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 Updated with 2009 rates! This applies to you if you have a regular job with a salary over about $40,000 per year. We all have to pay CPP and EI, these are deducted at source by your payroll. Both CPP and EI have a maximum annual amount, and that payroll does not spread out the amount throughout the year. The net effect is your take home pay is less at the start of the year, until you reach your maximums.
In 2009, CPP employee contribution rate remains unchanged at 4.95%, and the maximum annual pensionable earnings has gone up from $44,900 to $46,300. If you work it out, with the basic exemption, you have to pay $2,118 CPP in 2009. That is an increase of $69.30 or 3% from last year.
For EI, the maximum annual insurable earnings has gone up from $41,100 to $42,300 and the EI rate remains unchanged at 1.73% for 2009. If you calculate that, you will need to pay a maximum of $732 for EI in 2009. That is an increase of $20.76 or 3% from last year (see a pattern there?). 
In the above table, you can see that for an income of $50,000 annually, you have reached your maximum at 10.3 months. It was 9.9 months in 2008, so things are getting worse. For some of November and December you get an extra $278 in your pay - just in time for holiday spending or topping up your RRSP. The more you earn, the sooner you reach your maximum CPP + EI. At a salary of $100,000 you get an extra $557 per month from June through to December. Even more to put into your RRSP...
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An excel file of the calculations is found here 
For 2009 CPP info, check here, for 2009 EI info check here
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Pat
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CPP and EI deductions for 2009
Written by 'Guest' on 2009-01-20 17:07:30
Thanks for you help this was what I was looking for. | Written by 'Guest' on 2009-02-14 09:24:37
Excellent info presented in straight forward easy to read & understand way. Thanks so much. Love the links. I have bookmarked your site for future reference. | Pharma Rep
Written by 'Guest' on 2009-03-24 08:13:56
Exactly the information I wanted on the first click and presented in a clear and concise manner. Thank you! | Written by 'Guest' on 2009-04-13 17:54:41
Just clarifying the statement "you get an extra $xx per month". One doesn't actually get anything extra. This is money you have earned. | Written by 'Guest' on 2009-04-18 16:11:14
thanks so much, exactly what i was looking for | Extra monthly income
Written by 'Guest' on 2009-04-20 00:39:45
It is extra income in your take home pay. | Guest
Written by 'Guest' on 2009-05-16 10:51:44
Yes, it is strange to look at this as getting "extra $xx per month" when in fact it is just money that is no longer subject to this tax. Some may think that this is a "gift" from government, but in reality it is not, especially since these benefits have relatively low maximums. Nevertheless, a useful website...thanks. | Perfect!
Written by 'Guest' on 2009-06-16 16:58:54
Exactly the info I was looking for, and even a handy chart since I would have been too lazy to work it out on my own. Thanks!!! | First Time Was The Charm
Written by 'Guest' on 2009-06-30 06:15:00
Exactly the information I was looking for and it was my first "click". Well written, straightforward, no nonsense. The only bad thing I can say is that I STILL don't earn enough to make my maximum early! Haha! | What if my salary is $370,000?
Written by 'Guest' on 2009-07-22 17:51:31
How fast will I reach my maximum? | Very well done!
Written by 'Guest' on 2009-08-04 14:04:44
Exactly what I was looking for so I didn't have to do it myself. Thanks very much for sharing with us! | Two thumbs up!
Written by 'Guest' on 2009-08-09 10:19:43
Thanks | 5 months to reach max @ 100K!
Written by 'Guest' on 2009-11-19 19:21:12
No wonder the rich get richer and us poor middle class get poorer! |
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