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Canada Revenue Agency announces maximum pensionable earnings for 2017
OTTAWA, ONTARIO--(Marketwired - Nov. 1, 2016) - Canada Revenue Agency
The Canada Revenue Agency announced today that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2017 will be $55,300, up from $54,900 in 2016. The new ceiling was calculated using a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada.
Contributors who earn more than $55,300 in 2017 are not required or permitted to make additional contributions to the CPP.
The basic exemption amount for 2017 remains $3,500.
The employee and employer contribution rates for 2017 will remain unchanged at 4.95%. The self-employed contribution rate will remain unchanged at 9.9%.
The maximum employer and employee contribution to the CPP for 2017 will be $2,564.10 each. The maximum self-employed contribution will be $5,128.20. The maximums in 2016 were $2,544.30 and $5,088.60, respectively.
Quick facts
The CPP applies in every province and territory in Canada with the exception of Quebec, where the Quebec Pension Plan (QPP) provides similar pensions and benefits.
Every employed Canadian over the age of 18 must contribute to the CPP (QPP for those employed in Quebec) to qualify for a retirement pension.
Contributions to the CPP end when a contributor turns 70.
The CPP provides retirement, disability and survivor benefits and pensions to contributors and their families.
Associated links
- Canada Pension Plan (CRA)
- Canada Pension Plan (Service Canada)
- Types of Pension Plans (Service Canada)
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