2019 Canada Pension Plan Contribution Rates
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What is the Maximum Canadian Pension Plan Contribution?
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 CCP Employee Contribution: $ 2,748.90
Maximum Employer CCP Contribution: $ 2,748.90
The Canada Revenue Agency (“CRA”) will gradually increase the Canadian Pension Plan 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 CPP 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.