CPP & EI Calculator
Canada Pension Plan & Employment Insurance

The Canada Pension Plan is administered by Employment and Social Development Canada (ESDC) and Service Canada. Almost every Canadian who works outside Quebec and earns more than $3,500 per year must contribute. Quebec has its own equivalent plan — the Quebec Pension Plan (QPP) — which provides similar benefits under provincial administration.

CPP contributions are mandatory during your working years — you cannot opt out. The contributions fund a diversified investment portfolio managed by the CPP Investments board, which had assets of over $590 billion as of 2024. The plan is designed to replace approximately 33% of your pre-retirement income (up from 25% before the CPP enhancement began in 2019), assuming you contributed at or above the YMPE for your career.

The CPP retirement pension is the most commonly received CPP benefit, but the plan also covers disability (CPP-D), survivor pensions for spouses of deceased contributors, children's benefits, and a one-time death benefit. This Canada pension plan calculator focuses on the retirement pension — use Service Canada's My Account for disability and survivor estimates.

CPP Enhancement — CPP2

Since 2019, the federal government has been gradually enhancing the CPP. The first phase ran from 2019 to 2023, increasing the income replacement rate from 25% to 33% and raising the contribution rate from 4.95% to 5.95%. A second enhancement phase began in 2024, introducing CPP2 — an additional tier of contributions and benefits on earnings between the Year's Maximum Pensionable Earnings ($68,500) and a new Year's Additional Maximum Pensionable Earnings ($73,200). CPP2 contributions are 4% on this band, building toward additional future benefits.

How Your CPP Amount Is Calculated

The CPP retirement pension is based on three factors: how long you contributed, how much you earned relative to the YMPE, and what age you start receiving it. Service Canada uses your best 39 years of earnings (after excluding up to 8 low-income or zero-income years under the "dropout provisions") to calculate your average earnings. Dropout provisions also apply for periods of disability, low income while raising children under 7, and years after age 65 if you continue working.

CPP vs. 65 vs. 70 — When Should You Take CPP?

One of the most important and personal retirement decisions Canadians face is when to take CPP. The standard age is 65, but you can start as early as 60 (with a permanent reduction) or as late as 70 (with a permanent increase). The decision hinges on health, other income sources, longevity expectations, and tax planning.

Taking CPP early at 60: Your pension is permanently reduced by 0.6% for each month before 65 — a maximum reduction of 36% at age 60. You receive 36% less per month, for more months. If you need income and have no other sources, or have health concerns that reduce life expectancy, taking it early may be advantageous.

Taking CPP at 65: The standard option — no adjustment. Your pension reflects your contribution history directly.

Delaying CPP to 70: Your pension increases by 0.7% for each month after 65 — a maximum increase of 42% at age 70. You receive 42% more per month, for fewer months. If you are healthy, have other income sources to bridge the gap, and expect to live past 75–76, delaying is typically the mathematically superior choice. The break-even point against taking at 65 is approximately age 74–76, depending on assumptions.

The CPP benefit calculator tab above — specifically the "Age Comparison" sub-tab — shows your exact monthly pension at each age from 60 to 70 and calculates the break-even age against taking at 65.

CPP While Still Working

Canadians between 60 and 70 who are receiving CPP and still working can contribute to the Post-Retirement Benefit (PRB). Each year of contributions builds additional PRB amounts that are added to your annual pension. You can stop contributing to CPP after age 65 by filing a CPT30 form with your employer. Under 65, contributions are mandatory even if you are already receiving CPP.

CPP Payment Dates 2024

CPP retirement pensions are paid on the last banking day of each month. Key 2024 payment dates:

CPP Disability Benefit

The CPP Disability benefit pays $1,606.78/month (2024 maximum) to contributors who have a severe and prolonged mental or physical disability. To qualify, you must have contributed to CPP in at least 4 of the last 6 years (or 3 of the last 6 years if you have 25+ years of contributions). The benefit automatically converts to a CPP retirement pension at age 65.

Children's Benefit and Survivor Pension

Dependent children of CPP disability recipients or deceased CPP contributors can receive a monthly flat-rate benefit of $294.12/month (2024). The surviving spouse or common-law partner of a deceased contributor may receive a survivor's pension of up to $818.76/month at age 65+, or a lower amount under 65. A one-time death benefit of up to $2,500 is paid to the estate.

Unlike CPP, Canada old age pension (OAS) does not depend on employment history or contributions. It is funded from general government revenues and is based primarily on how long you have lived in Canada after age 18. To receive the full OAS pension, you must have lived in Canada for at least 40 years after age 18. Partial pensions (1/40th for each year of residence) are available with a minimum of 10 years of Canadian residence.

The maximum OAS pension in 2024 is $713.34/month for ages 65 to 74, and $784.67/month for those 75 and older — a 10% permanent increase that was introduced in 2022 for Canadians 75+. OAS amounts are indexed to inflation quarterly.

