2021 Canada Pension Plan (CPP) Maximum Pensionable Earnings
For 2021, the maximum pensionable earnings under the Canada Pension Plan (CPP), for employee and employer, has increased to 5.45% (2020: 5.25%) and 10.90% (2020: 10.50%) for self-employed. Contributors who earn more than $61,600 in 2021 (2020: $58,700) are not required or permitted to make additional contributions to the CPP.
The increase in rate will have a maximum impact (per person) of $268.45 (2020: $149.10) for employee and employer, and a maximum impact of $536.90 (2020: $298.20) for a self-employed individual.
Below is the comparison for the last 4 years:
|
|
2021 |
2020 |
2019 |
2018 |
|
Maximum Pensionable
Earnings |
$ 61,600.00 |
$ 58,700.00 |
$ 57,400.00 |
$ 55,900.00 |
|
Basic Exemption |
3,500.00 |
3,500.00 |
3,500.00 |
3,500.00 |
|
EMPLOYER
CONTRIBUTION |
||||
|
Maximum employer
contribution |
$ 3,166.45 |
$ 2,898.00 |
$ 2,748.90 |
$ 2,593.80 |
|
Contribution rate |
5.45% |
5.25% |
5.10% |
4.95% |
|
EMPLOYEE
CONTRIBUTION |
||||
|
Maximum employee
contribution |
$ 3,166.45 |
$ 2,898.00 |
$ 2,748.90 |
$ 2,593.80 |
|
Contribution rate |
5.45% |
5.25% |
5.10% |
4.95% |
|
SELF-EMPLOYED
CONTRIBUTION |
||||
|
Maximum self-employed contribution |
$ 6,332.90 |
$ 5,796.00 |
$ 5,497.80 |
$ 5,187.60 |
|
Contribution rate |
10.90% |
10.50% |
10.20% |
9.90% |
(This posting is for personal educational purposes only. Please consult your tax advisor for your specific situation).
Associated Links:
2021 Employment Insurance Maximum Insurable Earnings