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Canada Revenue Agency announces maximum pensionable earnings for 2018

The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2018 will be $55,900—up from $55,300 in 2017. The new ceiling was calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada.

Contributors who earn more than $55,900 in 2018 are not required or permitted to make additional contributions to the CPP.

The basic exemption amount for 2018 remains $3,500.

The employee and employer contribution rates for 2018 will remain unchanged at 4.95%, and the self-employed contribution rate will remain unchanged at 9.9%.

The maximum employer and employee contribution to the plan for 2018 will be $2,593.80 each and the maximum self-employed contribution will be $5,187.60. The maximums in 2017 were $2,564.10 and $5,128.20