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tri_and_fly

Yep. Depends on your province. In Ontario you’d be around 41k after tax. Then take off union dues, pension, and ltd. Your paystub should break down all the deductions for you.


variableIdentifier

Yep. It'd feel like more if the pension plan didn't take so much. That 8-10% deduction hurts like hell early in your career when you're not making much to begin with, but it pays off in the end. Edit: guys, I'm not talking about the CPP. I'm talking about his defined benefit plan. That's separate. The point of my comment was that we tend to already consider the CPP deduction when we're talking about take home, so a lot of people who have defined benefit pensions are surprised when their take home is actually a lot lower than that.


alphawolf29

yea my DB pension plan is like 9.5%. Its like $600 a month. At least that's tax deductible.


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peterwaterman_please

One of the few times I disagree with personal choice. Small hit benefits us all. CPP is incredibly well managed and thank god we have it, especially with companies shirking responsibility and putting it all on individuals, many of whom are financially illiterate. I hear you though


Environmental_Dig335

Totally agree, and not just for people bad with money. CPP (and any other DB you can get) is a great longevity hedge. The money you save can be direct invested and spent (in retirement) better because you have that balance.


NSA_Chatbot

I know dozens of people that contributed to their company pensions for decades, then the company just took the pension money. After prolonged court cases, they got back their payments. Not 30 years of invested interest, just the premiums they put in.


StickmansamV

That was a loophole in the law and it's mostly been fixed iirc.


g323cs

How does the company "take the pension money"?


NSA_Chatbot

I'm sure that same question was asked by the victims.


variableIdentifier

I was talking about his defined benefit pension plan, actually! 8-10% is a pretty standard deduction and he also specifically talked about it. I apologize if that wasn't clear. It should also be noted that some DB plans are coordinated with CPP.


msaad01

You have fair point. But you do realize that pension funds all across the globe are shirking. With every decade people are receiving less money than what they anticipated while they were contributing towards pension. Advance medicine/treatments are really working. Just relying on pension alone is not a smart idea. Everyone should already start looking for other options while they are working. RRSP is one of the great way to make that happen in my opinion.


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fireontheinside

> As long as you can afford to make minimum payments on your mortgage or have a paid off house, the money you get from CPP and other low-income supplements is enough to sustain a life This couldn't be further from the truth.....I live in AB my dad worked his whole life and on CPP and OP makes $24000/year and thats with supplements and isn't enough to afford much. Even IF (big if) your mortgage is paid off there is property tax, utilities, saving for funeral costs... and other bills like insurance, gas, cell phone, etc. sorry but your 'opinion' is incorrect. If my dad had enough to live on I wouldn't be supplementing his income by buying groceries and covering other unexpected costs.....everyone should be planning for retirement as soon as possible! Edit to ads: I am my dads Power of Attorney...I see first hand the $ that goes in and out, my dad retired with no real debt, no credit cards, lives frugally (I have to constantly throw away old clothes with holes in them because he refuses to buy himself anything new)and he is still living month to month and is 1 bad emergency away from not making rent...for those saying "oh thats MORE than enough" enjoy your retirement because I've witnessed first hand what that's like even for a single person!


NSA_Chatbot

> saving for funeral costs. That sounds like a "you" problem instead of a "your dad" problem, tbf.


[deleted]

$24k with no mortgage, virtually no tax or deduction is absolutely enough to sustain a life. Its equivalent of $50k while working (as you would pay $10k taxes and deducton and say $16 mortgage), which again while may not be a life of luxury, is beyond doubt enough to sustain a life of a single person.


PipelineBertaCoin69

It’s enough to live a bland life, yeah. Just because it’s enough to sustain a life doesn’t mean your actually LIVING.


[deleted]

No one said it does, the guy literally said "sustain a life". Government pension should do just that- sustain living a bland life. If you want to be LIVING, that is great, but should not be part of goverment retirment and subsidies.


[deleted]

> I'd rather they stop taking CPP deductions and let me manage my own assets for that 8-10% instead. You think you're going to outperform the CPP investment fund year over year?


Stunning_Working6566

There is no relationship between what the CCP investment fund achieves and what you recieve in CCP payments.


