OMERS does not apply one contribution percentage to your entire salary. Your rate depends on your normal retirement age (NRA), and your contributory earnings are split at the Year’s Maximum Pensionable Earnings (YMPE).
For 2026, NRA 65 members contribute 9.0% of contributory earnings up to the $74,600 YMPE and 14.6% above it. NRA 60 members pay 9.2% up to the YMPE and 15.8% above it. Your OMERS employer contributes an equal amount.
OMERS Contribution Rates for 2026
The 2026 OMERS contribution rates are:
| Member type | Up to the 2026 YMPE | Above the 2026 YMPE |
|---|---|---|
| NRA 65 | 9.0% | 14.6% |
| NRA 60 | 9.2% | 15.8% |
The 2026 YMPE is $74,600. That threshold is also used by the Canada Pension Plan and changes annually.
Most OMERS members have an NRA of 65. NRA 60 applies to certain police officers, firefighters and paramedics where their employer provides that retirement provision. The rate difference matters because two employees earning the same amount can have different OMERS deductions when they belong to different NRA groups.
These deductions help fund the broader OMERS defined benefit pension. They should not be treated as deposits into an individual retirement account because the amount of pension you ultimately receive is determined separately.
How the YMPE Affects Your OMERS Contributions
The higher OMERS percentage applies only to contributory earnings above the YMPE, not to your entire salary once you cross the threshold.
For example, an NRA 65 member with $80,000 of contributory earnings in 2026 has $74,600 subject to the 9.0% rate and the remaining $5,400 subject to the 14.6% rate. Using the annual figures purely to illustrate the split gives:
$74,600 × 9.0% = $6,714
$5,400 × 14.6% = $788.40
That produces $7,502.40 before considering how the actual payroll deductions are calculated throughout the year.
OMERS calculates required contributions on a per-pay-period basis. The applicable YMPE amount is therefore allocated according to the payroll cycle rather than waiting until your cumulative annual earnings reach $74,600.
For someone trying to reconcile a paycheque, that payroll detail is more useful than simply multiplying an annual salary by one percentage. It explains why an employee whose earnings exceed the YMPE can see both contribution rates reflected during the year.
Your Employer Pays the Same Amount You Do
OMERS employers match required member contributions dollar for dollar. A member contribution of $250 for a pay period therefore requires another $250 from the employer. The OMERS employer contribution rules confirm that both sides contribute equally, with investment earnings from the OMERS Fund funding the remaining portion of pension benefits.
Your employer’s contribution does not increase a personal OMERS balance belonging to you. OMERS is a defined benefit arrangement, so retirement income follows the plan’s benefit formula. The separate OMERS pension calculation uses factors such as credited service and best-five earnings rather than simply returning everything contributed by you and your employer.
What Earnings Are Subject to OMERS Contributions?
OMERS contributions apply to contributory earnings. Regular salary and wages are included, along with certain other recurring forms of compensation that meet the plan’s requirements. Overtime, lump-sum severance payments and one-time bonuses such as signing or retention bonuses are excluded.
This matters because gross employment income and OMERS contributory earnings can be different. Someone who earns substantial overtime, for example, should not assume the OMERS deduction can be calculated from the total income appearing on every pay statement.
Your required OMERS contributions also reduce taxable income at source. The tax treatment of the eventual retirement payments is a separate issue covered under whether an OMERS pension is taxable.
OMERS Contribution Rates Will Change in 2027
The 2026 percentages remain in effect through December 31, 2026. New rates have already been approved for January 1, 2027.
| Member type | Up to the applicable 2027 YMPE | Above the applicable 2027 YMPE |
|---|---|---|
| NRA 65 | 8.6% | 15.7% |
| NRA 60 | 9.6% | 16.7% |
For NRA 65 members, the below-YMPE rate falls from 9.0% to 8.6%, while the above-YMPE rate rises from 14.6% to 15.7%. Both rates rise for NRA 60 members. Employer contributions will continue to equal member contributions.
The approved 2027 OMERS contribution changes do not change the formula used to calculate OMERS defined benefit pensions. The 2027 YMPE had not yet been published as of September 18, 2026, so the 2026 figure of $74,600 should not be used as the 2027 threshold.
For retirement planning, the contribution percentage tells you what the pension costs while you are working. It does not tell you the size of the eventual benefit. Purchased service through an OMERS buyback can also involve additional pension contributions outside your ordinary payroll deductions.
Questions About OMERS Contribution Rates
Do OMERS contribution rates eventually drop to zero after 35 years?
Not for members who had not already reached the former 35-year credited-service cap before January 1, 2021. OMERS removed that cap for those members, allowing them to continue contributing and accruing credited service beyond 35 years. Members who had already reached the cap before January 1, 2021 remain subject to it.
Can your OMERS contribution amount change even if your salary stays the same?
It can. OMERS contribution rates can be adjusted, and the YMPE changes annually. Either change can alter the amount deducted even when your contributory earnings remain unchanged. The next confirmed rate change takes effect in 2027.
Are OMERS contributions the same as CPP contributions?
They are separate payroll deductions. OMERS contributions fund your workplace pension, while CPP contributions fund benefits under the Canada Pension Plan. The interaction at retirement is explained separately under OMERS and CPP. The federal 2026 CPP contribution rules use the same $74,600 YMPE but have their own contribution rates and limits.
