Canada Pension Plan (CPP) contributions and employment insurance (EI) premiums will increase in 2023, meaning lower take-home pay for Canadian workers.
Employee and employer Pension Plan contribution rates will increase from 5.70% to 5.95 in 2023, the Canada Revenue Agency announced in November.
That means the maximum employee pension plan contribution will increase from $3,499 in 2022 to $3,754 in 2023.
In a separate notice, the federal government said the changes to employment insurance rates will result in workers paying a maximum annual EI premium of $1,002.45 in 2023, up from $952.74 in 2022.
The Canadian Federation of Independent Business says the CPP and EI contribution increases mean each Canadian worker will see up to $305 less in net annual income next year.