The short answer is no. Employees receive automatic enrollment in Employment Insurance (EI) and Canada Pension Plan (CPP) contributions deducted by their employer, while independent contractors must handle these obligations themselves if they choose to participate. As a contractor, you pay both the employee and employer portions of CPP (called contributions as a self-employed person), and you're generally not eligible for EI unless you opt into the program through a recent CRA expansion. Understanding this difference is crucial because it affects your retirement savings, income protection, and long-term financial planning. When you're employed, your employer automatically: Deducts EI premiums from your paycheque Deducts CPP contributions from your paycheque Matches your CPP contribution with an employer portion Provides you access to parental leave, sickness benefits, and job loss protection through EI As a contractor, you're responsible for: Calculating and paying your own CPP contributions on net self-employment income Opting into the self-employed EI program if you want coverage Managing your own retirement savings strategy If you earn self-employment income in Canada, this CRA rule may apply to you: you must contribute to CPP if your net self-employment income exceeds $3,500 in a tax year.
Yes, if your net self-employment income exceeds $3,500 in a year, you must contribute to CPP. You pay both the employee and employer portions combined (about 11.9% for 2026), though the employer portion is tax-deductible.
Starting in 2023, self-employed contractors can voluntarily opt into the self-employed EI program, which provides coverage for sickness, parental leave, and other benefits depending on your province. It costs about 1.58% of net self-employment income.
No, contractors don't automatically get paid maternity, parental, or sick leave. However, you can now opt into self-employed EI to cover some of these situations. Most contractors must plan and save for unpaid time off.
Most self-employed contractors are not covered by provincial workers' compensation programs. You may be able to enroll voluntarily in some provinces, but typically you'll need to purchase private disability insurance for income protection.
Contractors can contribute up to 18% of prior-year net self-employment income to an RRSP, contribute to a TFSA, or use the FHSA if eligible. Being disciplined about these contributions is essential since there's no employer match.