The maximum amount you can earn under the Canada Pension Plan (CPP) before contributions stop will rise to $68,500 in 2024, up from $66,600. The amount you can earn without making any contributions stays the same at $3,500.
A new earnings limit is also set for 2024: $73,200. This is for the additional CPP contributions, affecting earnings between $68,500 and $73,200.
These changes are based on how average wages in Canada have increased.
CPP Contribution Details
For 2024, employees and employers will still pay 5.95% into CPP, but the most they will each pay is $3,867.50, which is more than in 2023. Self-employed people will continue to pay 11.90%, up to $7,735.00.
A new rate for CPP2 contributions is set at 4.00% for employees and employers, with a maximum of $188.00 each. Self-employed individuals will pay 8.00%, up to $376.00.
No one needs to pay contributions on earnings more than $73,200.
Key Points: 2024 CPP Changes
| CPP Component | 2024 Key Points |
|---|---|
| Maximum Pensionable Earnings | Rises to $68,500 from $66,600 |
| Basic Exemption Amount | Remains at $3,500 |
| Second Earnings Ceiling (CPP2) | New limit at $73,200 |
| CPP Contribution Rates | Stays at 5.95% for employees/employers |
| Maximum CPP Contribution | Increases to $3,867.50 each for employees/employers |
| Self-Employed Contribution Rate | Remains at 11.90%, with a maximum of $7,735.00 |
| CPP2 Contribution Rates | 4.00% for employees/employers, 8.00% for self-employed |
| Maximum CPP2 Contribution | $188.00 for employees/employers, $376.00 for self-employed |