Your first pay stub can be confusing. The amount you receive is usually lower than your hourly wage times your hours, because of standard deductions.
Gross pay and net pay
Gross pay is what you earned before deductions. Net pay is what is paid into your account after deductions.
Common deductions
- Income tax: federal and provincial tax, withheld by your employer
- Canada Pension Plan (CPP): contributions toward a retirement pension; in Quebec this is the Quebec Pension Plan (QPP)
- Employment Insurance (EI): premiums for a program that can provide temporary income if you lose your job; Quebec also has its own parental insurance plan
- Other deductions you agreed to, such as benefits, uniforms or accommodation, if they apply
Check your hours
Compare the hours on your stub with your own record, including overtime. If something looks wrong, ask your supervisor or payroll contact politely and early.
Keep your pay stubs
Save each pay stub. You may need them for renting a home, opening accounts or filing your tax return.
This guide is general information only. For questions about your own taxes, contact the Canada Revenue Agency or a qualified professional.