The Canada Revenue Agency has announced that the maximum pensionable earnings under the Canada Pension Plan for 2019 will be $57,400, up from $55,900 in 2018.

Contributors who earn more than $57,400 won’t be permitted to make additional contributions to the CPP. The basic exemption amount for 2019 remains $3,500.

The registered retirement savings plan dollar limit, another indexed figure, has also been updated for 2019, and will be $26,500, up from $26,230 this year. The tax-free savings account limit for 2019 will be officially announced later this year.

Read: Majority of Ontario small employers want CPP hike scrapped, delayed: survey

As well, employee and employer CPP contribution rates for 2019 will be 5.1 per cent, up from 4.95 per cent in 2018. Meanwhile, the self-employed contribution rate will be 10.2 per cent, up from 9.9 per cent in 2018. This increase is due to the CPP enhancement that will be implemented on Jan. 1.

The maximum employer and employee contribution to the CPP for next year will be $2,748.90 each, and the maximum self-employed contribution will be $5,497.80. The maximums in 2018 were $2,593.80 and $5,187.60, respectively.

This article originally appeared on Benefits Canada’s companion site, Advisor.ca

Copyright © 2018 Transcontinental Media G.P. Originally published on benefitscanada.com

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