Understand Your First Paycheque
Learn why deposited pay may be lower than the hours you calculated.
Hourly wage multiplied by hours does not always equal the amount deposited. A pay stub separates gross pay, deductions and net pay.
Gross pay
Gross pay is earnings before deductions and may include wages, overtime, vacation pay or bonuses.
Common deductions
Possible deductions include income tax, CPP or QPP, Employment Insurance, benefits and other authorized deductions.
Amounts depend on income, location, payroll period, age and employee information. There is no universal percentage, and this site does not estimate one for you.
Age matters for CPP. Contributions generally begin the month after an employee turns 18, so a younger worker may see no CPP line at all. Workers in Quebec contribute to the QPP under its own rules. Confirm your own situation with the CRA or, in Quebec, Revenu Quebec.
Net pay
Net pay is the amount remaining after deductions.
Review your hours, wage, gross pay, deductions and net pay.
Gross pay: $540 · Deductions: $58 · Net pay: $482. This is an example, not a universal tax calculation.
Try this
- 1Open the Paycheque Decoder tool.
- 2Enter each deduction shown on your own pay stub.
- 3Review the net pay and percentage removed.
3 questions
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Official sources
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