CPP & EI Maximum 2024 Contributions,Rates & Limits

Learn about the CPP and EI maximum 2024 contributions, including the latest rates and limits. Discover how these changes impact your payroll deductions and overall benefits. Stay updated to ensure accurate financial planning and compliance with Canadian regulations.

Canada Pension Plan (CPP) Maximum Contributions

• Maximum Pensionable Earnings (YMPE): $68,500
• Employee and Employer Contribution Rate: 5.95% each
• Maximum Employee and Employer Contribution: $3,867.50 each

Important: Starting in 2024, there’s a second tier of CPP contributions called CPP2. This applies to earnings above the YMPE but below $73,200. The CPP2 rate is 4%.

Employment Insurance (EI) Maximum Contributions

• Maximum Insurable Earnings (MIE): $63,200
• EI Premium Rate: 1.66%

Important: The maximum EI contribution is calculated by multiplying the MIE by the EI premium rate.

CPP and EI Contributions for Less Than Maximum Earnings

Calculating CPP Contributions

If you earn less than the Maximum Pensionable Earnings (YMPE) for the year, your CPP contributions will be calculated as follows:

• Determine your pensionable earnings: This is your gross income minus any exempt earnings.
• Calculate the CPP contribution: Multiply your pensionable earnings by the contribution rate (5.95% for both employee and employer).

Example: If you earn $40,000 in a year and the YMPE is $68,500, your CPP contribution would be $40,000 * 5.95% = $2,380.

CPP & OAS Payment Increase 2024: How Much Is Increase?

CPP & OAS Increase 2024: Future Benefits & What to Expect

CPP Payment Dates 2024, Increase, Disability Benefit, CPP Amount & Limit

Calculating EI Contributions

The calculation for EI contributions is simpler:

• Determine your insurable earnings: This is your gross income up to the Maximum Insurable Earnings (MIE).
• Calculate the EI contribution: Multiply your insurable earnings by the EI premium rate (1.66%).

Example: If you earn $40,000 in a year and the MIE is $63,200, your EI contribution would be $40,000 * 1.66% = $664.

Important: These are basic calculations. There might be other factors affecting your CPP and EI contributions, such as parental leave or sickness benefits.