2013 CPP contribution rates

For 2013, the maximum pensionable earnings under the Canada Pension Plan (CPP) will be $51,100, up $1,000 from $50,100 in 2012.

Contributors who earn more than $51,100 in 2013 are not required or permitted to make additional contributions to the CPP.

The Canada Revenue Agency calculated the new ceiling according to formula legislated by the Canada Pension Plan Act. The limit is indexed to the ratio of the average industrial wage for the 12 months ended June 30, 2012, to the average industrial wage for the previous 12-month period, rounded down to the nearest $100. 

The basic exemption amount for 2013 is unchanged at $3,500. Likewise contribution rates for employers and employees and the self-employed are unchanged, at 4.95% and 9.9%, respectively. The maximum employer and employee contribution to the plan will be $2,356.20 in 2013, vs 2,306.70 in 2012 — a $49.50 increase. For the self-employed,  the maximum contribution will be $4,712.40 in 2013, vs $4,613.40 in 2012 — a $99 increase. For those earning less than $50,000, this means no change in the CPP contributions they will make in 2013.