Canada’s Maximum Pensionable Income and Contribution Limits

Updated on June 21, 2024

Explore Canada’s Maximum Pensionable Earnings: Updates on Income and Contributions. Learn about recent changes for long-term CPP benefits effective with the new fiscal year. Find detailed information on modifications in this article.

Maximum Pensionable Earnings in Canada

The Canadian Federal Government sets an annual minimum earning limit, influencing pension plan contributions tied to the maximum pension limit. This maximum amount, known as Yearly Maximum Pensionable Earnings, represents the highest CPP investment an individual can make. Employers deduct CPP contributions from salaries, with the employer’s share submitted to the CRA. Employers must make minimum contributions for their employees’ benefits. Self-employed individuals are responsible for both contributions. For the year 2023, pensionable earnings were $66,600, increasing to $68,000 in 2024, effective January 1.

What is the Maximum Pensionable Income?

Several changes have been introduced to the CPP structure, including the incorporation of a second tier in the pension plan. Deposits will now be made in two installments. With the addition of this second segment, the overall maximum limit has been extended. Each tier has its pensionable limit, with the first tier capped at $68,000 and the second tier at $74,500.

The limits for the new segment were determined by considering the increase in wages and workers’ yearly incomes. Individuals earning below $75,000 qualify for the savings benefits, with those exceeding this threshold ineligible. The basic exception amount has been raised to $3,500 with the introduction of the new segment.

Maximum Pensionable Income Overview

Article Name

Maximum Pensionable Earnings in Canada



Administration Responsible

Canada Revenue Agency

Contribution Rate


Maximum CPP

USD 68500

Basic Exception Amount


Official Website

What is the Maximum Pensionable Income Contribution?

Individual contributions are influenced by the work environment and minimum salary. In corporate settings, contributions are split into two segments, with employers covering a minimum for workers’ CPP benefits. 40 percent of the contribution is the employers’ responsibility.

For employees, the contribution varies based on rank and position. Self-employed individuals are responsible for both contributions, with a higher exception limit.

In the first installment, the employees’ and employers’ contribution rate is 5.43 percent, and for self-workers, it is 11.04 percent. Maximum monthly contributions are $3,864 for corporate and $7,735 for self-employed.

In the second installment, the employees’ and employers’ contribution is 4 percent, with a minimum saving limit of $188. Self-workers contribute 8 percent, with a maximum of $376.50 per month.

Note that the exception limit is higher for self-employed workers, benefiting them post-retirement, despite bearing the burden of both contributions.

CPP Contribution Rate 2024

As the country’s economy undergoes changes, there have been improvements in benefits. These adjustments include a 1 percent increase in the contribution rate for corporate employees and a 2 percent increase for self-employed individuals. The table below illustrates the consistent growth in the CPP margin over the past few years.






Maximum Contribution Of Corporate Workers

Maximum Contribution Of Self Employed



































$2749 $5498

Applicants need to include an additional $377 under the second segment of the CPP. The total contribution limit for both installments should not surpass $76,500. This enhancement will result in an increased pension, along with additional benefits.


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