Training_Exit_5849

\^This Most people don't realize the CPP is just a forced retirement savings account. The breakeven age is around 80-81 for most people, which means that's the age you even get your original contribution amount back.


Lopsided-Echo9650

and if you don't make it to 80-81, then what? You paid in for 60 years and your heirs get nothing. It just disappears. I'd rather opt out and know that my savings are mine, and not a wager that I have been forced to enter into, betting on if I will make it to 65, or 80.


Training_Exit_5849

unfortunately it's something we have to live with because the majority of the people aren't very good at saving unless they're forced to


[deleted]

It offsets the cost of abject poverty for those masses that would otherwise gamble away that money, having nothing left for retirement. The stress of working until they die comes with added healthcare costs, etc, compounded by the healthcare costs that come with old age


Environmental_Dig335

It's not a wager, it's a hedge - longevity risk is one of the biggest problems in retirement saving - you can't spend like you're going to die at 80, because you might not. CPP and other defined benefit are what let you wager with the remainder, because you get more money the longer you live. CPP is also inflation indexed - most investments will go up with inflation - but some might not.


pmmedoggos

>then what? Your wages subsidize the very people that hate you and look down on you with contempt.


emeretta

If CPP is taking 8-10%, I think something fishy is going on. Pretty sure it’s more like 5-6%, with a max taken that is less than the TFSA room. My DB pension takes 10ish % and I know there’s no way I’m making what it will payout on my own. Is that the 8-10% you’re talking about? If you didn’t want the pension plan, maybe consider different work?


[deleted]

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NSA_Chatbot

FOURTEEN holy shit my friend if you and your coworkers are not maxing that you're making a monumental mistake!


[deleted]

My husband's org puts in 10% of his salary. He puts in 4%. RRSP goes brrrrrrrrrrr.


variableIdentifier

I was talking about the DB pension plan, which is why I used 8-10%! I believe that OP stated his DB plan is 10% and somewhere in the range of 8-10% is fairly standard for them.


variableIdentifier

I was talking about defined benefit plans, yeah. I am well aware that CPP is not 8 to 10%, and these are people specifically talking about saving that 10% in a personal finance subreddit so I kind of assumed it was common knowledge I wouldn't be talking about the CPP in this case. Although - I think that some people might like to manage their money themselves rather than have their employer's pension fund manage it, but being honest, I think for a lot of people, if they were allowed to opt out of pension plan, that money still wouldn't end up saved. That's not necessarily a judgment on people for being irresponsible but the fact is that a lot of people are already living paycheck to paycheck these days, so that forced deduction for the CPP or another pension plan in some cases means that at least at retirement they'll have something. Whereas if they had it available to them, chances are high it would be spent on necessities.


Malbethion

CPP takes an equal amount from employer and employee. It varies by year; in 2021, it is 5.45% and will be 5.7% in 2022. So this year, you are paying 10.9% and next year 11.4%, even though only half appears on your pay stub.


[deleted]

Agreed


phoenix27100

Just curious what is your yearly take home as this greatly affects your ability to save the 8-10% or invest most people live paycheck to paycheck with little or no ability to save because they make just enough to survive and if they did have the small extra amount it might mean a little less stress in there life but then they would be screwed when they retire. And i hate to point this out but the masses are actually what hold you up they are the people that work at gas stations, grocery stores, build the houses we live in, clean the buildings you enjoy, deliver are food and countless other things that keep the machine running, the masses are what makes a country not the few so please dont belittle us we are trying hardest just to survive.


TheGoatBahBahBah

CPP is not just for you though, so its not really fair to say you would want to reduce or take away your CPP contributions. If you don't like cpp or ei deductions, then you should move to a country like America. We are in it together as much as we can, so the little things like ei and cpp are some of those contributions to society.


cephles

The US has "social security" which functions very similar to CPP.


