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Canada Pension Plan and Quebec Pension Plan Rates
Canada Pension Plan (CPP) Contribution Rates
CPP Contributions on the Tax Return
Year's Maximum Pensionable Earnings (YMPE)
2024 and Later Year's Additional Maximum Pensionable Earnings (YAMPE)
TaxTips.ca Tax Calculators and CPP + Enhanced CPP Contributions
Government of Canada CPP Contribution Resources
Quebec Pension Plan (QPP) Contribution Rates
Canada Pension Plan (CPP) Contribution Rates
YMPE = Year's Maximum Pensionable Earnings
YAMPE = Year's Additional Maximum Pensionable Earnings
The estimate of 2025 YMPE by Jason Yee, CFA, P.Eng, of Finepoint Solutions Inc. is $71,300. This would result in YAMPE of $81,200 (1.14 x $71,300), with rounding done in the same manner as the YMPE. These amounts were confirmed by CRA's November 1, 2024 news release.
The total maximum for 2025 is $4,430.10 for an employee and $8,860.20 for a self-employed person. The self-employed maximum is always 2x the employee/employer maximum.
| Year | YMPE | CPP Rate(1) |
Employee/ Employer Maximum |
YAMPE | CPP2 Rate |
Employee/ Employer Maximum |
Total Maximum Employee/ Employer |
Total Maximum Self- Employed |
| 2025 | $71,300 | 5.95% | $4,034.10 | $81,200 | 4% | $396 | $4,430.10 | $8,860.20 |
| 2024 | 68,500 | 5.95% | 3,867.50 | 73,200 | 4% | 188 | 4,055.50 | 8,111.00 |
2024 YAMPE = 107% x YMPE. In 2025, YAMPE = 114% x YMPE.
The 2025 CPP2 contribution of $396 = ($81,200 - $71,300) x 4%.
The 2024 CPP2 contribution of $188 = ($73,200 - $68,500) x 4%.
| Year | Maximum Pensionable Earnings (YMPE) |
Rate(1) | Employee/ Employer Maximum |
Self- Employed Maximum |
| 2023 | $66,600 | 5.95% | $3,754.45 | $7,508.90 |
| 2022 | 64,900 | 5.70% | 3,499.80 | 6,999.60 |
| 2021 | 61,600 | 5.45% | 3,166.45 | 6,332.90 |
| 2020 | 58,700 | 5.25% | 2,898.00 | 5,796.00 |
| 2019 | 57,400 | 5.10% | 2,748.90 | 5,497.80 |
| 2018 | 55,900 | 4.95% | 2,593.80 | 5,187.60 |
| 2017 | 55,300 | 4.95% | 2,564.10 | 5,128.20 |
| 2016 | 54,900 | 4.95% | 2,544.30 | 5,088.60 |
| 2015 | 53,600 | 4.95% | 2,479.95 | 4,959.90 |
| 2014 | 52,500 | 4.95% | 2,425.50 | 4,851.00 |
| 2013 | 51,100 | 4.95% | 2,356.20 | 4,712.40 |
| 2012 | 50,100 | 4.95% | 2,306.70 | 4,613.40 |
| 2011 | 48,300 | 4.95% | 2,217.60 | 4,435.20 |
| 2010 | 47,200 | 4.95% | 2,163.15 | 4,326.30 |
| 2009 | 46,300 | 4.95% | 2,118.60 | 4,237.20 |
| 2008 | 44,900 | 4.95% | 2,049.30 | 4,098.60 |
| 2007 | 43,700 | 4.95% | 1,989.90 | 3,979.80 |
Note:
 | The basic annual exemption is $3,500. |
| The employee contribution amount is calculated based on the pensionable earnings less the $3,500 exemption. |
| The employer contribution is equal to the employee contribution. |
| A self employed person pays the employee + employer amounts, so pays 2x the employee amount. |
(1)CPP Contributions on the Tax Return
The 2023 rate of 5.95% (2022 5.70%) is broken down into 2 parts on the tax return, with each part treated differently for the employee:
| 4.95% + 1.00% for 2023, |
| 4.95% + 0.75% for 2022 |
| 4.95% + 0.50% for 2021 |
a. 4.95%: The employee maximum for the non-refundable tax credit for CPP premiums:
- 2023 is ($66,600 - $3,500) x 4.95% = $3,123.45.
