[Canada] Higher payroll deductions now in effect

Canadian workers’ take-home pay is set to decline as Canada Pension Plan (CPP) and Employment Insurance (EI) premiums rises take effect from January 1, CJWW reports.

The maximum CPP employee contribution will now be $3,754.45, up from $3,499.80 in 2022 and the maximum EI premium is $1,002.45 in 2023, an increase of about $50. 

According to the Canadian Federation of Independent Business, CPP and EI contribution increases will mean up to $305 less in annual take-home pay this year.

In more positive news, the annual limit for the Tax Free Savings Account (TFSA) has reportedly moved to $6,500, its first increase since 2019. In addition, the Basic Personal amount exempt from income tax has increased to $15,000, from $14,398 in 2022.

Canadian workers’ take-home pay is set to decline as Canada Pension Plan (CPP) and Employment Insurance (EI) premiums rises take effect from January 1, CJWW reports.

The maximum CPP employee contribution will now be $3,754.45, up from $3,499.80 in 2022 and the maximum EI premium is $1,002.45 in 2023, an increase of about $50. 

According to the Canadian Federation of Independent Business, CPP and EI contribution increases will mean up to $305 less in annual take-home pay this year.

In more positive news, the annual limit for the Tax Free Savings Account (TFSA) has reportedly moved to $6,500, its first increase since 2019. In addition, the Basic Personal amount exempt from income tax has increased to $15,000, from $14,398 in 2022.