Canada Pension Plan Contribution Rates
The amount you pay is based on your salary. If you are self-employed, it is based on your net business income (after expenses). You do not contribute on any other source of income, such as investment earnings. If, during a year, you contributed too much or earned less than a set minimum amount, you will receive a refund of contributions when you complete your income tax return.
You only pay contributions on your annual earnings between a minimum and a set maximum level (these are called your "pensionable" earnings). The minimum level is frozen at $3,500. The maximum level is adjusted each January, based on increases in the average wage.
The table below can help you determine how much you contributed to the CPP in a given year.
Years 1985 - 2006
Years 1966 - 1984
- If you earn less than the minimum level of pensionable earnings in a given year, you do not have to contribute to the CPP that year. If you make any contributions to the CPP that year, you will receive a refund of contributions when you file your tax return. Example A
- If your earnings in a given year are between the minimum and maximum pensionable earnings levels, you subtract the minimum pensionable earnings amount from your income, and multiply by your contribution rate (the rate you use depends on whether you are an employee or self-employed). The result of this calculation is your maximum contribution for that year. Example B
- If you earn more than the maximum level of pensionable earnings in a given year, you will only contribute up to the maximum level. You will receive a refund of over-contributions when you file your tax return. Example C
| Year | Pensionable Earnings | Contribution Rate | ||
|---|---|---|---|---|
| Minimum | Maximum | Employed | Self-employed | |
| 2006 | $3,500 | $42,100 | 4.95% | 9.9% |
| 2005 | $3,500 | $41,100 | 4.95% | 9.9% |
| 2004 | $3,500 | $40,500 | 4.95% | 9.9% |
| 2003 | $3,500 | $39,900 | 4.95% | 9.9% |
| 2002 | $3,500 | $39,100 | 4.7% | 9.4% |
| 2001 | $3,500 | $38,300 | 4.3% | 8.6% |
| 2000 | $3,500 | $37,600 | 3.9% | 7.8% |
| 1999 | $3,500 | $37,400 | 3.5% | 7.0% |
| 1998 | $3,500 | $36,900 | 3.2% | 6.4% |
| 1997 | $3,500 | $35,800 | 3.0% | 6.0% |
| 1996 | $3,500 | $35,400 | 2.8% | 5.6% |
| 1995 | $3,400 | $34,900 | 2.7% | 5.4% |
| 1994 | $3,400 | $34,400 | 2.6% | 5.2% |
| 1993 | $3,300 | $33,400 | 2.5% | 5.0% |
| 1992 | $3,200 | $32,200 | 2.4% | 4.8% |
| 1991 | $3,000 | $30,500 | 2.3% | 4.6% |
| 1990 | $2,800 | $28,900 | 2.2% | 4.4% |
| 1989 | $2,700 | $27,700 | 2.1% | 4.2% |
| 1988 | $2,600 | $26,500 | 2.0% | 4.0% |
| 1987 | $2,500 | $25,900 | 1.9% | 3.8% |
| 1986 | $2,500 | $25,800 | 1.8% | 3.6% |
| 1985 | $2,300 | $23,400 | 1.8% | 3.6% |
| Year | Pensionable Earnings | Contribution Rate | ||
|---|---|---|---|---|
| Minimum | Maximum | Employed | Self-employed | |
| 1984 | $2,000 | $20,800 | 1.8% | 3.6% |
| 1983 | $1,800 | $18,500 | 1.8% | 3.6% |
| 1982 | $1,600 | $16,500 | 1.8% | 3.6% |
| 1981 | $1,400 | $14,700 | 1.8% | 3.6% |
| 1980 | $1,300 | $13,100 | 1.8% | 3.6% |
| 1979 | $1,100 | $11,700 | 1.8% | 3.6% |
| 1978 | $1,000 | $10,400 | 1.8% | 3.6% |
| 1977 | $900 | $9,300 | 1.8% | 3.6% |
| 1976 | $800 | $8,300 | 1.8% | 3.6% |
| 1975 | $700 | $7,400 | 1.8% | 3.6% |
| 1974 | $700 | $6,600 | 1.8% | 3.6% |
| 1973 | $600 | $5,600 | 1.8% | 3.6% |
| 1972 | $600 | $5,500 | 1.8% | 3.6% |
| 1971 | $600 | $5,400 | 1.8% | 3.6% |
| 1970 | $600 | $5,300 | 1.8% | 3.6% |
| 1969 | $600 | $5,200 | 1.8% | 3.6% |
| 1968 | $600 | $5,100 | 1.8% | 3.6% |
| 1967 | $600 | $5,000 | 1.8% | 3.6% |
| 1966 | $600 | $5,000 | 1.8% | 3.6% |
Example A:
David finished high school and started working at a grocery store in 2002. His earnings for that year were $2,700, which is $800 less than the minimum contribution level. This means that he did not have to contribute to the CPP in 2002. If David's employer deducted any CPP contributions, they would have been refunded to him when he filed his tax return.
Example B:
Jane is employed by a real estate company. In 1999, she earned $25,000. This figure is between the minimum contribution level of $3,500 and the 1999 maximum rate for pensionable earnings ($37,400), so her maximum contribution for 1999 was $752.50. (25,000 - 3,500 x .035 = 752.50)
Example C:
John owns his own kitchen supplies business. In 2003, he earned $54,000. This figure is higher than the maximum pensionable earnings for 2003 ($39,900), which means that his maximum contribution for that year was $3,603.60. (39,900 - 3,500 x .099 = 3,603.60)