Pay statement
Give a written statement when pay is paid, listing hours, rates, gross wages, holiday, vacation, and paid-leave pay, deductions, other payments, and net pay.
See details →PRINCE EDWARD ISLAND PAYROLL RESOURCES · PE · REVIEWED 2026-10-03
last verified 2026-10-03Prince Edward Island Payroll &Pay Statement Guide
Review the pay-statement rule under Prince Edward Island’s new Employment Standards Act, in force June 30, 2026, along with electronic-delivery conditions, 36-month records, the October 1, 2026 minimum wage, and the July 1, 2026 PEI tax-bracket change. Prepare a Canadian Pay Run for a small team or create an individual pay statement when that is all you need.
New Act in force June 30, 2026The new Act’s pay statement lists holiday pay and paid-leave pay as separate gross amounts.
No provincial payroll taxPEI employers withhold through the CRA and pay WCB assessments. There is no provincial employer health tax.
Reviewed 2026-10-03Checked against current Government of Prince Edward Island, Legislative Assembly, and CRA sources.
AT A GLANCE
What distinguishes Prince Edward Island pay-period records
Prince Edward Island’s new Employment Standards Act took effect on June 30, 2026. Section 37 requires the employer to give each employee, at the time pay is paid, a written statement showing the employee’s name; the employer’s name and address; the period or work being paid for; the wage rate and hours worked; gross wages; vacation pay, holiday pay, and pay for paid leave; any pay in place of termination notice; each deduction and its purpose; any bonus, tips, living allowance, or other payment; and the net amount paid. Section 39 records are kept for 36 months.
Minimum wage
PEI’s minimum wage is $17.30 per hour from October 1, 2026. It is scheduled to rise to $17.60 on April 1, 2027.
View the minimum wage announcement →New PEI tax bracket
For 2026, PEI added a 20% rate on taxable income above $200,000. Payroll uses a prorated 21% rate on that income for pay dates from July 1 to December 31, 2026.
View CRA T4127, July 2026 →Workers’ compensation
Most PEI employers register with the Workers Compensation Board of PEI and pay employer-funded assessments based on industry and payroll.
Visit WCB PEI →PROVINCE PAYROLL OVERVIEW
What makes Prince Edward Island different from other pay-statement jurisdictions
Prince Edward Island replaced its Employment Standards Act on June 30, 2026. The new section 37 pay statement is one of the most detailed in Atlantic Canada. It lists vacation pay, holiday pay, and pay for any paid leave as separate gross amounts. It also covers pay in place of termination notice and bonuses, tips, living allowances, and other payments, along with the employer’s address.
Electronic statements are allowed when the employer gives the employee confidential access to the statement through the workplace and a means of making a paper copy. Section 39 requires a longer list of payroll records, including the employee’s address, date of birth, and social insurance number. These are kept for 36 months after the employee last performs work. They are record items, not statement fields. Section 36 limits a pay period to 16 days.
PEI has no provincial employer health or payroll tax. PEI income tax is withheld through the CRA. The CRA’s July 2026 edition of T4127 added PEI’s new 20% bracket on income above $200,000, applied at a prorated 21% for the rest of 2026.
PAYROLL REQUIREMENTS CHECKLIST
The Prince Edward Island requirements checklist
When a statement is required
Give each employee a written statement at the time pay is paid. A pay period may not exceed 16 days.
Information to include
The employee’s name; the employer’s name and address; the period or work being paid for; the wage rate and hours worked; gross wages; the gross amounts of vacation pay, holiday pay, and pay for paid leave; any pay in place of termination notice; the amount and purpose of each deduction; any bonus, tips, living allowance, or other payment; and the net amount paid.
Electronic delivery
Electronic statements are allowed when the employer gives the employee confidential access to the statement through the workplace and a means of making a paper copy.
Other employer obligations
Keep section 39 payroll records for 36 months after the employee last performs work. Apply CRA source deductions and WCB PEI assessments separately from the statement rule.
PAYROLL RECORDS IN PRACTICE
How Prince Edward Island treats the statement after payday
Delivery method
Paper, or electronic with confidential workplace access and a means of making a paper copy.
Retention
Keep payroll records for 36 months after the employee last performs work. Required records include the employee’s address, date of birth, social insurance number, hours, wages, deductions, vacation, holiday and leave details, overtime hours, and employment dates.
CRA WITHHOLDING — NO PROVINCIAL PAYROLL TAX
Prince Edward Island withholding and employer payroll costs
PEI employers deduct federal and PEI income tax, CPP contributions, and EI premiums and remit them to the CRA. WCB PEI assessments are an employer cost and are not deducted from employee pay. PEI has no provincial employer health or payroll tax.
PEI income tax (July 1, 2026 change)
For 2026, PEI taxes income above $200,000 at 20%. For pay dates from July 1 to December 31, 2026, the CRA formulas apply a prorated 21% to that income. PEI’s basic personal amount for 2026 is $15,000.
WCB PEI
Employer-funded assessments based on industry rate and assessable payroll.
Income tax (CRA)
Outside Quebec, employers withhold federal and provincial or territorial income tax together and remit both to the CRA. Use the CRA payroll deductions tables (T4032), the Payroll Deductions Online Calculator (PDOC), or the T4127 formulas that apply to the pay date. For 2026, the lowest federal rate is 14% and the federal basic personal amount is up to $16,452.