- 2022 is ($64,900 - $3,500) x 4.95% = $3,039.30.
- 2021 is ($61,600 - $3,500) x 4.95% = $2,875.95.
- 2020 is ($58,700 - $3,500) x 4.95% = $2,732.40.
b. 1.00% (2022 0.75%, 2021 0.50%, 2020 0.30%): The "additional contribution" for the Enhanced Canada Pension Plan, which is allowed as a deduction from income, not as a tax credit:
- of the 2023 maximum, $3,754.45 - $3,123.45 = $631.00 (also = ($66,600 - $3,500) x 1.00%)
- of the 2022 maximum, $3,499.80 - $3,039.30 = $460.50 (also = ($64,900 - $3,500) x 0.75%)
- of the 2021 maximum, $3,166.45 - $2,875.95 = $290.50 (also = ($61,600 - $3,500) x 0.50%)
- of the 2020 maximum, $2,898.00 - $2,732.40 = $165.60 (also = ($58,700 - $3,500) x 0.30%)
The employer portion of CPP contributions is tax-deductible for the employer.
For a self-employed individual, half of their contributions are considered their employee portion, and the other half is their employer portion. Their employer portion is tax-deductible, as is the "additional contribution" part of their employee contribution.
Year's Maximum Pensionable Earnings (YMPE)
The YMPE, or "earnings ceiling", is increased for indexation each year based on the "Wage Measure", which is Table 14-10-0203-01 Employment and average weekly earnings (including overtime) for all employees by province and territory, monthly, not seasonally adjusted as published by Statistics Canada. The indexation factor for 2025 is calculated as:
average of 12 months Wage Measure for the 12 months ending Jun 30, 2024
divided by
average of 12 months Wage Measure for the 12 months ending Jun 30, 2023
= indexation factor
The indexation factor is multiplied by the previously calculated but unrounded YMPE to get the YMPE for the coming year. The result is then rounded, and if the result is not a multiple of $100, the result is rounded down to the next multiple of $100 below the result.
However, if the above calculation results in a decrease to the YMPE, the result will be increased to the YMPE from the preceding year, so that the YMPE will not be reduced.
Jason Yee, CFA, P.Eng. of Finepoint Solutions Inc. has created a paper to help everyone understand the calculation of the YMPE. See Real-time Estimation Method for the Year's Maximum Pensionable Earnings (YMPE) - scroll down to find this.
Enhanced Canada Pension Plan
Starting in 2019, there is an additional contribution of 0.15% x the YMPE, which is included in the 5.10% above. This is called the "first additional contribution" for the Enhanced CPP. On the tax return, the additional contribution will be allowed as a deduction. Employers will also pay the 0.15% additional contribution. Self-employed will pay both the employee and employer additional contributions, and will be able to deduct 100% of the additional contribution on their tax return. The first additional contribution will increase each year, so that in 2023 the total rate will be 5.95%, as follows:
2019 0.15% +4.95% = 5.10% total rate
2020 0.30% +4.95% = 5.25%
2021 0.50% +4.95% = 5.45%
2022 0.75% +4.95% = 5.70%
2023 1.00% +4.95% = 5.95%
Year's Additional Maximum Pensionable Earnings (YAMPE)
In 2024 there is a Year's Additional Maximum Pensionable Earnings (YAMPE, also called the 2nd earnings ceiling) calculated, which will be 107% x the YMPE.
In 2025 and later years the YAMPE will be 114% x the YMPE. If the result is not a multiple of $100, the result is rounded down to the next multiple of $100 below the result.
The contribution amount (2nd additional contribution) will be 4% of the difference between the YAMPE and the YMPE. Self-employed will pay 8%.
The 2nd additional contribution will also be deductible from income.
Contributors who make more than the YAMPE are not required or permitted to make additional CPP contributions.
TaxTips.ca Tax Calculators and CPP + Enhanced CPP Contributions
In the Detailed Canadian Income Tax Calculator for 2019 and later years, the total CPP + Enhanced CPP for employment income is shown near the bottom of the calculator, in the calculation of Total taxes, clawbacks, CPP/EI premiums. Since the CPP on self-employment income is calculated on the tax return and remitted in the same manner as income tax, it is shown separately and included in the total payable by the taxpayer.
TaxTips.ca Resources
Who Has to Pay CPP or QPP Premiums?
Payroll Tax Calculators for different methods of checking payroll deductions, and an online payroll calculator which employers can use for calculating payroll deductions.
