The Canada Revenue Agency has announced that the Year’s Maximum Pensionable Earnings (YMPE) under the Canada Pension Plan (CPP) for 2022 will be $66,600 – up 2.6% from $64,900 in 2022. The new ceiling was calculated according to a CPP‐legislated formula that takes into account the growth in average weekly wages and salaries in Canada.
The employee and employer contribution rates for 2023 will be 5.95%, up from 5.7% each in 2022. The increase is due to the CPP enhancement that started taking effect January 1, 2019.
The maximum employer and employee contribution to the CPP for 2023 will be $3,754.45 each, up from $3,499.80 in 2022. The basic exemption amount will remain at $3,500.00.