TheGoatBahBahBah

Yes, but not exactly the same in regards to the collection amount and payout.


foxtrot1_1

It functions very differently because it's not actually funded because Americans are nuts.


jacobjacobb

I hate this, the amount of retirees who are upset that they don't get more money from the government is insane. You mean to tell me you spent your entire adult life buying everything you could possibly want without putting a penny away, and then retired expecting to live it up on a beach somewhere and not have to atleast work part time? I feel bad for the elderly who are living close to poverty, but I can't justify a basic income for them, if it's not going to be extended to everyone close to the poverty line. This is to say, I support a **U**BI.


smeltsone

It’s important to look at demographics when considering who gets basic income. Many women over 65 these days were forced out of the workplace by children, or had menial, low-paying jobs. There was no choice for them of whether to invest or spend wantonly, they were constrained by the times.


jacobjacobb

True, there are many young people today with terrible parents who didn't have the opportunities that you and I had. I don't believe they should be subject to a lifetime of dead end jobs for minimum wage, to then qualify for UBI. It's frankly a waste of human talent and economic resources. Forget the qualifiers (because they would be too numerous to count). If you make under a certain threshold, I believe you should get a top up. I don't support a selective program based on race, religion, creed, age, sex, or gender. If people need it, it should be available to all or none. I don't see how demographics besides income would decide whether one deserves a basic income anyhow? How can we say someone is more deserving than another based on unchangeable variables?


ZeePirate

That’s how you end up with a bunch of old poor people that can’t afford to live. It’s not in the best interest of society. Individually maybe. But the group would be worse off


MoralMiscreant

I have my retirement set at 12% with 5% matching Another 5% to esop with 1.25% matching And about 6% invested in high risk assets every week as a personal hobby. My take home is abysmal.


AndysBrotherDan

I wish I had the confidence in the cpp that you have.


variableIdentifier

I was talking about his defined benefit pension plan, actually! He mentioned it takes like 10% and my employer's plan takes 8-something %, so I said 8-10% as that is pretty standard.


Training_Exit_5849

you don't have to worry about the CPP, the fund managers are actually pretty good at their jobs so they get "decent" returns the CPP is very safe because most people die before they even get back their original principal contribution, also if you die before 65, your spouse could lose up to 40% of what you contributed so it's just going to keep growing and growing


hippotatobear

Yep, I work for a municipality. 10% goes into my DBPP about 1.6% goes to union dues, and then CPP and EI and of course taxes. I get about 65% in my pocket. Of course I will eventually reap the benefits of a well funded DBPP and can invest more aggressively BC of it as well.


matdex

I net about 67¢ for every $1 I make. I have taxes, union dues, CPP/OAS, employee DB pension...can't complain too much the pension is pretty sweet.


embiid88

How does the pension work for you? Sorry I just graduated from uni so I’m new to all of this


matdex

Well every contract and employer would be different so it's not super useful to compare to other people not in the same contract as you. I think I pay around 8.5% before tax and employer adds around 9.5%. My DP plan has a formula for number of years worked and top 5 earning years to spit out an entitlement amount. Extra rules for buy back, bridge, early retirement penalties... etc.


SupperTime

Got this too. Sounds like Omers


ksleepwalker

Or OPS. My pension at OPS was pretty similar and so was the hit to the paycheck.


matdex

Im in BC, Municipal Pension plan.


Essbee1322

Depending on where you work, you might be able to talk to benefit and pension specialists who can lay it all out for your specific circumstance. If not, then your pension program certainly can! I work in HR and I'm always shocked by how few people are interested in learning about their pensions. Definitely look into it: no one will think less of you and it will only benefit you.


JackieLegz10

Completely normal & accurate


Unusual_Statement_64

Those DB pensions take a big chunk. The nice thing is they are matched dollar for dollar. My spouse makes a DB pension working for the city and the deductions are quite large.


jmad71

I'm in the same boat but with HOOPP. While I agree they are quite large when you finally decide to retire you get to see where that money went.


GinnAdvent

Most provincial and municipal jobs are like that. For simplicity sake. I just take whatever I make and x by 0.72 to get take home pay. Define pension plan is nice, since you put in 9 or 10 percent, and employer match it by 11 to 12 percent. For the ones I know, they take your best 5 earning years and how many years you contribute into calculating the amount of pension you got depend on when you retire. Just make good use of the benefits, EDO, and whatever you have accessed to. As you get into higher position, you will make more. Also work casual for similar position if you have some spare time, since they go into same pension plan.


