Maximum pensionable earnings under the Canada Pension Plan are rising from $57,400 to $58,700 for 2020.
The increase takes into account the growth in average weekly wages and salaries in Canada, according to a press release.
The basic exemption amount, at $3,500, will remain unchanged for 2020.
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Meanwhile, contributors earning more than $58,700 in 2020 won’t be required or permitted to make further CPP contributions.
Employee and employer contribution rates for 2020 are also rising to 5.25 per cent, up from 5.1 per cent. The self-employed rate will rise to 10.5 per cent, up from 10.2 per cent this year.
The rates are rising off the back of the CPP enhancement, which started on Jan. 1, 2019. In dollar terms, the maximum employer and employee contributions will be $2,898 each for 2020, up from $2,748.90, with the maximum for those who are self-employed rising to $5,796, up from $5,497.80.