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.<\/p>\n
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.<\/p>\n
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\u2019s expansion that began in 2019.<\/a><\/p>\n 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.<\/p>\n 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.<\/p>\n 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.<\/p>\n The basic exemption amount for 2025 remains $3,500.<\/p>\n 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.<\/p>\n The RRSP dollar limit, which is indexed, will be $33,810 for 2026 and $32,490 for 2025, up from $31,560 for 2024.<\/p>\n