Canada Raises Pensionable Earnings Limits for 2017

The global solution for payroll professionals, combines custom research, strategic white papers, country primers, webinars, and the expert guidance you’ve come...

By Molly Ward

Nov. 1—The maximum pensionable earnings under the Canada Pension Plan (CPP) is to increase to C$55,300 ($41,298) from C$54,900 ($40,999), while contributions rates are to remain unchanged for 2017, the Canada Revenue Agency said Nov. 1 in an announcement.

The increased ceiling amount was calculated using a formula that takes into account the growth in average weekly wages and salaries in Canada, the agency said.

Individuals who earn more than C$55,300 in 2017 cannot make additional contributions to the CPP. The basic exemption amount for 2017 remains C$3,500 ($2,614).

Contribution rates will remain unchained at 4.95 percent. The maximum amount that employers or employees can contribute to the CPP for 2017 will be C$2,564.10 ($1,915) each, an increase from C$2,544.30 ($1,900) in 2016.

The CPP applies to all provinces and territories in Canada except Quebec, where the Quebec Pension Plan (QPP) provides similar benefits.

To contact the reporter on this story: Molly Ward at mWard@bna.com

To contact the editor on this story: Michael Baer at mbaer@bna.com

For More Information

The announcement can be found at http://news.gc.ca/web/article-en.do?mthd=index&crtr.page=1&nid=1145789.

More information on payroll issues in Canada can be found in the Canada country primer.

Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.