CRA Increases CPP Maximum Pensionable Earnings and Contributions for 2024

​​The Canada Revenue Agency (CRA) announced that as of January 1, 2024, maximum pensionable earnings under the Canada Pension Plan (CPP) will increase to $68,500 — up from $66,600 in 2023. In addition, starting in 2024, a higher, second earnings ceiling of $73,200 will be implemented and used to determine additional CPP contributions (CPP2). As a result, pensionable earnings between $68,500 and $73,200 are subject to CPP2 contributions.

The updated amount were calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada.

Additional 2024 CPP details:

• For the CPP contribution rates for 2024, the employee and employer contribution rates are unchanged from 2023 at 5.95%. The self-employed contribution rate also remains unchanged at 11.90%.
• For the CPP2 contribution rates for 2024, employee and employer rates will be 4.00%, and the maximum contribution will be $188.00 each. The self-employed CPP2 contribution rate will be 8.00%, and the maximum self-employed contribution will be $376.00.
• The maximum employer and employee contribution to the plan for 2024 will be $3,867.50 each, up from $3,754.45 in 2023 and the maximum self-employed contribution will be $7,735.00, up from $7,508.90 in 2023.
  

• Contributors who earn more than $73,200 in 2024 are not required or permitted to make additional contributions to the CPP.