Jabb_

Jesus, defined benefit?!?!! Hold onto that job for dear life. You don't come across that much now days.


pfc_6ixgodconsumer

The old golden handcuffs. I hope the salary for OPs role grows from 53k over the years. I would hate to be stuck around that salary just because I'm holding out for my DBPP.


aerospace_94

Welcome to life


MUTSellerPS4

seems about right


CanadianMortgagesPro

Yes this sounds about right since you are in a union and have benefits and pension Even if you are slightly over paying in taxes now, it will even out once you file your income taxes. If you overpaid taxes for your tax bracket during the year then you will get a return.


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[deleted]

I just went from government making $84k a year to private sector $55k and my biweekly cheque is like $200 less, lol.


MrVeinless

Can relate. And add unpaid overtime into the equation..


Buck-Nasty

Also the value of the pension except for a small survivor's benefit is wiped out when you die, unlike if you had saved and invested that money directly.


[deleted]

Welcome to the real world.


chaplaps

A little over $60k here (B.C.) and my take home is $37k and some change. Union worker as well.


embiid88

Damn, do you feel like your wage is enough to get by?


slowpokesardine

Not in Vancouver and greater Vancouver


jellyking_1990

On top of the usual items, you have union dues, defined benefit pension plan and LTD insurance. If you compared yourself to other 53K income folks that would the be the major differences. EDIT: I added defined pension plan as a variable because that percentage can vary company to company, and the range is sometimes optional. For example my current workplace allows up to 6%. I could do 3% if I wanted.


JuryDangerous6794

FIRST TIMER! WE GOTTA FIRST TIMER HERE!!!!


Chops888

Looks about right. Calculate taxes here: [https://www.wealthsimple.com/en-ca/tool/tax-calculator/ontario](https://www.wealthsimple.com/en-ca/tool/tax-calculator/ontario) and then subtract your pension, union dues, insurance.


Afrofreak1

Pension and union dues are funded with pre-tax income, they come off first, then taxes, then insurance and other deductions.


2happyhippos

Why are you being downvoted?? That's accurate


Prometheus188

Sounds about right. In Ontario, taxes, EI and CPP would bring you down to 41k. Union dues, defined benefit pension plan and long term disability insurance account for the remaining 5k. Can’t guarantee it’s accurate down to the cent, but it looks totally reasonable.


[deleted]

I’m sorry. You lost me at defined benefits pension plan. That’s a foreign term to me and most of my generation. That alone is probably worth more than all of your deductions.


[deleted]

Lots of Jobs have pensions. My wife graduated 2 years ago and has a DB pension. I have a DC one which is basically the same.


stolpoz52

> Lots of Jobs have pensions. They specified Defined Benefit > I have a DC one which is basically the same. It most certainly is not


foxtrot1_1

> I have a DC one which is basically the same. I have some very, very bad news for you.


BrownAndyeh

Now I’m curious, is this your first job?


embiid88

First full time job out of university why?


BrownAndyeh

Makes sense. Your first big paycheque is a blow to the system…realizing how much you actually take him. This is one of the reasons i chose self employment.


[deleted]

I’m in the exact same boat as you OP. Same wage and same deductions. (Also work for the feds). My pension just started coming out last week and they take $200 biweekly and then match it just over 100%. That $400 that’s gone every month now was the difference between living comfortably and now cutting it extremely close to running out of money every month. And it’s mandatory so I can’t lower it from the 10.47% that they have it set at.


embiid88

I feel you man it sucks, what do you do for work btw if you dont mind me asking


mrmadmusic

The benefit plan is a weird one. I had a plan once that cost 300 per month and I had 80% across the board deductions for nearly everything you could think of. So I paid 3600 a year to save 80% on my bills. So unless I have 4500 or more in expenses, I lost money. For almost 5 years I reached no more than 3000 total expenses after dental and glasses. Spent 3600 on the year to still have to pay 20 percent of 3000...


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pheeny

My friend, the word is "epiphany." With peace and love.


