The Canada Revenue Agency (CRA) says the yearly maximum pensionable earnings (YMPE) under the Canada Pension Plan (CPP) will be $55,300 next year, up from $54,900 in 2016.
"The new ceiling was calculated using a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada," reads the message which was posted to the CRA web site yesterday. "Contributors who earn more than $55,300 in 2017 are not required or permitted to make additional contributions to the CPP."
The basic exemption amount for 2017 will remain $3,500
The CRA indicated that the basic exemption amount for 2017 will remain $3,500. The employee and employer contribution rates for 2017 will also remain unchanged at 4.95%, and the self-employed contribution rate will hold steady at 9.9%.
“The maximum employer and employee contribution to the CPP for 2017 will be $2,564.10” each, says the CRA. “The maximum self-employed contribution will be $5,128.20. The maximums in 2016 were $2,544.30 and $5,088.60, respectively.”