OTTAWA, ON, Nov. 3, 2020 /CNW/ - The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2021 will be $61,600—up from $58,700 in 2020. 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 $61,600 in 2021 are not required or permitted to make additional contributions to the CPP.
The basic exemption amount for 2021 remains at $3,500.
The employee and employer contribution rates for 2021 will be 5.45%—up from 5.25% in 2020, and the self-employed contribution rate will be 10.9%—up from 10.5% in 2020. The increase in contribution rate is due to the continued implementation of the CPP enhancement.
The maximum employer and employee contribution to the plan for 2021 will be $3,166.45 each and the maximum self-employed contribution will be $6,332.90. The maximums in 2020 were $2,898.00 and $5,796.00.
Associated Links
Canada Pension Plan (CRA)
Canada Pension Plan enhancement (CRA)
CPP contribution rates, maximums and exemptions (CRA)
Canada Pension Plan (Service Canada)
Types of Pension Plans (Service Canada)
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SOURCE Canada Revenue Agency
Contacts: For general inquiries: Canada Revenue Agency, 1-800-959-8281; For reporters: Media Relations, 613-948-8366, [email protected]
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