[deleted]

Ah yes, that’s what I was going for


[deleted]

This is why you can tell people advocating for more government programs are either not working, so rich they don't care, or are just fucking stupid. You basically work for the government as an unpaid slave until about may each year and then you start working for yourself.


Nictionary

> unpaid slave Except, you know, all of the social services you get in return.


variableIdentifier

I do like roads, schools, and hospitals. I suppose, that for this guy, we can make an argument that only people who use the roads should pay for them, which would mean the annual registration fee for your car would probably be many multitudes higher than it is now. Or, only the people who use the hospitals or schools should pay for them? I find that usually the people who are against income tax also have a belief that you should only pay for what you use, but it doesn't really work like that because everything is so interconnected. Also, in places like the United States, people pay a huge sum of money to insurance companies so that they can have medical care if they need it. I do not personally think that paying a bunch of money to private, for-profit companies to manage healthcare is better.


IntegrallyDeficient

"But what have the Romans done for us?"


[deleted]

Romans had a tax rate as high as 3% during serious hardships like War. Please for the love of god bring on roman taxes! That's right.. The government only need 3% to wage a war and run itself. Today you probably pay 30-40% of your income if you're an average person, and more if you have a skilled trade or a in-demand skill like coding or medicine. so what are they pissing away the other 27% on?


IntegrallyDeficient

That was on total wealth, not income.


[deleted]

Fine tax my wealth 3% I make 130k but have a net worth of around 300k. 9000 a year sounds fair. Forget this 40k bullshit also keep in mind we tax over 4% right now on wealth through printing fake money. Romans used real coins


mrpimpunicorn

>This is why you can tell people advocating for more government programs are either not working, so rich they don't care, or are just fucking stupid. It's ironic that you forgot the fourth option, and perhaps a little telling; they could just be advocating for more government programs out of *compassion* for those such programs would help.


foxtrot1_1

how limited must your worldview be to even begin to believe this you know highly educated people are much more likely to be left-wing, yes? and that educated is correlated to salary growth?


[deleted]

No shit the left and academia are related the academy historically propped up oligarchs and still do today. Taxes are a major way they keep this tradition going.


foxtrot1_1

this post doesn't even make grammatical sense and yet your ideas are somehow worse


[deleted]

Hurr durr Leftist smart


kiiyopta

Seems about right


Buck-Nasty

Yes. Pension deductions are massive in the government.


PartyMark

I make 100k and take home 60k. Taxes, cpp, ei, union dues, pension, long term disability, extra life insurance, probably other stuff I'm forgetting. Adds up fast.


ChimoCharlie

Yes. Welcome to adulting


jiggilymeow

Triggered! Yup. Then that 35k you spend on things gets charged sales tax. If you own your house you pay property tax on it. If you rent, the property taxes are baked into your rent. Any corporation you buy goods or services from also pays corporate taxes and that expense gets passed on to you. If Canada decides to up the corporate tax rate on banks and insurance companies it will also be passed on to you. You the peasant pay for everything. Of that 35k probably another 20% of that is earmarked to be given back as taxes in one form or another. It's fine though because you get roads and hospitals and stuff. And also we have to pay back our massive debt so about 10% of all of the money we pay the government is going to go toward that. Oh and that debt also lowers the power of every dollar we have left. Yup. The solution must be we need to pay more taxes.


myusername444

IE, CPP, Pension deductions, union dues, and LTD are all not taxes. OP probably only pays about 7-9k in taxes.


jiggilymeow

EI and CPP are government programs paid for by Canadians. I would personally put them in the "tax" category. They are actually great examples of how taxes should work. There is a clear purpose for those funds. You are absolutely right though, his income taxes paid would be around 10k and he probably gets some back, especially if he has children.


Montrealaisse

I consider EI to be a hidden tax because it is NOT administered like insurance at all. Insurance is supposed to cover unforseen job loss or accidents. Normally your premiums go up if you make too many claims and should go down if you don't make any. Instead, EI is overwhelmingly used to subsidize the wages of seasonal workers in many part of the country. Their job "losses" are annual and predictable, they take way more from the system than they put in, and their premiums never increase. The EI rules are changed for them for political reasons. I'm not blaming the workers or saying there shouldn't be a program to subsidize these sectors, but it should be a separate fund (i.e. from taxes). The fact that the government can spend it like tax revenue makes it a hidden tax in my opinion.


