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2019 CANADA PENSION PLAN (CPP) MAXIMUM PENSIONABLE EARNINGS

| January 15, 2019

MAXIMUM PENSIONABLE EARNINGS FOR 2019:

The Canada Revenue Agency announced the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2019. The rate will be increased from 4.95% to 5.10% for employee and employer, and from 9.9% to 10.2% for self-employed. Contributors who earn more than $57,400 in 2019 (2018: $55,900) are not required or permitted to make additional contributions to the CPP.

The increased in rate will have a maximum impact (per person) of $155.10 for employee and employer, and a maximum impact of $310.20 for a self-employed individual.  

Below is the comparison: 

  2019  2018  2017  2016  2015 
Maximum Pensionable Earnings  $57,400  $55,900  $55,300  $54,900  $53,600 
Basic Exemption  $3,500  $3,500  $3,500  $3,500  $3,500 
 
Maximum employer contribution  2,748.90  $2,593.80  $2,564.10  $2,544.30  $2,479.95 
Contribution rate  5.10%  4.95%  4.95%  4.95%  4.95% 
 
Maximum employee contribution  2,748.90  $2,593.80  $2,564.10  $2,544.30  $2,479.95 
Contribution rate  5.10%  4.95%  4.95%  4.95%  4.95% 
 
Maximum self-employed contribution  $5,497.80  $5,187.60  $5,128.50  $5,088.60  $4,959.90 
Contribution rate  10.20%  9.90%  9.90%  9.90%  9.9% 

(This posting is for personal educational purposes only.  Please consult your tax advisor for your specific situation).

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