New Maximum Pensionable Earnings for 2023
On November 1, 2022, the Canada Revenue Agency announced an increase to the maximum pensionable earnings under the Canada Pension Plan (CPP) and an increase to the contribution rates. The increase will cost employees an additional $254.65 and will cost employers an additional $254.65 per employee. The increase will also apply to self employed individuals and cost them an additional $509.30. Here are the details:
| 2023 | 2022 | |
| Maximum Pensionable Earnings under CPP | $66,600.00 | $64,900.00 |
| Basic Exemption Amount | $3,500.00 | $3,500.00 |
| Employee and Employer Contribution Rates | 5.95% | 5.70% |
| Self-Employed Contribution Rate | 11.90% | 11.40% |
| Maximum Employer and Employee Contribution to Plan | $3,754.45 | $3,499.80 |
| Maximum Self-Employed Contribution | $7,508.90 | $6,999.60 |