Talent Konnections
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Phone: +1 416-716-9425
Website: www.talentkonnections.com
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CPP is going up in 2021. The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2021 will be $61,600. 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. The basic exemption amount for 2021 remains at $3,500. The employee and employer contribution rates will be 5.45% and the self-employed contribution rate will be 10.9%. The increase in contribution rate is due to the continued implementation of the CPP enhancement. The maximum employer and employee contribution to the plan for 2021 will be $3,166.45 each and the maximum self-employed contribution will be $6,332.90.
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