The Canada Revenue Agency has announced an increase of $600 to the year’s maximum pensionable earnings under the Canada Pension Plan for 2018.

Contributors who earn more than $55,900 in 2018 won’t be able to make additional contributions to the CPP. The threshold is up from $55,300 this year. The basic exemption amount remains at $3,500.

The employee and employer contribution rates for 2018 will remain at the current 4.95 per cent each. The maximum employer and employee contribution to the CPP will increase slightly to $2,593.80 each for 2018. Under reforms to the CPP, contributions will begin rising gradually in 2019 to 5.95 per cent from employers and employees by 2025.

Read: Quebec move to follow CPP changes ‘good news’: ACPM

Copyright © 2017 Transcontinental Media G.P. Originally published on benefitscanada.com

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