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.
Employee and employer contribution rates for 2022 will be 5.7 per cent -- up from 5.45 per cent in 2021, and the self-employed contribution rate will be 11.4 per cent -- up from 10.9 per cent 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.