Understanding your paycheque

Text transcript

Along with the excitement of your first paycheque often comes the disappointment of finding out that it's less than expected!

All salaried workers have government deductions taken from their gross pay. 

Your gross pay is equal to your hourly rate times the number of hours you worked. 

Here's what's deducted from your gross pay: employment insurance, federal and provincial taxes, Canada/Quebec Pension Plan and, if you're in Quebec, Quebec Parental Insurance Plan.

Your net pay is the amount left after all these deductions have been made from your gross pay.

When you get your paystub, you should see a detailed list of all the deductions withheld from your pay.

Other kinds of deductions that can be made from your pay include group insurance, pension plan contributions, union dues, social club dues and donations.

To learn more about the financial aspect of all your big firsts, see High school students.

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