Canada Pension Plan Contributions (CPP)
The maximum pensionable earnings under the Canada Pension Plan for 2020 are $58,700, up from $57,400 in 2019. Contributors who earn more than $58,700 in 2020 aren’t required to make additional contributions to the CPP. The basic exemption amount for 2019 remains at $3,500.
Employee and employer CPP contribution rates for 2020 is 5.25%, up from 5.1% in 2019.
The self-employed contribution rate is 10.5%, up from 10.2% in 2019.
The maximum employer and employee contributions to the CPP for 2020 are $2,898 each.
The maximum self-employed contribution is $5,796.
Employment Insurance (EI)
The Maximum Insurable Earnings for 2020 increased to $54,200 from $53,100 in 2019.
The maximum annual EI contribution for a worker decreased by $3.86 to $856.36 (down $5.41 for employers to $1,198.90 per employee).
The 2020 EI premium rate is $1.58 per $100 of insurable earnings – a decrease of 4 cents for employees compared to the 2019 rate ($1.62), and a decrease of 6 cents to $2.21 for employers who pay 1.4 times the employee rate.
