HOOPP deductions can look surprisingly large beside Canada Pension Plan (CPP), Employment Insurance (EI) and income tax on a paycheque. The useful number is not one flat percentage, though. Your Healthcare of Ontario Pension Plan (HOOPP) contribution rate changes once your annualized pensionable earnings cross the Year’s Maximum Pensionable Earnings (YMPE). In 2026, HOOPP members contribute 6.9% of annualized pensionable earnings up to the $74,600 YMPE and 9.2% above it. Your employer contributes $1.26 for every $1 you contribute. Part-time contributions use annualized earnings first, then are prorated to reflect the percentage of full-time hours you work.
- The 2026 HOOPP Contribution Rates
- How Much Your Employer Contributes to HOOPP
- How to Calculate Your HOOPP Contributions
- Part-Time HOOPP Contributions Work Differently
- HOOPP Contributions Are Separate From CPP Contributions
- Your HOOPP Contribution Is Not Your Pension Value
- How to Check Whether Your HOOPP Deduction Looks Right
- Other Questions About HOOPP Contributions
The 2026 HOOPP Contribution Rates
There are two member rates. In 2026, you pay 6.9% on annualized pensionable earnings up to the $74,600 YMPE and 9.2% on annualized pensionable earnings above that amount. HOOPP applies the higher percentage only to the portion above the threshold, not to your entire income.
| 2026 annualized pensionable earnings | Member contribution rate |
|---|---|
| Up to $74,600 | 6.9% |
| Above $74,600 | 9.2% |
The YMPE is a CPP figure that changes annually. That means the point where the higher HOOPP rate begins can also move from year to year. For context, the 2026 CPP earnings figures also set the Year’s Additional Maximum Pensionable Earnings (YAMPE) at $85,000, but HOOPP’s two contribution bands use the YMPE as their dividing point.
These percentages tell you what goes into the plan from your pay. They do not tell you how much retirement income you have earned. HOOPP is a defined benefit pension, so the calculation described in how your HOOPP pension is calculated uses a pension formula rather than simply returning your accumulated contributions.
How Much Your Employer Contributes to HOOPP
Your employer puts in more than you do. Under the 2026 HOOPP contribution structure, the employer contributes $1.26 for every $1 of member contributions.
That makes the employer portion easy to calculate after finding your own annual contribution:
Employer contribution = your HOOPP contribution × 1.26
For example, HOOPP’s 2026 full-time example uses an employee earning $85,000. Her annual member contributions total $6,104.20, while the employer puts in $7,691.29. Combined, $13,795.49 goes into HOOPP for that member during the year.
We think the employer amount is worth paying attention to because looking only at the deduction on your paycheque gives an incomplete picture of what is being contributed on your behalf. It also helps explain why comparing HOOPP with an individual savings account based only on your own deposits is misleading. The broader differences are covered in whether HOOPP is an RRSP.
How to Calculate Your HOOPP Contributions
Someone whose annualized pensionable earnings stay below the 2026 YMPE can calculate the basic annual member contribution by multiplying those earnings by 6.9%.
At $60,000 of annualized pensionable earnings in 2026:
$60,000 × 6.9% = $4,140
The corresponding employer contribution would be:
$4,140 × 1.26 = $5,216.40
Once earnings exceed $74,600, split the calculation into two pieces. HOOPP’s own 2026 example uses annualized pensionable earnings of $85,000. The member pays $5,147.40 on the first $74,600 and $956.80 on the remaining $10,400, producing the $6,104.20 annual total.
This split-rate calculation is one reason simply multiplying an entire salary above the YMPE by 9.2% produces the wrong answer.
Part-Time HOOPP Contributions Work Differently
Part-time members need one extra step because HOOPP bases the calculation on annualized pensionable earnings and then prorates the result according to the percentage of full-time hours worked.
