Canada Revenue Agency
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CPP contribution rates and maximums
Each year, we provide the maximum pensionable earnings, the annual basic exemption, and the rate for you to calculate the amount of CPP to deduct from your employees.
You must contribute the same amount that you deduct from your employees' remuneration.
Example
| CPP contributions you deducted from your employee's salary in the month |
$240.40 |
| Your share of CPP contributions | $240.40 |
| Total amount you remit for CPP contributions | $480.80 |
CPP rates, maximums and exemptions chart.
You stop deducting CPP contributions when the employee's annual earnings reach the maximum pensionable earnings or the maximum employee contribution for the year ($2,306.70 for 2012).
Note
The annual maximum pensionable earnings applies to each job the employee holds with different employers (different business numbers). If an employee leaves one employer during the year to start work with another employer, the new employer also has to deduct CPP contributions without taking into account what was paid by the previous employer. This is the case even if the employee has paid the maximum contribution amount during the previous employment.
If your business went through a restructure or reorganization, see What should you do if your business goes through a restructure or reorganization?
Any overpayments will be refunded to employees when they file their income tax and benefit returns. Employers are not entitled to a refund.
Employers who have a place of business in Quebec and in another province or territory and transfer employees from one to another
In such a case, when calculating the amount of CPP contributions, you can take into account the QPP contributions you deducted from that employee throughout the year. The total contributions to both plans cannot be more than the maximum contribution for the year.
For Reporting instructions, see Box 16 and 17 - Employee's CPP or QPP contributions.
