1. What is Net Salary?

Net salary (take-home pay) is the amount an employee receives after all deductions from gross salary, including taxes, CPP, and EI contributions.

2. How Does the Calculator Work?

The calculator uses the standard salary formula:

Where:

• Gross Salary — Total earnings before deductions
• Federal Tax — Income tax paid to federal government
• Provincial Tax — Income tax paid to provincial government
• CPP — Canada Pension Plan contributions
• EI — Employment Insurance premiums

3. Canadian Payroll Deductions

Details: Canadian employers must deduct federal/provincial taxes, CPP (5.70% in 2023), and EI (1.63% in 2023) from employees' paychecks.

4. Using the Calculator

Tips: Enter all amounts in Canadian dollars. For accurate results, use amounts from your pay stub or CRA tax documents.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and net salary?
A: Gross is earnings before deductions; net is take-home pay after all mandatory deductions.

Q2: Are CPP and EI contributions tax-deductible?
A: Yes, both are deductible when calculating taxable income.

Q3: How often are these deductions taken?
A: Typically with each pay period (bi-weekly, semi-monthly, etc.).

Q4: Do all provinces have the same tax rates?
A: No, provincial tax rates vary significantly across Canada.

Q5: Are there other common deductions?
A: Additional deductions may include union dues, health benefits, or pension contributions.