Canada Revenue Agency announces maximum pensionable earnings for 2022
CRA SOURCE ARTICLE
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.
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.
More Information
Canada Pension Plan (CRA)
Canada Pension Plan enhancement (CRA)
CPP contribution rates, maximums and exemptions (CRA)
Canada Pension Plan (Service Canada)
Types of Pension Plans (Service Canada)
You can learn more about CPP by visiting the CPP Guide on the CRA website or by scheduling a free consultation with us.