Canada Pension Plan (2026)
For 2026: basic exemption $3,500; maximum pensionable earnings $74,600; employee and employer each contribute 5.95%, up to $4,230.45. The second additional contribution (CPP2) is 4% each on earnings from $74,600 to $85,000, up to $416.
Employment Insurance (2026)
For 2026, maximum insurable earnings are $68,900. The employee premium is 1.63% of insurable earnings, up to $1,123.07. The employer pays 1.4 times the employee premium (2.28%), up to $1,572.30, unless it qualifies for a reduced rate.
Remittances, slips, and ROEs
Regular remitters send source deductions to the CRA by the 15th day of the month after the deductions were made. Accelerated and quarterly remitters follow different schedules. Employers also prepare T4 slips for the year and issue a Record of Employment when an employee has an interruption of earnings.
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CPP and EI amounts are 2026 figures. Federal and provincial withholding values can change mid-year. The CRA issued a July 1, 2026 edition of T4127 (123rd edition) that changed British Columbia, Newfoundland and Labrador, and Prince Edward Island. Use the edition that applies to the pay date.
LOCAL AND COVERAGE CONSIDERATIONS
Prince Edward Island payroll is driven by provincial and federal rules
The primary sources reviewed for this page did not identify a municipal minimum wage or municipal payroll tax that changes payroll in Charlottetown, Summerside, or other PEI municipalities. The main timing issue in 2026 is the change of Act.
1
Charlottetown and Summerside
Apply the provincial minimum wage, statement, and record rules. Municipal business licensing is separate from payroll.
2
Pay periods around June 30, 2026
Statements for pay paid on or after June 30, 2026 follow the new section 37. Make sure holiday pay and paid-leave pay appear as separate gross amounts from that date.
3
Federally regulated employers
Federally regulated employers in PEI follow the Canada Labour Code. The federal minimum wage is $18.15 per hour from April 1, 2026.
4
Employees who work in more than one province
For CRA withholding, the province of employment generally depends on the employer establishment where the employee reports for work, not where the employee lives. Fully remote employees are assessed under the CRA’s remote-work policy.
A SOURCE-BACKED WORKFLOW
A source-backed workflow for Prince Edward Island payroll records
1Confirm coverageConfirm the employee is under the PEI Employment Standards Act and not the Canada Labour Code.›
2Record hours and pay typesCapture hours, regular pay, vacation pay, holiday pay, paid-leave pay, and any other payments.›
3Calculate deductionsApply federal and PEI income tax for the pay date, CPP, and EI.›
4Generate the statementShow every section 37 item, with holiday pay and paid-leave pay as separate gross amounts.›
5RetainKeep payroll records for 36 months after the employee last performs work.›
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OFFICIAL SOURCES USED FOR THIS PAGE
Official sources used for this page
01
Legislative Assembly of PEI · Employment Standards Act (2024)
Sections 36, 37, and 39: pay periods, pay statements, electronic statements, payroll records, and retention. In force June 30, 2026.
02
Government of PEI · Changes to the Employment Standards Act
In-force date and summary of changes.
03
Government of PEI · Pay and pay statements
Plain-language pay-statement guidance.
04
Government of PEI · Minimum wage set to increase
$17.30 from October 1, 2026, and $17.60 from April 1, 2027.
05
Workers Compensation Board of PEI
Employer registration and assessments.
06
Canada Revenue Agency · T4127, July 2026 edition
New PEI bracket and prorated rate effective July 1, 2026.
RESEARCH & REVIEW
Built from primary sources. Reviewed for accuracy.
This page is built from primary Prince Edward Island and federal sources and is periodically reviewed against current agency guidance. We use the Employment Standards Act as published by the Legislative Assembly, Government of PEI employment standards material, WCB PEI resources, and CRA payroll guidance whenever available.
FREQUENTLY ASKED QUESTIONS
Prince Edward Island pay-statement FAQ
What must a Prince Edward Island pay statement show?
The employee’s name; the employer’s name and address; the period or work paid for; the wage rate and hours; gross wages; vacation, holiday, and paid-leave pay; any pay in place of notice; each deduction and its purpose; any bonus, tips, living allowance, or other payment; and the net amount paid.
When did PEI’s new Employment Standards Act take effect?
June 30, 2026.
Can a PEI employer provide pay statements electronically?
Yes, if the employee has confidential access to the statement through the workplace and a means of making a paper copy.
How long must PEI payroll records be kept?
For 36 months after the employee last performs work.
What is PEI’s minimum wage?
$17.30 per hour from October 1, 2026, rising to $17.60 on April 1, 2027.
What changed in PEI withholding on July 1, 2026?
PEI added a 20% bracket on income above $200,000 for 2026. Payroll applies a prorated 21% rate to that income for pay dates from July 1 to December 31, 2026.
ACCURATE RECORDS. SUPPORTING EVIDENCE.
Use accurate records, review the preview, and keep the supporting evidence.
Prepare a Prince Edward Island Pay Run, review each pay type, deductions, and CRA withholding before completion, and keep the applicable PEI sources with your payroll workflow.