The Canada Revenue Agency has announced that the Year’s Maximum Pensionable Earnings under the Canada Pension Plan (CPP) for 2024 will be $68,500 – up 2.9% from $66,600 in 2023. 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 2024 will be 5.95%, unchanged from 2023.
The maximum employer and employee contribution to the CPP for 2024 will be $3,867.50 each, up from $3,754.45 in 2023. The basic exemption amount will remain at $3,500.00.
Effective January 1, 2024, as part of the CPP enhancement, CRA is implementing a second earnings ceiling at $73,200, known as the Year’s Additional Maximum Pensionable Earnings (YAMPE). Additional employee and employer contribution rates for 2024 will be 4.00%, on earnings above the YMPE, up to the YAMPE. The maximum additional employee and employer contribution to the CPP for 2024 will be $188 each.
