
PEI is Canada's smallest province with straightforward payroll — no employer health tax, 8 general holidays, and standard CPP and EI. Rippling handles the full federal + PEI compliance stack.
Prince Edward Island is Canada's smallest province, located off the Atlantic coast. Charlottetown serves as the capital and main employment centre. PEI's economy is anchored by agriculture, tourism, and provincial government, with a small but growing technology and business process outsourcing sector. PEI payroll is relatively simple with no provincial employer health tax and standard federal obligations.
Rippling's PEI payroll module provides federal + PEI income tax withholding (including surtax), CPP, EI, WCB PEI tracking, PEI vacation accrual (4% / 6% at 8 years), and T4 generation.

| Contribution | Rate | Notes |
|---|---|---|
| CPP (Employer) | 5.95% + CPP2 | Matches employee. |
| EI (Employer) | 2.32% | 1.4x employee rate. |
| WCB PEI | Variable | Rate by industry. |
No PEI employer health tax.
| Contribution | Rate | Notes |
|---|---|---|
| Federal Income Tax | 15%–33% | Per TD1 elections. |
| PEI Income Tax | 9.65%–18.75% | Progressive brackets. PEI surtax applies at higher income levels. |
| CPP | 5.95% + CPP2 | Standard. |
| EI | 1.66% | Standard. |
| PEI Income (2024) | PEI Rate |
|---|---|
| Up to $32,656 | 9.65% |
| $32,657–$64,313 | 13.63% |
| Over $64,313 | 16.65% |
PEI surtax: 10% on PEI tax above $12,000; 5% on PEI tax above $500. Rippling applies surtax automatically.
ESA Notice: 2–8 weeks depending on service. No separate severance provision in PEI ESA.
Statutory: CPP, EI, Workers Compensation Board PEI, PEI Employment Standards Act minimums.
Market standard: Extended health/dental, group life, LTD. PEI is Canada's smallest province — primarily agri-business, tourism, and provincial government employment. Charlottetown has a small but growing professional services sector.
PEI's Employment Standards Act requires: minimum wage ($16.00/hour as of October 2024), 2 weeks vacation (4%) first year, 3 weeks (6%) after 8 years, 8 general holidays, and termination notice of 2–8 weeks. PEI's 8-year step-up to 3 weeks matches New Brunswick and is longer than most provinces.
Yes. Rippling handles PEI payroll including federal and provincial income tax withholding, CPP, EI, WCB PEI tracking, and PEI ESA compliance. PEI payroll is straightforward with no provincial employer health tax.
PEI has 8 general holidays: New Year's Day, Islander Day (third Monday February), Good Friday, Victoria Day, Canada Day, Labour Day, Thanksgiving Day, Christmas Day, and Remembrance Day.
PEI has a relatively high minimum wage ($16.00/hour as of October 2024) for its size — among the higher rates in Atlantic Canada. This reflects PEI's effort to retain workers against emigration to larger provinces.