Definition of Year’s Maximum Pensionable Earnings (YMPE)

What are Yr’s most pensionable earnings (YMPE)?

Canadian authorities determine the most pensionable earnings (YMPE) for the year. The YMPE determines the maximum amount on which to base contributions to the Canada or Quebec Pension Plan (CPP/QPP). The YMPE specifies the amount of earnings that can be used in calculating pension contributions for each year.

Key points to remember

  • The YMPE determines the maximum amount of earnings for CPP contributions.
  • The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2022 is $64,900.
  • The size of these funds depends on a person’s earnings during their working years, the age at which a person begins to receive their pension, and the number and length of time a person contributes to the CPP.

Understanding the Year’s Most Pensionable Earnings (YMPE)


The Canada Pension Plan (CPP) determines the maximum amount of earnings for which Canada Pension Plan contributions can be made. According to authorities in Canada, the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2022 is $64,900, compared to $61,600 in 2021. Contributors who earn more than $64,900 in 2022 can no longer contribute to the CPP.

Starting in 2024, a separate contribution rate will be applied for earnings above the YMPE (expected at 4% each for employers and workers).

Highest pensionable earnings and CPP contributions in the year

The Canada Pension Plan is like the social security program in the United States. It provides staff with a sequence of monthly funds upon retirement. The magnitude of these funds depends on a person’s earnings throughout his working years.

On June 20, 2016, Canada’s finance ministers agreed to strengthen the CPP. The deal increased the amount Canadian workers would get from CPP – from a quarter of eligible staff earnings to a third, with an increase in the earnings limit. The changes must be introduced regularly over seven years – from 2019 to 2025 – so that the effect is measured and fragmented.

The upgrade has the following options:

  • The income replacement level is increased to one third of workers’ income.
  • The higher income limit is approximately $82,700 for 2025.
  • There will be a seven-year phase-in, starting January 1, 2019; this may include a phase-in of the contribution rate over five years below the highest annual pensionable income followed by a phase-in over two years of the upper income limit.
  • The tax benefit on work income will be improved to help low-income people.
  • The enhanced portion of the worker’s CPP contributions is tax deductible.

$64,900

The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2022.

The higher premium rate on earnings below the YMPE ($64,900 in 2022) will be phased in over the first 5 years. In 2023, the CPP contribution rate, as estimated by the Finance Division of Canada, will be a proportionate level higher for employers and workers earning above the YMPE.

In 2024, a separate contribution rate (expected to be 4% each for employers and workers) will apply for earnings above the current YMPE.

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