The purpose of the additional cpp component is to provide enhanced cpp benefits for former employees with higher incomes. The maximum contribution to the base cpp for employers and employees in 2022 is $3,499.80.
Starting in 2024, a higher, second earnings ceiling of $73,200 will be implemented and used to determine second additional cpp contributions (cpp2). The cpp enhancement will increase the maximum cpp retirement pension by more than 50% for those who make enhanced contributions for 40 years.
Justin Trudeau, Plans For Cpp And Oas Pension Increase In June.
The increment will be made in the monthly payment of oas of $1400.
The Upgraded Cpp Policies, Which Continue Phasing In Through.
Earnings between $68,500 and $73,200 will be subject to additional cpp contributions, known as cpp2.
Images References :
Overall, People Earning Over $73,200 Will Be Contributing An Extra $300 In 2024, Compared To Their Previous Contribution Last Year.
Starting this year, the enhanced pension plan now has two earnings ceilings.
If You Are An Employee, You And Your Employer Will Each Have To Contribute 5.95% Of Your Pensionable Earnings (Up To $68,500) To Cpp, Plus 4.00% Of Your Additional Pensionable Earnings (Between $68,500 And $73,200) To Cpp2.
Starting in 2024, a higher, second earnings ceiling of $73,200 will be implemented and used to determine second additional cpp contributions (cpp2).