CRA releases YMPE for 2020By The IJ Staff | November 06 2019 02:37PM
The Canada Revenue Agency (CRA) has announced that the maximum pensionable earnings for 2020 under the Canada Pension Plan (CPP) will be increased from $57,400 to $58,700.
The basic exemption amount for 2020 will remain $3,500.
In an announcement, the CRA said the increase reflects the growth in average weekly wages and salaries in Canada, determined using a CPP legislated formula. Contributors who earn more than $58,700 cannot make additional contributions to the CPP.
The employee and employer contribution rates for 2020 will be 5.25 per cent —up from 5.1 per cent in 2019, and the self-employed contribution rate will be 10.5 per cent — up from 10.2 per cent in 2019. “The increase in contribution rate is due to the CPP enhancement which was implemented on Jan. 1, 2019,” said the CRA.
The maximum employer and employee contribution for 2020 will be $2,898.00, up from $2,748.90 in 2019. The maximum self-employed contribution for 2020 will be $5,796.00, up from $5,497.80 in 2019.