The Canada Revenue Agency has announced that the Year’s Maximum Pensionable Earnings (YMPE) under the Canada Pension Plan (CPP) for 2025 will be $71,300 – up 4.1% from $68,500 in 2024. The second earnings ceiling, the Year’s Additional Maximum Pensionable Earnings (YAMPE), will be $81,200 – up 10.9% from $73,200 in 2024. The YAMPE will be used to determine additional CPP contributions (CPP2). As a result, pensionable earnings between $71,300 and $81,200 are subject to CPP2 contributions.
The employee and employer contribution rates for 2025 will be 5.95%, unchanged from 2024.
The maximum employer and employee contribution to the CPP for 2025 will be $4,034.10 each, up from $3,867.50 in 2024. The basic exemption amount will remain at $3,500.00.
Additional employee and employer contribution rates for 2025 will remain at 4.00%, on earnings above the YMPE, up to the YAMPE. The maximum additional employee and employer contribution to the CPP for 2025 will be $396.00 each, up from $188.00 in 2024.