Tax Tip - Canada Revenue Agency announces maximum pensionable earnings and contributions for 2025 Français
OTTAWA, ON, Nov. 1, 2024 /CNW/ -
What's new?
In 2024, a second earnings ceiling was introduced, the Year's Additional Maximum Pensionable Earnings (YAMPE). The YAMPE is used to determine second additional Canada Pension Plan contributions (CPP2). In 2024, the YAMPE is approximately 7% above the Year's Maximum Pensionable Earnings (YMPE). In 2025 and every year after, the YAMPE will be approximately 14% above the YMPE.
These amounts are calculated in accordance with the Canada Pension Plan (CPP) legislation and take into account the growth in average weekly wages and salaries in Canada. 2025 is the last year of legislative updates for the Canada Pension Plan enhancement.
CPP contribution rates and amounts
The 2025 YMPE will be $71,300.00—up from $68,500 in 2024. The basic exemption amount for 2025 will remain at $3,500.00.
Employee and employer CPP contribution rates for 2025 remain at 5.95%, and the maximum contribution will be $4,034.10 each—up from $3,867.50 in 2024. The self-employed CPP contribution rate remains at 11.90%, and the maximum contribution will be $8,068.20—up from $7,735.00 in 2024.
CPP2 contribution rates and amounts
The 2025 YAMPE will be $81,200.00—up from $73,200.00 in 2024. Pensionable earnings between $71,300.00 and $81,200.00 are subject to CPP2 contributions.
Employee and employer CPP2 contribution rates for 2025 will remain at 4.00%, and the maximum contribution will be $396.00 each—up from $188.00 in 2024. The self-employed CPP2 contribution rate will remain at 8.00%, and the maximum contribution will be $792.00—up from $376.00 in 2024.
For more information, please visit the following pages on Canada.ca
Contacts
Media Relations
Canada Revenue Agency
613-948-8366
[email protected]
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SOURCE Canada Revenue Agency
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