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Sheryne Mecklai

Tax Partner at Manning Elliott Vancouver
by Sheryne Mecklai
November 15, 2022

New Maximum Pensionable Earnings for 2023

On November 1, 2022, the Canada Revenue Agency announced an increase to the maximum pensionable earnings under the Canada Pension Plan (CPP) and an increase to the contribution rates.  The increase will cost employees an additional $254.65 and will cost employers an additional $254.65 per employee. The increase will also apply to self employed individuals and cost them an additional $509.30.  Here are the details:

 20232022
Maximum Pensionable Earnings under CPP$66,600.00 $64,900.00 
Basic Exemption Amount$3,500.00 $3,500.00 
Employee and Employer Contribution Rates5.95%5.70%
Self-Employed Contribution Rate11.90%11.40%
Maximum Employer and Employee Contribution to Plan$3,754.45 $3,499.80 
Maximum Self-Employed Contribution$7,508.90  $6,999.60