Your Pay Statement

On your pay statement you will notice that there is a difference between what you make and your actual take-home pay. Your pay is broken down into a number of components:

Here is an example of a typical pay statement and what each components means:

Sample pay statement

Gross Earnings & Total Earnings

Gross Earnings

Your earnings, including regular pay (i.e., your base salary or your hourly rate times the number of hours worked in the pay period); overtime pay; and vacation pay.

Total Earnings

The total of all of your gross earnings before legislated and other deductions are taken.

Sample pay statement's earnings

Legislated Deductions

An employer has a legal obligation to withhold statutory deductions, which are: Canada Pension Plan contributions (CPP Employee Contribution), Employment Insurance premiums (EI Employee Premiums) and federal and provincial income tax (Income Tax/Regular). As provincial tax is collected as part of the federal income tax deduction you will see only one line, i.e. Income Tax/Regular, on your pay statement.

Total Legislated Deductions

The total of all of your legislated deductions to be deduction from your pay.

Sample pay statement's deductionss

Other Payments / Deductions

The legislated deductions are an employer’s first priority. You may also have legal deductions (e.g. Garnishments and family support deductions); company compulsory deductions (e.g., union dues), your portion of benefit plan premiums and voluntary deductions (e.g., Canada Savings Bonds, charitable donations).

Total Other Payments / Deductions

The total of all of your ‘other’ deductions to be deducted from your pay.

Sample pay statement's total other payments and deductions

Net Pay

Total of all of your legislated and other deductions, subtract them from your gross earnings, and you’re left with your net pay. That’s what you’re actually taking home.