Seeing Canada Pension Plan (CPP) deductions on every paycheque can make CPP look optional, especially if you already save for retirement elsewhere. For most workers, it is not. You generally cannot ask an employer to stop CPP deductions simply because you would rather invest the money yourself. CPP contributions are mandatory for most people over 18 who work in Canada outside Quebec and earn more than the annual basic exemption. Employees and employers normally share the contributions, while self-employed workers generally pay both portions. Quebec has its own Quebec Pension Plan (QPP) instead of CPP.
When Do You Have to Pay CPP?
Most employment in Canada outside Quebec is considered pensionable employment. In 2026, workers generally contribute when they are over 18 and earn more than the $3,500 annual basic exemption. The CPP contribution requirements apply automatically when the employment and earnings meet the rules.
For employees, CPP is normally deducted directly from each paycheque, and the employer contributes an equal amount. Self-employed workers generally cover both the employee and employer portions themselves. The actual amount depends on your CPP pensionable earnings and the annual contribution limits rather than your entire income without restriction.
Having an RRSP, TFSA, workplace pension or other retirement savings does not let you opt out. CPP is a separate public pension program, so choosing to save independently does not replace a required CPP contribution.
Who Does Not Have to Contribute to CPP?
CPP is mandatory for most workers, but not everyone. Workers under 18 do not contribute, and CPP contributions stop at age 70 even if you continue working. Some employment is also excluded because it is not considered pensionable employment under CPP rules.
Quebec is another major exception. Employees working in Quebec generally contribute to the QPP instead, while Quebec residents with self-employment income are also generally covered by QPP rules. Someone whose work history includes both systems may eventually need to consider how CPP and QPP work together.
Receiving a CPP retirement pension does not automatically end your contribution requirement either. If you are working and receiving CPP between ages 60 and 64, CPP contributions remain mandatory on pensionable earnings. Those additional contributions can create Post-Retirement Benefits that increase your retirement income.
Can You Opt Out of CPP After 65?
There is a limited choice for people who are at least 65 but under 70. If you are already receiving a CPP or QPP retirement pension and continue working, you can elect to stop contributing to CPP.
Employees make the election using Form CPT30 and provide a copy to each employer while sending the original as required. Self-employed workers follow a different process through their income tax return. You cannot make this election before age 65, and contributions end at 70 regardless. The different situations are covered more closely under when you stop paying CPP.
Why Is CPP Mandatory?
CPP pools mandatory contributions to provide benefits based on a worker’s contribution record. Those contributions can build entitlement not only to a retirement pension but also to benefits such as disability, survivor and post-retirement benefits. Changing employers does not erase what you have already contributed.
Mandatory contributions also do not mean everyone receives the same pension. Your contribution history and earnings are among the factors that affect how much CPP you can receive. Someone who contributes more consistently during their working years can therefore have a very different CPP pension from someone with limited pensionable earnings.
Other Questions About Mandatory CPP Contributions
Can I tell my employer not to deduct CPP?
Generally, no. If your employment requires CPP contributions, your employer must make the applicable payroll deductions. The main age-based election becomes available from 65 to 69 for workers who are already receiving a CPP or QPP retirement pension.
Is CPP mandatory for part-time workers?
Part-time status alone does not exempt employment from CPP. What matters is whether the employment is pensionable and whether your earnings fall within the CPP contribution rules.
Do I still pay CPP after reaching the annual maximum?
No further CPP contributions are deducted once you reach the applicable annual maximum contribution for that year. The 2026 CPP contribution limits determine when that point is reached.
Is CPP mandatory after age 70?
No. CPP contributions stop at age 70 even if you continue working.
