On October 28, 2025, the Canada Revenue Agency announced that the 2026 CPP maximum pensionable earnings will be $74,600, up from $71,300. The basic exemption amount for 2026 remains at $3,500.
The employee and employer contribution rates for 2026 will remain at 5.95 per cent, and the self-employed contribution rate will remain at 11.90 per cent.
The maximum employer and employee contribution to the plan for 2026 will be $4,230.45 each, and the maximum self-employed contribution will be $8,460.90.
The 2025-2026 yearly maximum pensionable earnings, exemption, contribution rate, and maximum CPP contribution are summarized as follows:
| CPP Rates | ||
| 2025 CPP | 2026 CPP | |
| Maximum pensionable earnings | $71,300.00 | $74,600.00 |
| Annual basic exemption | $3,500.00 | $3,500.00 |
| Contributory earnings | $67,800.00 | $71,100.00 |
| Contribution rate | 5.95% | 5.95% |
| Employee-employer maximum contribution | $4,034.10 | $4,230.45 |
2026 CPP2 limit
On October 28, 2025, the Canada Revenue Agency announced that the 2026 CPP2 maximum additional pensionable earnings will be $85,000 up from $81,200.
Pensionable earnings between $74,600 and $85,000 are subject to CPP2 contributions.
The employee and employer contribution rates for 2026 will remain at four per cent, and the self-employed contribution rate will be eight per cent on the new earnings range.
The maximum employer and employee contribution to the CPP2 for 2026 will be $416 each, and the maximum self-employed contribution will be $832.
The 2025-2026 CPP2 maximums and rates are summarized as follows:
| CPP2 Rates | ||
| 2025 | 2026 | |
| Year’s Additional Maximum Pensionable Earnings | $81,200.00 | $85,000.00 |
| Year’s Maximum Pensionable Earnings | $71,300.00 | $74,600.00 |
| Basic Exemption | N/A | N/A |
| Contributory Earnings | $9,900.00 | $10,400.00 |
| Contribution Rate | 4.00% | 4.00% |
| Maximum Contribution | $396.00 | $416.00 |
Employers should:
- Inform their employees about the 2026 maximum pensionable earnings increase, including how the increased contributions will affect their take-home pay.
- Advise Finance, HR and senior management team to ensure 2026 budgets reflect the increases of both the basic and enhanced employer CPP contributions.
- Ensure accurate payroll deductions reflecting the new maximum contributions starting in 2026.
- Stay updated on any legislative changes and ensure their practices align with the latest regulations concerning CPP and CPP2.
Annual Limits for Registered Plans and RRSPs in 2026
The Federal Government has announced the updated annual limits for registered plans and Registered Retirement Savings Plans (RRSPs) for 2026. Below are the details:
| Plan Type | Annual Limit 2025 | Annual Limits 2026 |
| Defined Contribution (DC) or Money Purchase RPP | $33,810.00 | $35,390.00 |
Defined Benefit (DB) RPP
| $3,756.67 $33,210.00 | $3,932.22 $34,790.00 |
| Deferred Profit Sharing Plan (DPSP) | $16,905.00 | $17,695.00 |
| Registered Retirement Savings Plan (RRSP) | $32,490.00 | $33,810.00 |
Employers should do the following.
- Inform employees about the updated contribution limits for their registered plans, ensuring they understand how these changes may impact their retirement savings strategies.
- Ensure that the company's retirement plans are administered according to the new limits, making necessary adjustments to contributions as required.
- Stay informed about legislative changes and ensure that all retirement plans comply with federal regulations to avoid potential penalties.
- Provide resources and guidance to help employees make informed decisions about their contributions and retirement planning.
- Regularly monitor employee contributions to ensure they do not exceed the annual limits set by the government. Exceeding these limits could have tax implications for both the employer and employee.
- Advise senior management and Finance since these new limits could impact an organization’s budget forecasts.
By fulfilling these responsibilities, employers can support their employees' retirement planning efforts while remaining compliant with federal regulations.