Canada Raises Pensionable Earnings Limits for 2017

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.

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