Confirm the TD1 claim amounts on file | File a new TD1 with your employer |
| Check CPP reaching its maximum | Deductions stop once the year’s maximum is reached | An overpayment is refunded on your tax return |
| Check EI reaching its maximum | Deductions stop after $68,900 of insurable earnings (2026) | An overpayment is refunded on your tax return |
| Match T4 to pay stubs | YTD totals should match T4 boxes | Contact your employer before filing |
How to know if your employer is paying CPP covers checking your contributions on the stub, the T4 and your CPP statement.
Related articles
Sources
The figures and rules on this page come from these sources, last checked against them between September 24, 2026 and October 1, 2026. How we check facts.
- Canada Revenue Agency: Employers’ Guide – Payroll Deductions and Remittances
- Canada Revenue Agency: Payroll Deductions Formulas - 123rd Edition Effective July 1, 2026
- Canada Revenue Agency: EI premium rates and maximums – Calculate payroll deductions and contributions
- Canada Revenue Agency: The Canada Pension Plan enhancement
- Government of Canada: 2026 Personal Tax Credits Return
- Government of Canada: Election to Stop Contributing to the Canada Pension Plan or Revocation of a Prior Election
- Government of Canada: CPP: How much you could receive