CPP Limits

Question 1

What is YMPE?

Answer 1

YMPE = Year’s Maximum Pensionable Earnings, the maximum income on which CPP base contributions are made. For 2025, YMPE = $72,500.

Question 2

What is YAMPE?

Answer 2

YAMPE = Year’s Additional Maximum Pensionable Earnings, a second-tier limit above YMPE. For 2025, YAMPE = $84,900.

Question 3

What is the employee contribution % on earnings up to YMPE in 2025?

Answer 3

5.95% of earnings up to YMPE ($72,500).

Question 4

What is the employer contribution % on earnings up to YMPE in 2025?

Answer 4

5.95% of earnings up to YMPE ($72,500).

Question 5

What is the combined employee + employer contribution % on YMPE in 2025?

Answer 5

11.90%.

Question 6

What is the employee contribution % on earnings between YMPE and YAMPE in 2025?

Answer 6

4.00% of earnings between $72,500 and $84,900.

Question 7

What is the employer contribution % on earnings between YMPE and YAMPE in 2025?

Answer 7

4.00% of earnings between $72,500 and $84,900.

Question 8

What is the combined employee + employer contribution % on YAMPE in 2025?

Answer 8

8.00%.

Question 9

How much CPP does an employee earning $60,000 contribute in 2025?

Answer 9

$60,000 × 5.95% = $3,570 (employer also contributes $3,570).

Question 10

How much CPP does an employee earning $80,000 contribute in 2025?

Answer 10

On first $72,500: $72,500 × 5.95% = $4,311.

On next $7,500 (YAMPE tier): $7,500 × 4.00% = $300.

Total employee = $4,611 (employer matches = $4,611).

Question 11

How much CPP does an employee earning $100,000 contribute in 2025?

Answer 11

On first $72,500: $72,500 × 5.95% = $4,311.

On next $12,400 (72,500–84,900): $12,400 × 4.00% = $496.

Total employee = $4,807 (employer matches = $4,807).

Question 12

What is the maximum employee CPP contribution in 2025?

Answer 12

$4,807 (with employer match, $9,614 total).

Question 13

What is the combined (employee + employer) maximum CPP contribution in 2025?

Answer 13

$9,614.

Question 14

If a client earns $50,000, how much CPP do they contribute vs their employer in 2025?

Answer 14

Employee = $50,000 × 5.95% = $2,975. Employer = $2,975.