As we prepare for the 2026 payroll year, there are several legislated rate changes that may impact your net income, beginning the first pay date in 2026. Below is a summary of what you can expect.

Employment Insurance (EI)

  • The maximum insurable earnings will rise to $68,900 (from $65,700 in 2025)
    • The maximum annual employee contribution will be $1,123.07 (from $1,077.48 in 2025)

Canada Pension Plan (CPP/CPP2)

CPP

  • Maximum pensionable earnings: $74,600.00
  • Annual basic exemption: $3,500.00
  • Contributory earnings: $71,100.00
  • Contribution rate: 5.95%
  • Employee-employer maximum contribution: $4,230.45

CPP2

  • Year’s Additional Maximum Pensionable Earnings: $85,000.00
  • Basic Exemption: N/A
  • Contributory Earnings: $10,400.00
  • Contribution Rate: 4.00%
  • Maximum Contribution: $416.00

Reminder: The enhanced CPP contributions give you a tax break at source. Once your CPP2 deductions stop after reaching the yearly maximum, that tax break ends, and you may see a slight increase in your income tax deductions.

Income Tax Changes

The Federal Basic Personal Amount (BPA) for 2026 is a maximum of $16,452, the amount of income an individual can earn without paying any federal tax.

Alberta has a new tax bracket structure for 2026, which includes a new 8% rate on the first $60,000 of income, with all thresholds indexed to inflation.

For the 2026 tax year, the Alberta Basic Personal amount (BPA) is $22,769.

Local Authorities Pension Plan (LAPP)

2026 contribution rates will be temporarily reduced by about one percent on earnings below and above the Years Maximum Pensionable Earnings (YMPE).

  • Member rate up to YMPE 6.52% (2025 was 7.45%)
  • Member rate over YMPE 9.32% (2025 was 10.65%)

Payroll Calendar

The 2026 Payroll Calendar can be found on myPORTAL>Departments>Human Resources>Payroll Services

If you have questions about how these changes may affect your pay in 2026, please contact biweeklypay@macewan.ca.

From Human Resources