CPP contribution limits increase in 2021

The maximum pensionable earnings under the CPP for 2021 will increase to $61,600.

The CRA has announced the CPP contribution limits for the upcoming year. The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2021 will increase to $61,600 (from $58,700). In addition, the employee and employer contribution rates for 2021 are set to rise to 5.45% (up from 5.25%) and the self-employed contribution rate will increase to 10.9% (from 10.5%).

The basic exemption amount for 2021 remains at $3,500.

The maximum employer and employee contribution to the plan for 2021 will be $3,166.45 each and the maximum self-employed contribution will be $6,332.90. The maximums in 2020 were $2,898.00 and $5,796.00.

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