Did your last paycheque look a little low? That’s because starting in 2019, the amount you contribute to Canada Pension Plan (CPP) will increase from 4.95% to 5.10% for earnings between $3,500 and $57,400. These contributions are matched by your employer.
Therefore, if your salary is $57,400 or higher, you will pay approximately $81 more in premiums this year.
The CPP is being enhanced over the next seven years. You will gradually pay higher premiums now in order to receive a larger benefit at retirement. The overall aim is to grow the amount you will receive to one-third of average work earnings, up from a quarter.
This information is provided for general information purposes only. It does not constitute professional advice. Please contact a professional about your specific needs before taking any action.