Real-time Estimation for the
Year’s Maximum Pensionable Earnings (YMPE)

Canada Revenue Agency announces maximum pensionable earnings for 2024 will be $68,500.

We will begin providing estimates for 2025 YMPE in May 2024.

$68,500

A YMPE for 2024 of $68,500 represents an increase of 2.9% compared to the YMPE that is in effect for 2023 ($66,600). 

A YMPE for 2024 of $68,500 means that the Year’s Additional Maximum Pensionable Earnings (YAMPE) will be $73,200. YAMPE = 1.07 x YMPE for 2024 (and YAMPE increases to 1.14 x YMPE for 2025 and beyond).

Estimate of the maximum employee and employer portion of CPP contributions for 2024 are as follows (self-employed individuals contribute twice these amounts):

Basic + 1st Additional portions = $3,867.50

2nd Additional portion = $188.00

Therefore, the total maximum CPP contribution for 2024 is $4,055.50. If your 2024 income equals or exceeds $73,200, your contribution into the CPP will be $4,055.50.

The calculation methodology is described in our paper, “Real-time Estimation Method for the Year’s Maximum Pensionable Earnings (YMPE):  This Leading Indicator can Improve Payroll Budgeting and Canada Pension Plan (CPP) Calculations.

In the paper, we present the results from a study that examines how well (accurate) Real-time YMPE estimation has performed historically.

Other Papers: