Maximum pensionable earnings for 2019 and other updates

The Canada Revenue Agency has announced that the maximum pensionable earnings under the CPP for 2019 will be $57,400, up from $55,900 in 2018.

Contributors who earn more than $57,400 won’t be permitted to make additional contributions to the CPP. The basic exemption amount for 2019 remains $3,500.

The RRSP dollar limit, another indexed figure, has also been updated for 2019, and will be $26,500—up from $26,230 this year.

The TFSA limit for 2019 will be officially announced later this year.

Further details

Employee and employer CPP contribution rates for 2019 will be 5.1%, up from 4.95% in 2018.

Meanwhile, the self-employed contribution rate will be 10.2%, up from 9.9% in 2018. This increase is due to the CPP enhancement that will be implemented on Jan. 1.

The maximum employer and employee contribution to the CPP for next year will be $2,748.90 each, and the maximum self-employed contribution will be $5,497.80. The maximums in 2018 were $2,593.80 and $5,187.60, respectively.

Staff

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