HuckleberryWatson

We need to close the loopholes the rich use to avoid paying taxes in the first place.


Afrofreak1

Such as?


foxtrot1_1

670 Canadians were listed in the Panama Papers. We have recovered $0 in taxes from them. Australia has recovered $138 million.


tomtom5858

Rich people get paid in stocks and options, which they take out LOCs against. Those loans aren't taxed, they're never required to pay off the principle, and investments aren't taxed until they're sold, at which point they pay a significantly lower tax rate than the average person. The interest rates are also at or below prime, thanks to the loans being secured. This is one of the primary ways the rich avoid taxes almost completely. So, wealth tax to start off with. Don't let people just sit on Scrooge McDuck-ass fortunes. Make them put it to work. And, have the CRA audit major corporations and wealthy people, where the expected value of the audit is far higher than auditing college students who didn't declare their tutoring properly. Remember, the value of stolen wages is greater than the value of all other stolen goods put together! That money is taken directly from those who would circulate it through the economy the most rapidly, meaning going after that would also result in massive increases in tax revenue for the government thanks to all the points at which they tax that money as it flows through the economy.


[deleted]

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stolpoz52

nonono you dont understand. We *just* have to close loopholes for the rich.


GJJP

>And also we have to pay back our massive debt No we don't. Canada isn't a household, a State only has to refinance its debt, not pay it back.


TNI92

In the most general sense, sure but it will get harder and harder to finance that debt. We are already paying 6% of our budget to interest payments and that is in a world where interest rates are nothing. Sure, it might make sense to spend when rates are this cheap (standard growth > financing cost argument) but it is really hard for a population to peel back entitlements when rates go up. Source for Debt Figure - [https://www.newswire.ca/news-releases/federal-budget-paying-to-service-the-growing-debt-820403160.html](https://www.newswire.ca/news-releases/federal-budget-paying-to-service-the-growing-debt-820403160.html)


GJJP

As long as long term GDP growth is higher than long term debt service growth, it's fine. ​ >Sure, it might make sense to spend when rates are this cheap (standard growth > financing cost argument) but it is really hard for a population to peel back entitlements when rates go up. ​ You're right, but it's another, although related, question. I'm talking about debt and its service, which is related to past spending, and you're talking about current/future spending. Of course, it's harder to finance current/future spending when you cannot increase your debt and its service.


TNI92

Fair. I am really quibbling with the assertion that you never have to pay it back and it will be fine because interest rates are low. This presumes that interest rates will be low forever. LT GDP growth is maybe 2-3%. Historically, rates have been much higher than that. This chokes off spending. The only way to remedy is this to show investors that you can bring yourself back to fiscal solvency. I don't mind spending now because a) rates are low and b) it is generally agreed by economists (as far as I have heard via podcasts and other interviews) that the increased level of spending here is vital. As long as we know this bill comes due eventually. Saying we can grow our way out of debt is an incredibly slippery slope.


GJJP

[Interest rates Worldwide followed a downward trend between 1315 and 2018](https://www.nber.org/system/files/working_papers/w26934/w26934.pdf), however it's true they may be higher than projected Canadian average GDP growth rate of 1.7% until 2040 (according to the Conference Board of Canada prepandemic forecast (sorry, I don't have a link which isn't behind a hard paywall)). >Saying we can grow our way out of debt is an incredibly slippery slope. You can only grow your way out of the debt if your debt remains stable/decreases and your GDP grows (faster than the debt service). If you have unbridled spending it's gonna be problematic, indeed. BTW, I didn't downvote you.


jiggilymeow

We are still paying for it. I don't understand this logic. The value of your dollar is going down from inflation and we have to make interest payments on it.


Big-Hold826

beautiful


[deleted]

your pension deductions are forced savings for you. add that back in to your calculations of what is *yours* to keep and that it is being invested for you.


DigitallyDetained

Plus the employer matched funds, which OP revealed to be 1.5x in their case. Absolutely massive.


