Your first paycheque explained: what gets deducted, how to read the stub and when the money arrives
First job basics

Your first paycheque explained: what gets deducted, how to read the stub and when the money arrives

June 27, 2026

Your first paycheque will be smaller than hours times wage, and that is normal. Three deductions come off most pay in Canada: Canada Pension Plan (CPP), Employment Insurance (EI) and income tax. CPP does not start until you are 18, EI applies at any age, and income tax depends on your TD1 form. Here is what each line on the stub means.

Gross pay versus net pay

Gross pay is everything you earned in the pay period before anything comes off: regular hours, overtime, and any vacation pay added to each cheque. Net pay is what lands in your account. The gap is the deductions, and your pay stub has to show each one.

Ontario's Employment Standards Act, for example, says every wage statement must show the pay period, your wage rate, the gross amount, the amount and purpose of each deduction, and the net amount. Other provinces have similar rules. If your stub does not break it down, ask for one that does.

CPP: the deduction that starts at 18

The Canada Pension Plan is a retirement plan you pay into through work. Employers start deducting CPP in the first pay dated in the month after you turn 18. At 16 or 17 you should see no CPP line at all.

Once you are 18, the 2026 base CPP rate is 5.95 percent of your pay above a basic exemption of $3,500 a year, and your employer matches every dollar. A second tier called CPP2 only applies to earnings above $74,600 in the year, which almost no student reaches.

Quebec runs its own plan, the Quebec Pension Plan (QPP), and Quebec workers also pay into the Quebec Parental Insurance Plan (QPIP). If you work in Quebec, check the current rates with Revenu Quebec.

EI: deducted at any age

Employment Insurance covers you if you lose a job through no fault of your own. Unlike CPP, there is no age floor: a 15 year old bagging groceries pays EI.

For 2026 the employee EI rate is $1.63 per $100 of insurable earnings outside Quebec, up to maximum insurable earnings of $68,900 for the year. In Quebec the rate is $1.30 per $100 because QPIP covers parental benefits separately. On a $400 cheque outside Quebec, EI is about $6.52.

Income tax and the TD1 form

What the TD1 does

The TD1, Personal Tax Credits Return, is the form your employer hands you on day one, in a federal version and a provincial one (TD1ON, TD1AB and so on). Line 1 is the basic personal amount, the slice of income everyone earns tax free. For 2026 the federal figure is $16,452 for most people; each province sets its own.

Payroll uses your TD1 total to pick a claim code, which sets how much tax comes off each cheque. If you earn less than the basic amount over the year, any tax deducted comes back as a refund when you file.

Two more things. If you have two jobs, claim the basic amount on only one TD1. And if your total income for the year will stay under the basic amount, page 2 of the TD1 has a box you can tick so no income tax is deducted; CPP and EI still come off.

How to check a pay stub in two minutes

  1. Multiply hours worked by your wage and compare to gross pay, checking hours against your own record of shifts.
  2. Look for CPP. Under 18, the line should be zero or absent.
  3. Check EI at 1.63 percent of gross (1.30 in Quebec).
  4. If income tax seems high for a part time cheque, ask whether your TD1 was processed.
  5. Scan for anything else. Uniform charges and till shortages are restricted or banned in most provinces. Ask what any unfamiliar deduction is for.

Keep every stub. You will need them if a T4 is wrong or you ever file a complaint.

When do you actually get paid?

Every province requires a regular pay period and pay day. British Columbia requires pay at least twice a month and within 8 days after the period ends; Ontario requires a set pay day with all earned wages paid by then. Biweekly is the most common schedule in restaurants and retail.

The reason your first cheque feels late is lag. If a pay period ends on a Saturday and pay day is the following Friday, your first week's hours may not arrive for nearly three weeks. Ask on day one when the period closes and when pay day is, and bring a direct deposit form from your bank app.

Your Social Insurance Number has to be on file before payroll can run; see how to get a SIN as a teenager if you do not have one yet.

What happens at tax time

By the end of February, every employer you worked for in the previous year must give you a T4 slip totalling your gross pay, CPP, EI and income tax. You use it to file a return, usually due April 30. Most young workers get a refund because payroll assumed a full year of earnings, so file even if you earned very little.

Browse live youth jobs on YouthBoard (free, wages shown on every listing).

Seeing the wage up front makes take home pay easier to estimate. If you are still applying, the free Resume Builder, our guide to getting a first job with no experience and the Campus Atlas are the places to start.

Frequently asked questions

Why is my first paycheque less than I expected?

Deductions and timing. EI and income tax come off every cheque, and CPP joins them once you are 18. Your first cheque also often covers only part of a pay period because you started mid-cycle. Check hours times wage first, then EI, then the tax line against your TD1.

Do I pay CPP if I am under 18?

No. Employers start deducting CPP in the first pay dated in the month after you turn 18, so before that there should be no CPP line on your stub. EI and income tax can still apply at 16 or 17. If CPP is deducted early, ask payroll for a correction.

What is a TD1 form and do I have to fill it out?

The TD1 is the Personal Tax Credits Return your employer uses to set how much income tax to deduct. Most first job workers claim the basic personal amount on line 1, which for 2026 is $16,452 federally, sign it and hand it back. It takes two minutes.

How often do employers have to pay you in Canada?

Every province requires a regular, predictable pay day. British Columbia requires pay at least twice a month and within 8 days of the end of the pay period. Ontario requires a set pay day with all earned wages paid by then. Biweekly is the most common schedule in retail and food service.

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Disclaimer

This article is general information for young job seekers, not legal, financial or employment advice. Minimum wages, minimum working ages, hours limits and program rules change, often on April 1 or October 1, and they differ by province and territory. Always confirm the current rules with your provincial or territorial government, the employment standards office, or the relevant federal department before relying on them. YouthBoard makes every effort to keep articles accurate, but they may contain errors or be out of date, and we accept no liability for any loss or decision made based on this content. If you spot something wrong, tell us and we will fix it.