T4 Box 16 — Employee's CPP contributions
The total CPP (Canada Pension Plan) contributions deducted from your pay during the year — base plus enhancement rate applied to pensionable earnings between the basic exemption and the YMPE.
At a glance — Box 16
- Box name
- Employee's CPP contributions
- T1 line
- Line 30800 / Line 22215 — CPP contributions on employment income
- Check against
- Sum of CPP amounts on your pay stubs. See the year-notes block below for the current year's maximum CPP contribution.
What Box 16 means
Box 16 shows your CPP contributions for the year. The rate is applied to pensionable earnings between the basic $3,500 exemption (§ITA 20(1)(j), not indexed) and the Year's Maximum Pensionable Earnings (YMPE, indexed annually by CRA to the national average industrial wage).
These contributions fund the Canada Pension Plan retirement, disability and survivor benefits. Quebec residents do not see Box 16 — they contribute to QPP (Box 17) instead.
Tax return implications
- Claimable as a non-refundable tax credit at Line 30800 (employee portion only, base CPP of 4.95%).
- Since the 2019 CPP enhancement, the 1.00 percentage-point enhancement portion (taking total rate to 5.95%) is deductible at Line 22215 instead of credited.
- Contributes to your future CPP retirement benefit — the more years at max, the higher your future pension.
For 2025 returns (file T1 by April 30, 2026 — self-employed June 15)
- Max CPP contribution (2025)
- $4,034.10
- 5.95% × (YMPE $71,300 − basic exemption $3,500). Both employee and employer pay this amount.
- YMPE / YAMPE (2025)
- $71,300 / $81,200
- First-ceiling YMPE $71,300 (CPP base + enhancement); second-ceiling YAMPE $81,200 (CPP2). Basic exemption $3,500 (§ITA 20(1)(j)).
Values sourced from central CPP / EI config at build time — update automatically on FY rollover.
FAQ
Why is Box 16 less than the CPP rate times my salary?
CPP applies only to pensionable earnings between $3,500 (basic exemption, §ITA 20(1)(j)) and the YMPE. Below $3,500 and above the YMPE, no CPP is deducted. Additionally, Quebec workers contribute to QPP (Box 17), not CPP.
What is CPP2? Does it appear in Box 16?
CPP2 is the second-tier contribution on earnings between the YMPE and the YAMPE (from 2024 onward). It appears separately in Box 16A, not Box 16.
Related T4 boxes
Box 16A — Employee's second CPP contributions (CPP2)
CPP2 contributions on pensionable earnings between the YMPE and the YAMPE — introduced in 2024 for higher earners, at a flat rate specified in the CRA CPP enhancement schedule.
Box 17 — Employee's QPP contributions
Quebec Pension Plan contributions — the QPP equivalent of CPP Box 16, shown on T4 slips for Quebec residents.
Box 14 — Employment income
Your total gross employment income for the year before any deductions — salary, wages, bonuses, commissions, taxable benefits and most other pay.
Box 18 — Employee's EI premiums
Employment Insurance premiums withheld from your pay — applied at the CEIC-set annual rate on insurable earnings up to the annual Maximum Insurable Earnings (MIE).
Filing your return? Use the payroll deductions calculator to verify the amounts on your T4 match expected CPP, EI and income tax withholdings, and the income tax calculator to estimate your refund or balance owing.
Sources
T4 box definitions from CRA T4 employer guide. Rates and thresholds current for 2025; file your 2025 T1 by April 30, 2026 (self-employed June 15).