Pay cheque deductions

What you get to keep

For most jobs in Canada, your employer will remove some money from your pay cheque. This is called a deduction. Pay cheque deductions can reduce your pay by as much as 25 to 35 percent. The money from these deductions usually pays for:

• Income taxes
• Canada Pension Plan or Quebec Pension Plan
• Employment Insurance
• Union dues (if you belong to a union)
• Payments to a retirement or pension plan (if you belong to a plan or choose to make contributions through your employer)
• Any other deductions you and your employer agree to in writing

Your pay cheque will show how much money has been deducted for each item. The total amount of your pay cheque before deductions is your gross income. The amount you get to keep is your net income or take-home pay.

Learn more about:

• Sales tax
• Household expenses