The Canada Revenue Agency (CRA) has announced the maximum pensionable earnings for 2020. In accordance with the Canada Pension Plan (CPP) enhancement announced in 2016 and further explained here maximum pensionable earnings, contribution rates and maximum contribution will all be increased in 2020.
The maximum pensionable earnings have increased from $57,400 to $58,700 while the basic exemption amount for 2020 remains at $3,500.
Employers and Employees
- Contribution rates for 2020 will be 5.25% (up from 5.1%)
- Maximum contributions will be $2,989 (up from $2,748)
- The contribution rate will be 10.5% (up from 10.2%)
- The maximum contribution will be $5,796 (up from $5,497.80)
If you have any questions regarding the increases to the maximum pensionable earnings for 2020 or the CPP enhancement please reach out to your Bateman MacKay LLP client manager.