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2020 CANADA PENSION PLAN (CPP) MAXIMUM PENSIONABLE EARNINGS

| December 5, 2019

For 2020, the maximum pensionable earnings under the Canada Pension Plan (CPP), for employee and employer, has increased to 5.25% (2019: 5.10%) and 10.50% (2019: 10.20%) for self-employed. Contributors who earn more than $58,700 in 2020 (2019: $57,400) are not required or permitted to make additional contributions to the CPP.  

The increase in rate will have a maximum impact (per person) of $149.10 (2019: $155.10) for employee and employer, and a maximum impact of $298.20 (2019: $310.20) for a self-employed individual.   

Below is the comparison for the last 3 years: 

 2020 2019 2018 
Maximum Pensionable Earnings $58,700 $57,400 $55,900 
Basic Exemption $3,500 $3,500 $3,500 
  EMPLOYER CONTRIBUTION
Maximum employer contribution $2,898.00 $2,748.90 $2,593.80 
Contribution rate 5.25% 5.10% 4.95% 
  EMPLOYEE CONTRIBUTION
Maximum employee contribution $2,898.00 $2,748.90 $2,593.80 
Contribution rate 5.25% 5.10% 4.95% 
  SELF-EMPLOYED CONTRIBUTION
Maximum self-employed contribution $5,796.00 $5,497.80 $5,187.60 
Contribution rate 10.50% 10.20% 9.9% 

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