Tax Tip - Canada Revenue Agency announces maximum pensionable earnings and contributions for 2024

OTTAWA, ON, Nov. 1, 2023 /CNW/ -

What's new for January 1, 2024?

The maximum pensionable earnings under the Canada Pension Plan (CPP) will be $68,500—up from $66,600 in 2023. The basic exemption amount for 2024 remains at $3,500.

Starting in 2024, a higher, second earnings ceiling of $73,200 will be implemented and used to determine second additional CPP contributions (CPP2). As a result, pensionable earnings between $68,500 and $73,200 are subject to CPP2 contributions.

These new ceilings were calculated in accordance with the CPP legislation and take into account the growth in average weekly wages and salaries in Canada.

CPP contribution rates and amounts

Employee and employer CPP contribution rates for 2024 remain at 5.95%, and the maximum contribution will be $3,867.50 each—up from $3,754.45 in 2023. The self-employed CPP contribution rate remains at 11.90%, and the maximum contribution will be $7,735.00—up from $7,508.90 in 2023.

Employee and employer CPP2 contribution rates for 2024 will be 4.00%, and the maximum contribution will be $188.00 each. The self-employed CPP2 contribution rate will be 8.00%, and the maximum self-employed contribution will be $376.00.

Contributors are not required or permitted to make contributions on pensionable earnings above $73,200.

For more information, please visit the following pages on Canada.ca

The Canada Pension Plan enhancement – Businesses, individuals, and self-employed: what it means for you - Canada.ca

Get ready to make deductions

Types of Pension Plans 

Contacts

Media Relations
Canada Revenue Agency
613-948-8366
[email protected]

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SOURCE Canada Revenue Agency