CPP/QPP Pensionable Earnings Ceiling for 2024
- Posted:
Beginning in 2024, the maximum pensionable earnings under the Canada Pension Plan (“CPP”) will have two tiers. This will allow for the CPP to protect a higher portion of employees’ earnings.
The first tier of pensionable earnings limit will be $68,500 – up from $66,600 in 2023.
The second tier of pensionable earnings will have a limit of $73,200.
Contributors who earn more than $73,200 in 2024 are not required or permitted to make additional contributions to the CPP.
The basic exemption amount for 2024 remains at $3,500. Individuals who earn less than that amount do not need to contribute to the CPP.
The employee and employer CPP contribution rates for 2024 for the first tier will remain at 5.95% and the self-employed contribution rate for the first tier will remain at 11.90%.
The employee and employer CPP contribution rates for 2024 for the second tier will be 4% and the self-employed contribution rate will be 8%.
The maximum employer and employee CPP contributions for 2024 for the first tier will be $3,867.50 and an additional $188.00 for the second tier ($4,055.50 – combined) each, and the maximum self-employed CPP contributions will be $7,735.00 for the first tier and an additional $376 for the second tier ($8,111.00 – combined). The maximums in 2023 were $3,754.45 and $7,508.90, respectively.