CRA sets CPP maximum pensionable earnings for 2020

By Staff | November 1, 2019 | Last updated on September 15, 2023
1 min read
Canada Pension Plan CPP written on a sheet on an office table
© Vitaliy Vodolazskyy / 123RF Stock Photo

The Canada Revenue Agency announced on Friday that the maximum pensionable earnings under the Canada Pension Plan for 2020 will be $58,700, up from $57,400 in 2019.

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, the CRA said in a release.

Contributors who earn more than $58,700 in 2020 aren’t required or permitted to make additional contributions to the CPP. The basic exemption amount for 2019 remains at $3,500.

Employee and employer CPP contribution rates for 2020 will be 5.25%, up from 5.1% in 2019.

The self-employed contribution rate will be 10.5%, up from 10.2% in 2019. This increase is due to the CPP enhancement that was implemented on Jan. 1, 2019.

The maximum employer and employee contribution to the CPP for next year will be $2,898 each, and the maximum self-employed contribution will be $5,796. The maximums in 2019 were $2,748.90 and $5,497.80, respectively. staff


The staff of have been covering news for financial advisors since 1998.