The Canada Pension Plan (CPP) earnings ceiling is increasing at the highest rate in 30 years, a change that will provide a boost to benefits for new retirees and a hit for workers and businesses contributing to the plan.
The earnings cap, called yearly maximum pensionable earnings or YMPE, is set to rise to $64,900 for 2022 from $61,600 for 2021, the Canada Revenue Agency (CRA) announced on Nov.
1. That’s a 5.3 per cent increase, the largest percentage change since 1992. Read more: How to protect your savings from inflation The change will boost benefits for retirees who start claiming CPP benefits in 2022 or later but also result in significantly larger contributions for workers and employers paying into the pension plan.