HOOPP illustrates this with a 2026 employee whose full-time equivalent earnings are $85,000 but who works 60% of full-time hours. Her actual earnings are $51,000. HOOPP first calculates contributions using the $85,000 annualized amount, then multiplies them by 60%. Her member contribution comes to $3,662.52, while her employer contributes $4,614.78.
That treatment matters for someone moving between full-time and part-time hours. The reduction in actual contributions reflects the reduced hours rather than simply applying 6.9% to the smaller amount of cash received during the year.
Part-time work also affects how service accumulates toward your pension, which is a separate issue from the payroll deduction itself. The overall mechanics are covered in how HOOPP works as a pension plan rather than expanding the contribution calculation into a full pension calculation here.
HOOPP Contributions Are Separate From CPP Contributions
A HOOPP deduction does not replace CPP deductions. An Ontario employee can have both taken from the same pay because they fund separate pension arrangements.
For 2026, the employee CPP contribution rate on pensionable earnings within its first band is 5.95%, subject to the $3,500 basic exemption and the annual maximum. CPP also applies a second additional contribution of 4% to earnings between the $74,600 YMPE and the $85,000 YAMPE. The 2026 CPP contribution figures set a maximum employee contribution of $4,230.45 for the base and first additional portions, plus a maximum $416 second additional contribution.
HOOPP uses the YMPE within its own contribution structure partly because the plan operates alongside CPP. However, the percentages and calculations are separate. Seeing both deductions on the same paycheque is therefore normal.
Your HOOPP Contribution Is Not Your Pension Value
Adding your lifetime HOOPP deductions and employer contributions will not produce your eventual pension amount. The plan pools contributions and invests the assets to fund defined pension benefits. Your retirement pension instead depends on the plan’s benefit formula.
That becomes especially important when considering a job change. A member looking at whether a HOOPP pension can be cashed out should not assume the available pension value equals the contributions appearing on old pay statements.
The same principle applies to purchasing eligible past service. A HOOPP buyback can involve paying for qualifying service, but its purpose is to change pension service rather than build a conventional savings balance.
How to Check Whether Your HOOPP Deduction Looks Right
Start with your annualized pensionable earnings rather than blindly applying one rate to gross pay. Then identify how much falls below and above the 2026 $74,600 YMPE. Part-time members also need their percentage of full-time hours before reproducing the deduction accurately.
Your payroll department can explain which earnings were treated as pensionable and how a particular pay-period deduction was calculated. That is the sensible place to start when the number on a pay statement does not match your own calculation.
For retirement planning, switch from contribution figures to the actual pension estimate. Contributions tell you what is going into HOOPP now, while your projected benefit tells you what the plan may pay later. Once retirement begins, those benefits are paid according to the HOOPP pension payment dates, and eligible pensions may later be affected by HOOPP cost-of-living adjustments.
Other Questions About HOOPP Contributions
Is there a maximum annual HOOPP contribution?
HOOPP does not impose a contribution ceiling at the YMPE. The 2026 rate changes from 6.9% to 9.2% on annualized pensionable earnings above $74,600, so contributions can continue increasing as pensionable earnings rise.
Are HOOPP contribution rates the same as OMERS rates?
No. They are separate Ontario defined benefit pension plans with their own contribution structures. Someone comparing the deductions should use the actual rates for each plan rather than assuming public-sector pensions charge the same percentage. Our HOOPP versus OMERS comparison covers the broader differences.
Can you choose to contribute extra money to get a larger HOOPP pension?
Regular HOOPP contributions are determined by the plan’s contribution rules rather than by choosing a personal contribution percentage. Members who want additional retirement savings can therefore consider separate savings vehicles alongside the pension rather than treating HOOPP like an account where voluntary deposits directly purchase a larger balance.
Do HOOPP contribution rates change every year?
HOOPP sets member and employer contribution rates annually, so they can change even though the current rates have been stable for an extended period. The figures in this article are specifically the 2026 rates, and future paycheques should be checked against the rates applicable to that year.
