CRA Increases CPP Maximum Pensionable Earnings for 2023

Published November 02, 2022

The Canada Revenue Agency (CRA) announced the 2023 maximum pensionable earnings under the Canada Pension Plan (CPP) will increase to $66,600 — up from $64,900 in 2022. The amount was calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada.

Additional 2023 CPP details:
  • Contributors who earn more than $66,600 in 2023 are not required or permitted to make additional contributions to the CPP.
  • The basic exemption amount for 2023 remains at $3,500.
  • The employee and employer contribution rates for 2023 will be 5.95% — up from 5.70% in 2022, and the self-employed contribution rate will be 11.90% — up from 11.40% in 2022. The increase in contribution rate is due to the continued implementation of the CPP enhancement.
  • The maximum employer and employee contribution to the plan for 2023 will be $3,754.45 each and the maximum self-employed contribution will be $7,508.90. The maximums in 2022 were $3,499.80 and $6,999.60.