Effective January 1, 2025, a higher second earnings ceiling of $81,200, known as the Year’s Additional Maximum Pensionable Earnings (YAMPE), will be used to determine second additional QPP contributions (QPP2). This QPP2 is part of the QPP enhancement.
As a result, pensionable earnings between $71,300 and $81,200 are subject to QPP2 contributions.
The 2024-2025 QPP2 maximums and rates are summarized as follows:
|
QPP2 Rates |
||
|
QPP rates |
2024 QPP2 |
2025 QPP2 |
|
Year’s additional maximum pensionable earnings (YAMPE) |
$73,200.00 |
$81,200.00 |
|
Year’s maximum pensionable earnings (YMPE) |
$68,500.00 |
$71,300.00 |
|
Annual basic exemption |
N/A |
N/A |
|
Contributory earnings |
$4,700.00 |
$9,900.00 |
|
Contribution rate |
4.00% |
4.00% |
|
Employee-employer maximum annual contribution |
$ 188.00 |
$ 396.00 |
Employers should:
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Update their payroll systems to reflect rising contribution rates for employees and employers.
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Inform employees of changes affecting take-home pay.
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Ensure Finance, HR, and management teams adjust 2025 budgets for increased QPP contributions, QPIP premiums and QHSF.
-
Implement accurate payroll deductions with new rates in 2025.
-
Monitor legislative updates to maintain compliance with QPP, QPP2, and QPIP.
These steps help employers meet compliance requirements and support employees in understanding increases in QPP contributions and QPIP premiums.