Self-employed and filing a tax return more than 4 years late?
Canada Pension Plan (CPP) Retirement Benefit Rules
Government of Canada CPP Contribution Resources
Canada Pension Plan Enhancement: Second CPP Contribution - webinar to help businesses navigate this issueCanada Pension Plan Enhancement
Canada's Finance Ministers Agree to Strengthen Canada Pension Plan - June 20, 2016.
T4032 Payroll Deduction Tables - for calculating payroll deductions
CPP contribution rates, maximums and exemptions for rates from current and earlier years.
Quebec Pension Plan (QPP) Contribution Rates
YMPE = Year's Maximum Pensionable Earnings
YAMPE = Year's Additional Maximum Pensionable Earnings
The self-employed maximum is always 2x the employee/employer maximum.
| Year | YMPE | QPP Rate |
Employee/ Employer Maximum |
YAMPE | QPP2 Rate |
Employee/ Employer Maximum |
Total Maximum Employee/ Employer |
Total Maximum Self- Employed |
| 2025 | $71,300 | 6.40% | $4,339.20 | $81,200 | 4% | $396 | $4,735.20 | $9,470.40 |
| 2024 | 68,500 | 6.40% | 4,160.00 | 73,200 | 4% | 188 | 4,348.00 | 8,696.00 |
2025 YAMPE = 114% x YMPE.
2024 YAMPE = 107% x YMPE.
The 2025 QPP2 contribution of $396 = ($81,200 - $71,300) x 4%.
The 2024 QPP2 contribution of $188 = ($73,200 - $68,500) x 4%.
| Year | Maximum Pensionable Earnings (YMPE) |
QPP Rate |
Employee/ Employer Maximum |
Self- Employed Maximum |
| 2023 | $66,600 | 6.40% | $4,038.40 | $8,076.80 |
| 2022 | 64,900 | 6.15% | 3,776.10 | 7,552.20 |
| 2021 | 61,600 | 5.90% | 3,427.90 | 6,855.80 |
| 2020 | 58,700 | 5.70% | 3,146.40 | 6,292.80 |
| 2019 | 57,400 | 5.55% | 2,991.45 | 5,982.90 |
| 2018 | 55,900 | 5.40% | 2,829.60 | 5,659.20 |
| 2017 | 55,300 | 5.40% | 2,797.20 | 5,594.40 |
| 2016 | 54,900 | 5.325% | 2,737.05 | 5,474.10 |
| 2015 | 53,600 | 5.250% | 2,630.25 | 5,260.50 |
| 2014 | 52,500 | 5.175% | 2,535.75 | 5,071.50 |
| 2013 | 51,100 | 5.100% | 2,427.60 | 4,855.20 |
| 2012 | 50,100 | 5.025% | 2,341.65 | 4,683.30 |
| 2011 | 48,300 | 4.95% | 2,217.60 | 4,435.20 |
| 2010 | 47,200 | 4.95% | 2,163.15 | 4,326.30 |
| 2009 | 46,300 | 4.95% | 2,118.60 | 4,237.20 |
| 2008 | 44,900 | 4.95% | 2,049.30 | 4,098.60 |
| 2007 | 43,700 | 4.95% | 1,989.90 | 3,979.80 |
Note: The basic annual exemption is $3,500.
Enhanced Quebec Pension Plan
Quebec will enhance the QPP in the same manner to which the CPP is being enhanced. The resulting rates will be:
2019 0.15% +5.40% = 5.55% total rate
2020 0.30% +5.40% = 5.70%
2021 0.50% +5.40% = 5.90%
2022 0.75% +5.40% = 6.15%
2023 1.00% +5.40% = 6.40%
As with the CPP, the additional contributions to the QPP are a deduction on the tax return, while the 5.40% contribution will be allowed as a non-refundable tax credit.
The QPP will use the same YMPE and YAMPE as the CPP, and it will be increased in the same manner, using the same 2nd additional contribution rate, as the CPP.
Quebec Resources re QPP
Enhancement of the Quebec Pension PlanSource deductions and contributions - for calculating payroll deductions
TP-1015.G-V - Guide for Employers: Source Deductions and Contributions
Maximum pensionable salary or wages and QPP contribution rate
Quebec Pension Plan - information about retirement pension, disability pension, and survivors' benefits
Revised: November 01, 2024