2025 Maximum Pensionable Earnings

2025 Maximum Pensionable Earnings. Canada Revenue Agency announces maximum pensionable earnings and contributions for 2025 Eligibility Requirements: Must have contributed at least once and be 60. In 2025, the maximum pensionable earnings under CPP will be $71,300

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The second earnings ceiling, known as the year's additional maximum pensionable earnings, will be $81,200 in 2025, up from $73,200 in 2024 Earnings between the first and second earnings ceilings are subject to a second tranche of CPP contributions, also known as CPP2 contributions, as part of the plan's expansion that began in 2019.

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In 2024, the YAMPE is approximately 7% above the Year's Maximum Pensionable Earnings (YMPE) Maximum annual pensionable earnings This is the maximum pensionable earnings on which the employer and employee are required to contribute to the CPP in a year for their employment with that employer Basic exemption amount This is the annual amount on which CPP contributions are not required to be made.

Maximum pensionable earnings for 2023 announced Insurance Portal. There's also a second limit called the additional maximum pensionable earnings, which will be $81,200 in 2025 (up from $73,200 in 2024. The AMPE is calculated based on the average of the YMPA for the current year plus the four previous years.

Mathematics for Work and Everyday Life. rate, and maximum CPP contribution are summarized as follows: CPP Rates 2024 2025 Maximum pensionable earnings For the second additional Canada Pension Plan contribution (CPP2) that was introduced in 2024, the second earnings ceiling will be $81,200 (2024: $73,200).