The Canada Revenue Agency (CRA) has released the updated Year’s Maximum Pensionable Earnings (YMPE) for 2026. The YMPE will increase to $74,600, a 4.6% rise from the 2025 level of $71,300.
The CRA has also adjusted the second earnings ceiling, known as the Year’s Additional Maximum Pensionable Earnings (YAMPE), which will be $85,000 for 2026. As a result, pensionable earnings between $74,600 and $85,000 will continue to be subject to additional CPP contributions (CPP2).
These updates follow the CPP-legislated formula aligned with growth in average weekly wages and salaries across Canada.
CPP Contribution Rates for 2026
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Employee and employer contribution rate: 5.95% (unchanged from 2025)
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Maximum employee and employer contribution: $4,230.45 each (up from $4,034.45 in 2025)
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Basic exemption amount: $3,500
Additional CPP2 Contributions for 2026
The additional CPP2 contribution rate remains 4.00% on earnings above the YMPE and up to the YAMPE.
- Maximum additional CPP2 contribution: $416.00 each, up from $396.00 in 2025.
For a full list of updated statutory limits, contribution rates, and other reference materials, visit the Penad Rates Page: Penad Rates
| 2025 | 2026 | |
|---|---|---|
| YMPE (Year’s Maximum Pensionable Earnings) | $71,300 | $74,600 |
| YAMPE (Second Earnings Ceiling) | $81,100 | $85,000 |
| Base CPP Contribution Rate (Employee/Employer) | 5.95% | 5.95% |
| Max Base Contribution (Employee/Employer) | $4,034.45 | $4,230.45 |
| CPP Basic Exemption | $3,500 | $3,500 |
| CPP2 Additional Rate (Employee/Employer) | 4.00% | 4.00% |
| Max CPP2 Contribution (Employee/Employer) | $396.00 | $416.00 |