CPP (Canada Pension Plan) contributions are mandatory for all working Canadians aged 18-70. Employees and employers contribute equally on earnings that are between the Basic Exemption amount and the Years Maximum Pensionable Earnings (YMPE) . The employer must deduct CPP contributions from the employees pensionable earnings and contribute an amount equal to the CPP contributions deducted from the employees remuneration. The maximum pensionable earnings for 2023 is $66,600, and the contribution rate for 2023 is 5.95% for both employees and employers. The maximum CPP contribution for 2022 is $3,500 (($64,900 gross wages – $3,500 exemption) x 5.7%) each for the employer and the employee with a total CPP contribution of $7,000. Once an employees annual earnings reach the maximum pensionable earnings or the maximum employee contribution for the year, CPP contributions stop being deducted. Self-employed individuals are required to pay both the employee and employers portion of the CPP contribution. CPP contributions are invested in a trust fund managed by the CPP Investment Board. The CPP retirement pension is a monthly benefit that replaces part of your income when you retire, and to qualify for this benefit, you must be at least 60 years of age and have made at least one eligible contribution to the CPP during your working years.