CPP and EI for 2024

bigcajunman

Nov 29

Another year, another yearly chestnut! CPP and EI Max return again!

EI rate max 2024 (as usual) is a little higher, CPP remains the same. Was it following the inflation rate? Not the current rate of inflation, luckily.

Now, this is the EI rate, not the AI rate. We are talking about Employment Insurance, not Artificial Intelligence. AI will come into play, no doubt, but not just yet.

Lots of arguments about how CPP and EI are tax. CPP is the Canada Pension Plan, and EI is Employment Insurance, so not sure what they are getting at. It sounds like a rallying cry for those who feel their rights are being invaded.

Interest in this topic is year-round. The EI rates for 2024 are slightly higher, but the CPP rate stayed the same.

Will 2024 be a better year? I will no longer comment on this area, as my prognostication skills are subpar. This past year has been quite the year, and I do not wish even to guess what 2024 might bring as a year.

When we start 2024 (a new year), all who receive pay cheques (the Japanese term is Salaryman) get to start paying CPP and EI premiums again. Depending on how much you make, this might be a short-term issue or a year-long pain.

If you pay CPP and EI premiums all year, don't worry; this is not for you. Read on for those who have an end date for your CPP premiums.

CPP EI Max 2024

EI this year is again a bit lower:

The maximum insurable earnings for 2024 is $63,200, up from $61,500 in 2023. This is the EI maximum insured income for the year. If you earn more than this and claim EI, your benefits will be based on this amount.
The rates are up from last year:
- Workers rate (self-employed folks should research further, or if you live in Quebec) $1.66 per $100 earned.
- Maximum premium paid $1,049.12. Once you reach this point, no more EI will be deducted from your pay
- Max difference from 2022 is $46.67 more over the year.

CPP rates did not rise. However, the max earnings did go up.

Maximum Pensionable Earnings: $68,500 (up from $66,600 in 2023)
Employee Contribution Rate: 5.95 % (no increase this year)
The maximum contribution for year: $3,867.50 ($7,735.00 if self-employed)

When do I stop Paying?

A simple table of when you might stop paying EI and CPP. Find your approximate gross income in column 3, and the first column should estimate when you stop paying.

What Month Do You Stop Paying CPP and EI?
Month	Bi-Weekly Pays	Approx Gross Income	Per Pay EI	Per Pay CPP
January	2	$851,500.00	$524.56	$1,933.75
February	4	$425,750.00	$262.28	$966.88
March	7	$243,285.71	$149.87	$552.50
April	9	$189,222.22	$116.57	$429.72
May	11	$154,818.18	$95.37	$351.59
June	13	$131,000.00	$80.70	$297.50
July	15	$113,533.33	$69.94	$257.83
August	17	$100,176.47	$61.71	$227.50
September	20	$85,150.00	$52.46	$193.38
October	22	$77,409.09	$47.69	$175.80
November	24	$70,958.33	$43.71	$161.15
December	26	$65,500.00	$40.35	$148.75

Past CPP & EI

Yes, it is a topic I write about, as it is essential to me. Here are a few from the past years to compare and contrast (hint see how much CPP has gone up).