The year’s maximum pensionable earnings under the Canada Pension Plan for 2025 will be $71,300, up from $68,500 in 2024, the Canada Revenue Agency (CRA) announced Friday.
The second earnings ceiling, known as the year’s additional maximum pensionable earnings, will be $81,200 in 2025, up from $73,200 in 2024.
Earnings between the first and second earnings ceilings are subject to a second tranche of CPP contributions, also known as CPP2 contributions, as part of the plan’s expansion that began in 2019.
In 2024, the CRA introduced the second earnings ceiling, set 7% higher than the first earnings ceiling. Next year and for every subsequent year, the second earnings ceiling will be set 14% higher than the first. The 2025 increase represents the last step in the second stage of CPP expansion.
Between 2019 and 2023, both the employer and employee contribution rates up to the first earnings ceiling increased from 4.95% to 5.95% as part of the first stage in the expansion of the CPP.
Employee and employer CPP contribution rates for 2025 remain at 5.95% and the maximum contribution will be $4,034.10 each, up from $3,867.50 in 2024. Self-employed individuals pay both the employee and employer contributions, or 11.9%, and a maximum of $8,068.20, up from $7,735.00 in 2024.
The basic exemption amount for 2025 remains $3,500.
Employee and employer CPP2 contribution rates for 2025 will remain 4% and the maximum contribution will be $396.00, up from $188.00 in 2024. The self-employed rate will remain at 8% and the maximum contribution will be $792.00, up from $376.00 in 2024.
The RRSP dollar limit, which is indexed, will be $33,810 for 2026 and $32,490 for 2025, up from $31,560 for 2024.
The TFSA limit for 2025, expected to be announced later this year, is expected to remain $7,000.