Canada Pension Plan (CPP)
The Canada Pension Plan (CPP) is a contributory, earnings-related social insurance program that provides income replacement upon retirement, disability, or death.
The CPP provides three primary categories of benefits:
- Retirement Pension – Monthly taxable income after retirement
- Disability Benefits – Support for contributors unable to work
- Survivor Benefits – Benefits for surviving spouses and children
CPP Contribution Amounts
| Year | Maximum Pensionable Earnings | Basic Exemption | Max Contributory Earnings | Employee Rate | Max Employee Contribution | Max Employer Contribution |
|---|---|---|---|---|---|---|
| 2026 | $74,600 | $3,500 | $71,100 | 5.95% | $4,230.45 | $4,230.45 |
| 2025 | $71,300 | $3,500 | $67,800 | 5.95% | $4,034.10 | $4,034.10 |
| 2024 | $68,500 | $3,500 | $65,000 | 5.95% | $3,867.50 | $3,867.50 |
Additional CPP Contributions (CPP 2)
| Year | Additional Max Pensionable Earnings | Contribution Rate | Max Employee & Employer | Max Self-Employed |
|---|---|---|---|---|
| 2026 | $85,000 | 4% | $416 | $832 |
| 2025 | $81,200 | 4% | $396 | $792 |
| 2024 | $73,200 | 4% | $188 | $376 |
Official References
Note: CPP contribution rates and thresholds are subject to change. Always confirm with official CRA publications for compliance.