The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2022 will be $64,900—up from $61,600 in 2021.
The new ceiling was calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada. Contributors who earn more than $64,900 in 2022 are not required or permitted to make additional contributions to the CPP. However, the basic exemption amount for 2022 remains at $3,500.
The employee and employer contribution rates for 2022 will be 5.70%—up from 5.45% in 2021, and the self-employed contribution rate will be 11.40%—up from 10.90% in 2021. 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 2022 will be $3,499.80 each and the maximum self-employed contribution will be $6,999.60. The maximums in 2021 were $3,166.45 and $6,332.90 respectively.
Information provided by Discover Airdrie