Reminder: Change in Net Pay Beginning in January
November 10, 2020 - Defence Stories
Updated: December 31, 2020
Starting in January 2021, there may be changes to the net pay on your pay cheque.
Each calendar year, Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) contributions and Employment insurance (EI) premiums must be deducted from earnings until a maximum level is achieved. Depending on your earnings, you may reach the maximum level required sometime during the year. When this happens, you will notice that CPP/QPP deductions are no longer being withheld, resulting in a slightly higher net pay.
Beginning in January, CPP/QPP and EI deductions start again, so your net pay may be reduced by this contribution amount.
For more information on change in net pay, visit PSPC’s How public service pay works page, view PSPC’s visual aids (link accessible only on the Government of Canada network) or contact HR Connect RH (link accessible only on the National Defence network) (1-833-747-6363).
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