CRA Increases CPP Maximum Pensionable Earnings and Contributions for 2025

Published November 04, 2024

​​The Canada Revenue Agency (CRA) announced that as of January 1, 2025, maximum pensionable earnings under the Canada Pension Plan (CPP) will increase to $71,300 — up from $68,500 in 2024. In addition, in 2025, a higher, second earnings ceiling of $81,200 will be used to determine additional CPP contributions (CPP2). As a result, pensionable earnings between $71,300 and $81,200 are subject to CPP2 contributions.

The updated amount were calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada.

Additional 2025 CPP details:

  • For the CPP contribution rates for 2025, the employee and employer contribution rates are unchanged from 2024 at 5.95%. The self-employed contribution rate also remains unchanged at 11.90%.
  • The maximum employer and employee contribution to the plan for 2025 will be $4,034.10 each, up from $3,867.50 in 2024 and the maximum self-employed contribution will be $8,068.20, up from $7,735.00 in 2024.
  • For the CPP2 contribution rates for 2025, employee and employer rates remain unchanged at 4.00%, and the maximum contribution will be $396.00 each, up from $188.00 in 2024. 
  • The self-employed CPP2 contribution rate remains unchanged at 8.00%, and the maximum self-employed contribution will be $792.00, up from $376.00 in 2024.
Contributors who earn more than $81,200 in 2025 are not required or permitted to make additional contributions to the CPP.