how much cpp do i pay in 2025

how much cpp do i pay in 2025

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In 2020, the standard Canada Pension Plan (CPP) contribution rate for employees was 5.25% on pensionable earnings between the basic exemption amount of $3,500 and the year's maximum pensionable earnings (YMPE) of $58,700. Employers matched this rate, also paying 5.25%. Self-employed individuals had to pay both the employee and employer amounts, totaling 10.5%. The CPP contribution for an employee or employer was calculated as follows:

(min⁡(Gross Income,58,700)−3,500)×5.25%(\min(\text{Gross Income},58,700)-3,500)\times 5.25%(min(Gross Income,58,700)−3,500)×5.25%

The maximum annual CPP contribution in 2020 for an employee or employer was $2,898, and for a self-employed person, it was $5,796. For example, if someone earned $45,000 in 2020:

(45,000−3,500)×0.0525=2,178.75 CAD(45,000-3,500)\times 0.0525=2,178.75\text{ CAD}(45,000−3,500)×0.0525=2,178.75 CAD

So, the exact amount paid depends on the income, but no more than these maximum contributions could be required for the year 2020.

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