Do employers pay both CPP and QPP for the same worker?

No. A worker falls under one plan, not both. If they work in Quebec, the employer pays QPP. If they work anywhere else in Canada, the employer pays CPP. The two schemes do not overlap for a single employment.

Is there a maximum employer contribution each year?

Yes. Contributions apply only to earnings up to the annual pensionable earnings ceiling, which is CAD 74,600 for 2026 under CPP. Once a worker's earnings pass that ceiling, no further base contribution is due for the rest of the year, though a separate higher-earner tier can apply.

Why is the Quebec rate higher than the rest of Canada?

Quebec has always administered its own pension plan and sets its own contribution rate, which sits slightly above the federal CPP rate. For an employer, this means a Quebec hire carries a marginally higher statutory on-cost than an equivalent role in another province.

How does an employer of record handle CPP and QPP?

An employer of record registered in Canada withholds the employee share, adds the employer share, and remits both to the correct authority, the Canada Revenue Agency or Revenu Quebec, on schedule. That keeps a Canadian hire compliant without you registering locally.

Glossary

CPP / QPP (Canada)

CPP and QPP are Canada's mandatory public pension contributions: the Canada Pension Plan applies in every province except Quebec, whilst the Quebec Pension Plan is the provincially run equivalent, and both require matching employer and employee payments on earnings up to an annual ceiling.

Reviewed by Teamed's in-house employment-law team·Last updated 28 July 2026

Also known as: Canada Pension Plan, Quebec Pension Plan

What is CPP / QPP (Canada)?

CPP and QPP are the two public pension schemes that employers in Canada must pay into on behalf of their workers. The Canada Pension Plan, run by the federal government and collected by the Canada Revenue Agency, covers workers in every province and territory except Quebec. The Quebec Pension Plan is the parallel scheme for workers in Quebec, collected by Revenu Quebec under a separate rate.

Both plans work the same way. The employer and the employee each pay a set percentage of the worker's earnings, up to a yearly maximum known as the pensionable earnings ceiling. Earnings above that ceiling are not subject to the contribution.

Because Quebec sets its own rate, the employer cost of a Quebec hire differs slightly from an identical hire in Ontario or any other province. For a global employer, that provincial split is a routine part of running Canadian payroll correctly.

What is the difference between CPP and QPP?

The Canada Pension Plan covers workers everywhere in Canada except Quebec and is collected federally by the Canada Revenue Agency. The Quebec Pension Plan covers Quebec workers only and is collected provincially by Revenu Quebec. They fund comparable pensions, but Quebec sets its own contribution rate, which is why the employer cost is not identical.

A worker is covered by one plan, decided by where they work, so an employer never pays into both for the same person.

How much do employers contribute to CPP and QPP?

For 2026, the employer pays 5.95% of a worker's pensionable earnings into CPP, up to the yearly ceiling of CAD 74,600. In Quebec, the employer QPP rate is 6.30% on the same ceiling. Both figures include the base contribution plus the enhancement added under recent pension reforms.

Why does the CPP and QPP split matter for global employers?

Employer contributions are a direct cost of hiring, so the higher Quebec rate makes an identical role marginally more expensive to fill in Montreal than in Toronto. When you budget a Canadian hire or compare provinces, the plan that applies changes the true cost of employment.

Key facts

2026 employer CPP rate: 5.95% of pensionable earnings, up to a CAD 74,600 ceiling.Applies in every province except Quebec. Includes the base rate plus the CPP enhancement.Source: Canada Revenue Agency· verified 2026-07-28
2026 employer QPP rate: 6.30% of pensionable earnings, up to a CAD 74,600 ceiling.Quebec's parallel scheme, collected by Revenu Quebec, sits above the CPP rate.Source: Revenu Quebec· verified 2026-07-28

CPP vs QPP at a glance

	CPP	QPP
Applies to	All provinces except Quebec	Quebec only
Collected by	Canada Revenue Agency	Revenu Quebec
2026 employer rate	5.95%	6.30%
2026 earnings ceiling	CAD 74,600	CAD 74,600

Frequently asked questions

Do employers pay both CPP and QPP for the same worker?
No. A worker falls under one plan, not both. If they work in Quebec, the employer pays QPP. If they work anywhere else in Canada, the employer pays CPP. The two schemes do not overlap for a single employment.
Is there a maximum employer contribution each year?
Yes. Contributions apply only to earnings up to the annual pensionable earnings ceiling, which is CAD 74,600 for 2026 under CPP. Once a worker's earnings pass that ceiling, no further base contribution is due for the rest of the year, though a separate higher-earner tier can apply.
Why is the Quebec rate higher than the rest of Canada?
Quebec has always administered its own pension plan and sets its own contribution rate, which sits slightly above the federal CPP rate. For an employer, this means a Quebec hire carries a marginally higher statutory on-cost than an equivalent role in another province.
How does an employer of record handle CPP and QPP?
An employer of record registered in Canada withholds the employee share, adds the employer share, and remits both to the correct authority, the Canada Revenue Agency or Revenu Quebec, on schedule. That keeps a Canadian hire compliant without you registering locally.

Related terms

Note

This is general information, not legal advice. Statutory rules vary by country and change over time.

Glossary

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Last verified 2026-07-28