An overview of the main statutory benefits
Canada Pension Plan (CPP)
Any employee working in pensionable employment will have pension contributions deducted from their pay by their employer and cannot elect to stop contributing to the CPP until they reach at least 65 years of age.
It’s the responsibility of the employer to calculate how much CPP to deduct, using the annual CPP contribution rates and maximums.
Employers must contribute an amount equal to the CPP deducted from the employee’s remuneration.
The maximum pensionable earnings will be provided each year by the CPP. Deductions are stopped once the contributions reach the maximum annual threshold.
CPP contribution rates: 2021
|Maximum annual pensionable earnings
|Basic exemption amount
||Maximum contributory earnings
|Employee and employer contribution rate (%)
||Maximum employee and employer contribution
Québec Pension Plan (QPP)
Québec employers deduct QPP contributions instead of CPP contributions. The contribution rates for QPP are higher than those for CPP.
If an employee cannot work for medical reasons, EI sickness benefits can provide up to 15 weeks of financial assistance of a maximum of $595 per week.
Maternity & paternity
A pregnant employee is entitled to up to 17 weeks (18 weeks in Québec) of maternity leave. This leave can be taken at any time during the period that:
An employee must provide their employer with a certificate from a healthcare practitioner confirming they are pregnant. They must also give notice at least four weeks (three weeks’ notice in Québec) before starting the leave advising the length of leave to be taken.
Employees are also entitled to up to 63 weeks of unpaid parental leave. Employees in Québec are entitled to up to 65 weeks of unpaid parental leave after the child’s birth. Furthermore, employees in Québec are entitled to unpaid paternity leave upon the birth of the child equal to 5 consecutive weeks.
Maternity leave and parental leave are addressed under employment standards legislation in each province. EI is available for employees who are pregnant, have recently given birth, are adopting a child or are caring for a newborn. Because EI benefits provide only a portion of an employee’s regular wages, many employers offer ‘top-up’ benefits to employees for some portion of their leave.
Registered Retirement Savings Plan (RRSP)
TopSource Worldwide offers an RRSP scheme through Manulife. It should be noted that contributions are entirely voluntary both on behalf of the employer and employee. The employer can determine whether the employee will be required to match any employer contributions. We can work with our clients on this during the onboarding phase.
TopSource Worldwide can offer an enhanced healthcare policy for employees through Manulife which provides for extended healthcare, dental and also includes life assurance, accidental death & dismemberment and long-term disability.