2019 Canada Pension Plan Contribution Rates
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|
|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.