The Canada Revenue Agency (CRA) has recently announced the maximum pensionable earnings for 2022 will be $64,900, up from $61,600 in 2021, which represents an increase of over 5%.
Contributors who earn more than $64,900 in 2022 are not required or permitted to make additional contributions to the Canada Pension Plan (CPP).
The basic exemption amount for 2022 remains as $3,500.
The CRA announced the increase in YMPE reflects the growth in average Canadian weekly wages and salaries, calculated using a CPP legislated formula.
The 2022 contribution rate for employees and employers has increased to 5.70%, an increase of .25% (5.45% in 2021). The 2022 contribution rate for self-employed has increased to 11.40% from 10.90% in 2021.
The 2022 maximum employer and employee contribution has increased to $3,499.80 from $3,166.45 in 2021.
The 2022 maximum self-employed contribution has increased to $6,999.60 from $6,332.90 in 2021.