OTTAWA, Nov. 4, 2019 /CNW Telbec/ - The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2020 will be $58,700—up from $57,400 in 2019. 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 $58,700 in 2020 are not required or permitted to make additional contributions to the CPP.
The basic exemption amount for 2020 remains at $3,500.
The employee and employer contribution rates for 2020 will be 5.25%—up from 5.1% in 2019, and the self-employed contribution rate will be 10.5%—up from 10.2% in 2019. The increase in contribution rate is due to the CPP enhancement which was implemented on January 1, 2019.
The maximum employer and employee contribution to the plan for 2020 will be $2,898.00 each and the maximum self-employed contribution will be $5,796.00. The maximums in 2019 were $2,748.90 and $5,497.80
WHERE CAN YOU FIND MORE INFORMATION?
- 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)
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SOURCE Canada Revenue Agency
For further information: Media Relations, Canada Revenue Agency, 613-948-8366, [email protected]