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].
Search Regulatory Updates
CRA Increases CPP Maximum Pensionable Earnings and Contributions for 2025
Nov 4, 2024, 06:00
by
Amanda Wilke
The Canada Revenue Agency (CRA) announced that as of January 1, 2025, maximum pensionable earnings under the Canada Pension Plan (CPP) will increase to $71,300 — up from $68,500 in 2024. In addition, in 2025, a higher, second earnings ceiling of $81,200 will be used to determine additional CPP contributions (CPP2). As a result, pensionable earnings between $71,300 and $81,200 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 2025 CPP details:
- For the CPP contribution rates for 2025, the employee and employer contribution rates are unchanged from 2024 at 5.95%. The self-employed contribution rate also remains unchanged at 11.90%.
- The maximum employer and employee contribution to the plan for 2025 will be $4,034.10 each, up from $3,867.50 in 2024 and the maximum self-employed contribution will be $8,068.20, up from $7,735.00 in 2024.
- For the CPP2 contribution rates for 2025, employee and employer rates remain unchanged at 4.00%, and the maximum contribution will be $396.00 each, up from $188.00 in 2024.
- The self-employed CPP2 contribution rate remains unchanged at 8.00%, and the maximum self-employed contribution will be $792.00, up from $376.00 in 2024.
Contributors who earn more than $81,200 in 2025 are not required or permitted to make additional contributions to the CPP.