THE maximum pensionable earnings under the Canada Pension Plan (CPP) for 2019 will be $57,400—up from $55,900 in 2018, the Canada Revenue Agency announced on Thursday. 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.
Contributors who earn more than $57,400 in 2019 are not permitted to make additional contributions to the CPP.
The basic exemption amount for 2019 remains $3,500.
The employee and employer contribution rates for 2019 will be 5.1%—up from 4.95% in 2018, and the self-employed contribution rate will be 10.2%—up from 9.9% in 2018. The increase in contribution rate is due to the CPP enhancement which will be implemented on January 1, 2019.
The maximum employer and employee contribution to the plan for 2019 will be $2,748.90 each and the maximum self-employed contribution will be $5,497.80. The maximums in 2018 were $2,593.80 and $5,187.60.
Where can you find more info?
- CPP contribution rates, maximums and exemptions (CRA)
- Canada Pension Plan (CRA)
- Canada Pension Plan enhancement (CRA)
- Canada Pension Plan (Service Canada)
- Types of Pension Plans (Service Canada)