2020 Canada Pension Plan (CPP) Maximum Pensionable Earnings
For 2020, the maximum pensionable earnings under the Canada Pension Plan (CPP), for employee and employer, has increased to 5.25% (2019: 5.10%) and 10.50% (2019: 10.20%) for self-employed. Contributors who earn more than $58,700 in 2020 (2019: $57,400) are not required or permitted to make additional contributions to the CPP.
The increase in rate will have a maximum impact (per person) of $149.10 (2019: $155.10) for employee and employer, and a maximum impact of $298.20 (2019: $310.20) for a self-employed individual.
Below is the comparison for the last 3 years:
| 2020 | 2019 | 2018 | |
| Maximum Pensionable Earnings | $58,700 | $57,400 | $55,900 |
| Basic Exemption | $3,500 | $3,500 | $3,500 |
| EMPLOYER CONTRIBUTION | |||
| Maximum employer contribution | $2,898.00 | $2,748.90 | $2,593.80 |
| Contribution rate | 5.25% | 5.10% | 4.95% |
| EMPLOYEE CONTRIBUTION | |||
| Maximum employee contribution | $2,898.00 | $2,748.90 | $2,593.80 |
| Contribution rate | 5.25% | 5.10% | 4.95% |
| SELF-EMPLOYED CONTRIBUTION | |||
| Maximum self-employed contribution | $5,796.00 | $5,497.80 | $5,187.60 |
| Contribution rate | 10.50% | 10.20% | 9.9% |