A pay stub (or pay statement) is a document your employer gives you showing your gross pay, all deductions, and your net pay for a specific pay period. It breaks down exactly where your money goes before you receive it, including income tax withholding, Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums, and any voluntary deductions like benefits or RRSP contributions. Understanding your pay stub is essential because it forms the basis of your tax filing and helps you catch errors before they affect your tax return. Every Canadian pay stub contains standard sections that tell you a complete story about your earnings and deductions for that pay period. Gross Pay Section - Your hourly rate or salary amount - Hours worked (if paid hourly) or regular salary - Overtime, bonuses, or commission if applicable - Gross pay before any deductions Mandatory Deductions - Federal and provincial income tax withholding - Canada Pension Plan (CPP) contributions (both your portion and employer match) - Employment Insurance (EI) premiums - These amounts are sent directly to the CRA by your employer Voluntary Deductions - Group benefits premiums (health, dental, vision) - RRSP contributions (if your employer has a group plan) -
Gross pay is your total earnings before any deductions. Net pay is what you actually receive after income tax, CPP, EI, and other deductions are removed. Your pay stub shows both amounts so you can see exactly what was withheld.
CPP and EI are separate programs. CPP provides retirement and disability benefits, while EI provides temporary income support if you lose your job. Both are mandatory for employees and are deducted from your pay along with income tax.
Your employer can only change mandatory deductions (income tax, CPP, EI) if your income or tax situation changes. Voluntary deductions like benefits or RRSP contributions require your written authorization. Contact your payroll department if you see unexpected changes.
Contact your payroll or HR department immediately with details of the error. They can investigate and issue a corrected pay stub if needed. It's important to catch errors early so they don't carry through to your T4 and tax return.
You can estimate your tax withholding using the CRA's online tax calculator or a tool like our [Canadian Income Tax Calculator](/tools/tax-calculator). If you're consistently getting large refunds or owing money, you may want to update your TD1 form with your employer to adjust withholding.