On November 2, 2015, Canada Revenue Agency (CRA) announced that the maximum pensionable earnings under the Canada Pension Plan (CPP) will increase on January 1, 2016 from $53,600 to $54,900.

What does that mean to you?

First, this means that if you are earning $54,900 or more in 2016, CPP contributions for employees and employers will increase to $2,544.30.  If you are self-employed – which means you’re paying both sides – this means that your annual CPP contribution will now be $5,088.60.

Second, if you are self-employed or a business owner, and plan your annual wages around the CPP, plan to increase your salary to $54,900 annually ($4,575 monthly) starting January 1st.

Have questions about CPP, income planning and more? Contact us

Julia Chung

Julia Chung

Co-Founder, Sr. Financial Planner at Spring Financial Planning
With twenty years' experience in the financial services industry, education in both personal and corporate finance, business and family law, cross border planning, family dynamics, insurance, risk management, operations management, and strategy, Julia is a powerhouse financial planner and the co-founder of Spring Financial Planning.
Julia Chung

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