2019 Canada Pension Plan Contribution Rates

January 23, 2019 Published by

Canada Pension Contribution Rates

The CPP contribution rates and maximums for 2019 are as follows:

Maximum Pensionable Earnings: $ 57,400.00

Annual Basic Exemption: $ 3,500.00

Maximum Contributory Earnings: $ 53,900.00

Contribution Rate:  5.10 %
(Employee and Employer)

Maximum Employee Contribution: $ 2,748.90

Maximum Employer Contribution: $ 2,748.90

The Canada Revenue Agency (“CRA”) will gradually increase the contribution rates to 5.95%. The CPP rate will consist of the old 4.95% rate plus an extra rate called the “first additional contribution rate”.

CPP Contribution Rates by Year

The new contribution rates are:

Year Employee Rate Employer Rate 
2019 5.10% 5.10% 
2020 5.25% 5.25% 
2021 5.45% 5.45% 
2022 5.70% 5.70% 
2023 and Later Years 5.95% 5.95% 

 

Contribution Rates in Canada in 2024

Commencing in 2024, the CRA will implement a new second additional contribution rate of 4% each for employers and employees or pensionable earnings between the yearly maximum pensionable earnings and a new upper limit.

Employees will continue to receive a non-refundable tax credit for the base contribution (4.95%). A tax deduction will be available for contributions at the additional rates. Employers will continue to receive a full deduction for all CPP contributions.

Visit the Canada Revenue Agency website for more information regarding CPP contribution rate changes. Contact the professional accounting team at Hogg, Shain & Scheck to learn about our tax services.