2024 Canada Pension Plan Maximum Pensionable Earnings
For 2024, the maximum pensionable earnings under the Canada Pension Plan (CPP), for employee and employer is 5.95% (2023: 5.95%) and 11.90% (2023: 11.90%) for self-employed, for earnings up to $68,500 (2023: $66,600).
Starting in 2024, a higher, second earnings ceiling of $73,200 will be implemented and used to determine additional CPP contributions. As a result, pensionable earnings between $68,500 and $73,200 are subject to additional CPP contributions
Below is the comparison for the last 4 years:
2024 |
2023 |
2022 |
2021 |
|
Maximum Pensionable Earnings |
$68,500.00 |
$66,600.00 |
$64,900.00 |
$61,600.00 |
Basic Exemption |
3,500.00 |
3,500.00 |
3,500.00 |
3,500.00 |
EMPLOYER CONTRIBUTION |
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Maximum employer contribution |
$3,867.50 |
$3,754.45 |
$3,499.80 |
$3,166.45 |
Contribution rate |
5.95% |
5.95% |
5.70% |
5.45% |
EMPLOYEE CONTRIBUTION |
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Maximum employee contribution |
$3,867.50 |
$3,754.45 |
$3,499.80 |
$3,166.45 |
Contribution rate |
5.95% |
5.95% |
5.70% |
5.45% |
SELF-EMPLOYED CONTRIBUTION |
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Maximum self-employed contribution |
$7,735.00 |
$7,508.90 |
$6,999.60 |
$6,332.90 |
Contribution rate |
11.90% |
11.90% |
11.40% |
10.90% |
Second Additional CPP Contributions (if your earning is more than $68,500)
2024 |
|
Additional annual pensionable earnings (Maximum Ceiling) |
$73,200 |
Contribution rate |
4% |
Additional employer contribution |
$188.00 |
Additional employee contribution |
$188.00 |
Additional self-employed contribution |
$376.00 |
TOTAL CPP CONTRIBUTION |
|
Employer contribution |
$4,055.55 |
Employee contribution |
$4,055.55 |
Self-employed contribution |
$8,111.00 |
(This posting is for personal educational purposes only. Please consult your tax advisor for your specific situation).