On April 28th, 2026, the Minister of Finance and National Revenue, The Honourable François-Philippe Champagne, released the 2026 Spring Economic Update: Canada Strong for All.
The update contains a few measures that directly impact payroll and several initiatives that may affect employers and employees.
Canada Pension Plan (CPP) Contribution Rate Reduction
The government announced its intention to introduce legislative amendments to the Canada Pension Plan that would reduce the base CPP contribution rate from 9.9 per cent to 9.5 per cent (employee and employer contribution), effective January 1, 2027.
Payroll impact
- Employers will see lower statutory payroll costs beginning in 2027.
- Payroll systems will need rate table updates before the first payroll of 2027.
Employment Insurance Support for Seasonal Workers Extended to October 2028
The government announced its intention to extend temporary Employment Insurance rules for seasonal workers in 13 targeted economic regions until October 2028. Originally set to expire in October 2026, the support provides up to five additional weeks of EI regular benefits, for a maximum of 45 weeks, to eligible seasonal workers in sectors such as agriculture, fishing, forestry, and tourism.
New Apprenticeship Wage Subsidy & Grant
As part of the $6-billion skilled trades strategy:
- The Build Canada Apprenticeship Service will provide wage subsidies of up to $10,000 for a first-year apprentice’s salary.
- Apprentices may receive training grants of up to $16,000 (paid to the worker, not through payroll).
Wage subsidies do not change statutory payroll rules, but:
- Employers must ensure proper payroll tracking of subsidized wages.
- Subsidies may need to be reported separately for accounting and audit purposes.
- Payroll teams should coordinate closely with HR/Finance to ensure wages are processed normally, and subsidies are treated as employer funding, not employee income.