The maximum pensionable earnings under the Canada Pension Plan is increasing to $68,500 in 2024, up from $66,600 in 2023.
The employee and employer contribution rates for 2024 will remain at 5.95 per cent and the maximum contribution will be $3,867.50 each, up from $3,754.45 in 2023. The self-employed contribution rate will remain at 11.9 per cent, with a maximum contribution of $7,735.00, up from $7,508.90 in 2023. The basic exemption amount for 2024 will remain at $3,500.
Read: CPP maximum pensionable earnings increasing to $66,600 in 2023
Starting in 2024, the Canada Revenue Agency will implement a higher, second earnings ceiling of $73,200, which will be used to determine additional CPP contributions, according to a notice on the CRA website. The secondary employee and employer contribution rates for 2024 will be four per cent, with a maximum contribution of $188 per person. The self-employed contribution rate will be eight per cent and the maximum self-employed contribution will be $376. Contributors won’t be required or permitted to make contributions on pensionable earnings above $73,200.
The CRA said the new ceilings were calculated in accordance with the CPP legislation and take into account the growth in average weekly wages and salaries in Canada.
Read: CPP maximum pensionable earnings rising to $64,900 in 2022