Bulletin
CPP Changes for 2024
January 3, 2024
To: MoveUP Members
The Canada Pension Plan (CPP) enhancement was introduced on January 1, 2019 and is designed to help increase retirement income for working Canadians.
Since the introduction of the CPP enhancement, the CPP contribution rate has increased gradually every year from 4.95% before its inception to 5.95% by January 1, 2023, a total increase of 1% over that span.
CPP contributions are made until you reach the Year’s Maximum Pensionable Earnings (YMPE). As an employee, your employer matches your contribution towards your retirement income. For 2024, the YMPE amount is $68,500.
As of January 1, 2024, a second, higher limit has been introduced, allowing an additional portion of earnings to be invested towards a higher retirement income. The new limit is known as the Year’s Additional Maximum Pensionable Earnings (YAMPE). For 2024, the YAMPE limit is $73,200.
Starting this year, your CPP contribution will be 5.95% of earnings up to $68,500 (YMPE). Once you reach that income level, CPP contributions will drop to 4% of earnings up to $73,200 (YAMPE). If you earn $73,200 or more, the increase in your annual CPP contributions will be $188.
If you earn between $68,500 and $73,200, the increase in your annual CPP contributions is 4% of the amount above $68,500. For example, if you earn $69,500, your increase will be $40 (4% of $1,000).
Your employer will continue to match your contribution towards your retirement income.
For more information about these changes, please click here.
If you have a workplace pension, please reach out to your pension plan administrator to see if these changes will impact your pension contributions.
In solidarity,
Lori Mayhew
Secretary-Treasurer
