Your take-home pay will decline as Canada Pension Plan (CPP) and Employment Insurance (EI) premiums are on the rise.
The maximum CPP employee contribution will be $3,754.45—up from $3,499.80 in 2022. The maximum EI premium moves to $1,002.45 in 2023—an increase of about $50. The Canadian Federation of Independent Business says CPP and EI contribution will mean up to $305 less in annual take-home pay this year.
On the positive side—the annual limit for the Tax Free Savings Account (TFSA) is moving to $6,500, which is the first increase since 2019. As well, the Basic Personal amount exempt from income tax has increased to $15,000—up from $14,398 in 2022.