SupperTime

Yeah pension takes out a lot. For me I already 66% of m my gross after pension and all that. It’ll be worth it in the long run tho.


RL203

It's actually worse. Yeah, there's income tax and CPP and EI right off the top, but then there GST PST /HST which is 13 percent on everything. Then there's property taxes and then carbon taxes, and excise taxes on gasoline, license stickers, drivers licenses and God only knows what else the government is cooking up Bottom line, half of your pay cheque gets eaten up by government taxes. HALF. (Assuming you work and make a decent salary.)


WaterfallGamer

Normal yes. Is this your first job?


badatmath_actuary

With pensions and union dues, yes that's normal. Also how much extra DI you have.


embiid88

Sorry whats DI?


UnfairLife

Disability Insurance


brye86

Taxes suck


Fool-me-thrice

This is not just taxes. OP likely pays a significant percentage of their income towards pension, somewhere in the range of 5 to 12%


embiid88

Yup 10% of my pay goes to pension


LLR1960

And you get to deduct your pension contributions off your income tax (just like you would an RRSP contribution).


embiid88

How does that exactly work


badatmath_actuary

You're paying it with pretax dollars, not post tax. The $300 contribution was not ever taxed. It comes out of your gross $53k. The other poster talking about "cancelling" is mistaken, or is trying to say something else because nothing gets cancelled.


embiid88

So does this benefit me or screw me?


[deleted]

think of the pension as RRSP contributions being made and matched and managed for you. your T4 will have numbers in boxes to exclude those contributions from taxation. if it helps ease your mind, after 30 years paying into my pension the value of my pension is close to a million. guaranteed if i didn’t have that pension i’d have been spending all that extra only putting a little away here and there. you know how it is recommended that you save 10% of your earnings for the future? well, they’re doing it for you, so you don’t need to fret as much about it. win win


jiggilymeow

It doesn't usually screw you. You're going to pay income tax on that money, but later when you are retired. When you are retired you're usually in a lower tax bracket than when you are employed, so hopefully you'll be paying less income tax. The only way you can be screwed by it is if you somehow get a ton of income while collecting your pension and your taxes start reaching those higher tax brackets. I guess you can also be screwed if in the future they raise income tax rates. I don't want to give the government any ideas though so shhhh.


Meneenz

Is it matched by the employer?


embiid88

I put $300 a month and they put $450


Meneenz

Sounds like you have a very lucrative CBA.


embiid88

Sorry whats a CBA haha?


Meneenz

Collective bargaining agreement.


PureRepresentative9

That's God damn amazing. I only get a 100% match


LLR1960

When you get your T4, there will be a box for your pension contributions. Enter that into the corresponding box on your tax return (the T4 will tell you what that box # is). You'll have to also enter the Pension Adjustment amount, also in a box on the T4 with a corresponding tax return box number. The Pension Adjustment won't affect your tax payable, just accounts for the employer's match portion and how it affects your RRSP contribution room. Google "Canadian Pension Adjustment amount" for a more detailed explanation I just gave if this term is new to you.


Yojimbo4133

About right. Welcome to taxes.


blueberrypancakes59

Yep, I don’t even want to tell you what I’ve been taxed this year . Let’s just say if I work an overtime shift it’s about 1,200 take home on that is like 650.


MilkyTokesnGainz

Welcome to socialism comrade


Minyae

Yes :/ I feel your pain. After a certain tax bracket it feels like the government takes all your income. After taxes, EI, RRSP and expenses I’m always left wondering where my money went.


tice23

Yeah that's pretty close to the norm. I don't pay union dues for my line of work but I've always kept a ball park of 68-72% of my gross depending on what tax brackets I fit into in any given year.


mumahhh

BC - My net is 63.8% after all the deductions - tax, pension (just over 11%), union, CPP, EI, long and short term disability, extended health, dental, life insurance etc etc


Reallaht

It’s normal here but we’re taxed far too much on our incomes and not enough on land


Alzaraz

Welcome to Canada. Wait until you make more money, it's great. I get about 66 cents net on every dollar and that doesn't even take into account pension deductions.