You can defer OAS beyond 65 by up to 5 years (to age 70), receiving an additional 0.6% per month deferred — a maximum 36% increase at age 70. Unlike CPP, you cannot take OAS before 65.

The OAS Clawback (Recovery Tax)

Higher-income retirees may have part or all of their OAS clawed back through the OAS Recovery Tax. In 2024, the clawback begins when net income exceeds $90,997. For each dollar above this threshold, 15 cents of OAS is recovered. The full OAS pension is eliminated at approximately $148,000 in income (for those receiving the full pension at 65).

Tax planning strategies to minimize the OAS clawback include income splitting with a spouse, RRSP-to-RRIF withdrawals timed to lower-income years, TFSA withdrawals (which do not count as income), and deferring capital gains realizations.

Guaranteed Income Supplement (GIS)

The GIS is a non-taxable monthly benefit paid to low-income OAS recipients who live in Canada. In 2024, the maximum GIS for a single person is approximately $1,065.47/month (combined with OAS, the maximum for a single low-income senior is over $1,778/month). GIS is income-tested — you must reapply each year and it is based on the previous year's income tax return.

Many eligible seniors do not receive GIS because they either don't apply or don't file a tax return. Service Canada encourages all seniors to file a tax return even with zero income to ensure automatic GIS eligibility assessment.

The Allowance Program

The Allowance is a benefit for low-income Canadians aged 60–64 whose spouse or common-law partner receives OAS and GIS. The Allowance for the Survivor is a similar benefit for those aged 60–64 whose spouse or partner has died. These programs bridge the income gap between a partner's retirement at 65 and the younger partner's own OAS eligibility at 65.

How to Apply for OAS

Many Canadians are automatically enrolled in OAS at 65 — Service Canada will send a notification letter if you are automatically enrolled. If you are not automatically enrolled (typically those without a long Canadian tax filing history), you must apply through My Service Canada Account or by mailing Form ISP3550. Apply 6 months before you want your pension to start. If you want to defer past 65, you must actively inform Service Canada that you are deferring.

How Much EI Will I Get?

Your EI benefit is calculated as 55% of your average insurable weekly earnings, up to the maximum insurable amount of $63,200 in 2024. This produces a maximum weekly benefit of $668.00/week. Low-income claimants with children (family net income under $25,921 and a Family Supplement) may receive up to 80% replacement.

The average weekly earnings used are calculated from the best 14 to 22 weeks of earnings in the qualifying period (52 weeks or since the last claim), depending on your regional unemployment rate. Higher-unemployment regions use fewer best weeks, which tends to produce higher weekly benefit amounts for workers with variable earnings.

EI Waiting Period

There is a mandatory 1-week waiting period at the beginning of every EI claim for which no benefits are paid. This applies to regular (job loss), sickness, and most special benefits. It functions as a deductible — you are responsible for your own income during the first week. Some employer severance packages and vacation pay can also delay when EI benefits begin if they cover the same period.

EI Benefit Duration

How long you receive EI benefits depends on two factors: the number of insurable hours accumulated in the qualifying period, and the regional unemployment rate where you live. Higher-unemployment regions require fewer hours to qualify and offer more weeks of benefits (up to 45 weeks). Lower-unemployment areas like Toronto and Calgary require 700 hours to qualify and provide as few as 14 weeks. The maximum duration for regular EI is 45 weeks.

EI Special Benefits

Beyond regular job-loss benefits, EI covers several special benefit categories:

Sickness Benefits: Up to 15 weeks at 55% of earnings for those unable to work due to illness, injury, or quarantine. A medical certificate is required.

Maternity Benefits: Up to 15 weeks for the birth mother or surrogate, starting up to 12 weeks before the expected birth date.

Parental Benefits: Either Standard (up to 40 weeks at 55% replacement, shared between parents, up to 35 weeks per parent) or Extended (up to 69 weeks at 33% replacement, up to 61 weeks per parent). Cannot be combined with the other option.

Compassionate Care Benefits: Up to 26 weeks for those caring for a gravely ill family member at significant risk of dying.

Family Caregiver Benefits: Up to 35 weeks for those caring for a critically ill or injured family member (adult or child).

Quebec QPIP vs. EI

Quebec residents pay a lower EI rate (1.29% vs 1.66%) because Quebec operates the Quebec Parental Insurance Plan (QPIP) separately. QPIP provides more generous parental benefits than federal EI: a higher replacement rate (70–75% vs 55%), no waiting period for maternity/paternity, and paternity benefits exclusively for fathers/second parents. Quebec employees and employers pay both the reduced EI premium and the QPIP premium.

Applying for EI

Apply online at canada.ca as soon as you stop working — do not wait for your Record of Employment (ROE) from your employer. Service Canada can access your ROE electronically. Apply within 4 weeks of your last day of work; late applications may result in a delay or loss of benefits. You will need your SIN, banking information, employer contact details, and the dates and reason for separation.