The maximum pensionable earnings under the Canada Pension Plan (CPP) will increase $1,300 to $54,900 in 2016 from $53,600 in 2015.
The Canada Pension Plan (CPP) rate (4.95%) and exemption ($3,500) remains the same in 2015.
The maximum employee and employer contribution to the pan for 2016 will be $2,544.30 – up from $2,479.95 in 2015. As a result, the employees who earn $54,900 or more will have to make $64.35 more in CPP contribution compared to 2015. Employers will also see their CPP expenses to increase $64.35 for each employee whose salary is $54,900 or higher.
The maximum self-employed contribution for 2016 will be $5,088.60 – up from $4,959.90 in 2015.