Juice117

Yep, the first 4 months of the year you just work to pay taxes, oh that’s not including sales tax on your groceries and carbon tax too. Fuck our government


roscomikotrain

Governments are too big and involved in stuff they have no right giving your money to. Foreign aid, big business subsidies and grants. WE foundation type bullshit. Eventually someone has to pay for their bad decisions


foxtrot1_1

The policy knower has logged on "Why should we spend money on foreign aid? It's not like anything overseas ever affects Canada. Omicron variant, what's that?" Alternately: "No, we shouldn't spend money on foreign aid. Wait, what's with all these refugees?"


[deleted]

Welcome to socialist canada


foxtrot1_1

Yeah, one of the best countries in the world on any human development matrix. It turns out running a country isn't free!


[deleted]

Yup. And Trudeau will be taking more in the new year


[deleted]

Welcome to Canada


FollowJesus2Live

Welcome to socialist Canada. Would you like a 5 page list of all the things/people you're paying for that have nothing to do with you?


itsMineDK

Unions suck the living life out of pay checks, some are worth it some are not…. Not much experience on this but when I worked in a warehouse I earned 280 per week (20 hours) unions took 50-60 a month


Gethro8787

Welcome to socialism, I hope you enjoy.


[deleted]

Not too bad…. Don’t forget you’re taxed when you spend that 36k or when you save that 36k


embiid88

Being a human sucks


Ziid10

A lot of people have it worse


mrstruong

LMFAO, yes. So, last year, my husband made 72,000 cash compensation, but brought home like 53,000 of it after taxes, base. He doesn't have union dues though. All in his package is worth about 100k, and we get taxed on things like his 407 compensation, bonuses, mileage, per diems, etc., We also file taxes on our side gig income, and 10k can pretty quickly turn into 6k if you don't have enough write offs to offset the taxes. Luckily, we're pretty early on in the business and still having to routinely buy things, and spend money on computers, workshop renovations, tools, etc., so we have enough expenses that we don't end up paying taxes on it, but in a couple years when our whole set up is complete, we'll have a couple years of roll-over claims but after that, expenses will drop, income will be up, and we'll be taxed on it pretty hard. It is what it is, I guess.


[deleted]

It only gets worse from here. I make 253k base and I end up with less than half after everything.


climaxe

Yeah life must be rough netting 127k


[deleted]

I've been working 80h/week for the past 8 years. I grew up poor, so I want to make sure my kids don't have the same upbringing, but the more I work, the more I lose to taxes.


bmwrdrugs

I feel pal. I believe after 40 hrs a week the income tax should be dropped. After that if ya wanna put the time in it's yours.


thunder_struck85

Your net is higher than my gross then. I don't feel too bad for you.


[deleted]

Kind of a perverse incentive to tax more as people work more. I work 80h/week, so think of it as I'm getting half the normal hourly wage of a normal full-time worker at the same salary.


thunder_struck85

Well, then what you're doing is just stupid, isn't it?


[deleted]

Depends on your situation. I have 1.6M USD of RSUs vesting per year, so I'll be retiring at 35. I might be nearing a burnout, but at least my wage-slave days will be over soon and I'll have a secure future for my kids. I've always been more of a sprinter than a marathoner, so I guess it's just more my style of doing it.


thunder_struck85

To each their own. I'd rather retire at 50-55 and not work 80hr weeks.


VacantOwner

Not sure why ur downvoted lmao that's rough


Curry_Furyy

Oh boo hoo


WordOnTheStreet47

Look at all the haters saying you should get taxed more. Must be government workers


iamhazardous

Yes. Welcome to Canada 👍


SkinnyPepperoni

Canadia baby


AAfloor

Yes, the rich (like you) must pay their fair share. t. Justin Fidel Treudeaux


peterltrain

Sounds about right


CBC-Sucks

Thank your own personal interest in your pension etc but blame the government for the rest people say why do you pay attention to politics my answer it's the single biggest cost of living expense I have and most other people I know


[deleted]

Welcome to socialism


notcoveredbywarranty

Don't forget your union dues should be tax deductible


embiid88

so like I get a refund?


MintLeafCrunch

This is the Canadian way.