Regulatory Updates
Regulatory Updates provide quick access to employee benefit regulations, rulings and other guidance released by governmental agencies in the U.S. and Canada.
New updates to this page may be included in Today’s Headlines which is emailed to International Foundation members each business day. Inquiries regarding these updates should be directed to the Benefits Knowledge Center at the International Foundation at (888) 334-3327, option 5 or [email protected].
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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.