2023 Canada Pension Plan Maximum Pensionable Earnings
For 2023, the maximum pensionable earnings under the Canada Pension Plan (CPP), for employee and employer, has increased to 5.95% (2022: 5.70%) and 11.90% (2022: 11.40%) for self-employed. Contributors who earn more than $66,600 in 2023 (2022: $64,900) are not required or permitted to make additional contributions to the CPP.
The increase in rate will have a maximum impact (per person) of $254.65 (2022: $333.35) for employee and employer, and a maximum impact of $509.30 (2022: $666.70) for a self-employed individuals.
Below is the comparison for the last 4 years:
|
2023 |
2022 |
2021 |
2020 |
|
|
Maximum Pensionable Earnings |
$66,600.00 |
$64,900.00 |
$61,600.00 |
$58,700.00 |
|
Basic Exemption |
3,500.00 |
3,500.00 |
3,500.00 |
3,500.00 |
|
EMPLOYER CONTRIBUTION |
||||
|
Maximum employer contribution |
$3,754.45 |
$3,499.80 |
$3,166.45 |
$2,898.00 |
|
Contribution rate |
5.95% |
5.70% |
5.45% |
5.25% |
|
EMPLOYEE CONTRIBUTION |
||||
|
Maximum employee contribution |
$3,754.45 |
$3,499.80 |
$3,166.45 |
$2,898.00 |
|
Contribution rate |
5.95% |
5.70% |
5.45% |
5.25% |
|
SELF-EMPLOYED CONTRIBUTION |
||||
|
Maximum self-employed contribution |
$7,508.90 |
$6,999.60 |
$6,332.90 |
$5,796.00 |
|
Contribution rate |
11.90% |
11.40% |
10.90% |
10.50% |
(This posting is for personal educational purposes only. Please consult your tax advisor for your specific situation).