Changes made to the Canada Pension Plan (CPP) beginning in the 2024 calendar year will create a two-tier contribution structure.
First-tier contributions for 2024 are set at 5.95% of pensionable earnings between $3,500 and $68,500.
Second-tier contributions for 2024 are set at 4.0% of pensionable earnings between $68,500 and $73,200.
The maximum CPP contribution in 2024 for individuals making only first-tier contributions (those with pensionable earnings of $68,500 or less) will be $3,867.50. Individuals making second tier contributions will be required to contribute up to an additional $188.00 in contributions for the year.