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These tables outline the annual money purchase (MP), defined benefit (DB), registered retirement savings plan (RRSP), deferred profit sharing plan (DPSP), advanced life deferred annuity (ALDA), tax-free savings account (TFSA) limits, year's maximum pensionable earnings (YMPE) and the year's additional maximum pensionable earnings (YAMPE).
- Overview
- Where can you find more information?
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 continued implementation of the CPP enhancement.
•CPP contribution rates, maximums and exemptions (CRA)
•Canada Pension Plan (CRA)
•Canada Pension Plan enhancement (CRA)
•Canada Pension Plan (Service Canada)
The year’s maximum pensionable earnings (YMPE) is the amount of earnings, defined by the Canada Pension Plan, on which benefits from the Canada Pension Plan and Quebec Pension Plan are based. For the current and historical limits, please visit Annual limits .
Jul 2, 2020 · Over 2024 and 2025, the maximum annual pensionable earnings will be increased by 14% in addition to the usual rate-of-inflation increases. The estimated earnings limit will increase from $66,600 in 2023 to $72,400 in 2024 then to $79,400 in 2025. Canada Pension Plan.
Feb 17, 2021 · The base CPP retirement benefit replaces 25% of career average earnings up to a maximum level of eligible earnings (year's maximum pensionable earnings or YMPE), which approximates the average Canadian wage ($58,700 in 2020).
Dec 6, 2023 · For the year 2021, the maximum pensionable earnings limit is $61,600. This means that any income earned above this limit will not be subject to CPP contributions. The CPP is administered by the Government of Canada, in collaboration with the provinces and territories.
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Jan 2, 2024 · Your RRSP contribution limit for 2024 is 18% of earned income you reported on your tax return in the previous year, up to a maximum of $31,560. For 2023, the dollar limit was $30,780. For 2025, the dollar limit will be $32,490. If you have a company pension plan, your RRSP contribution limit is reduced – see the last bullet point below for details.
