Canada CPP Contributions Calculator – CPP1 & CPP2

Since 2024, CPP (Canada Pension Plan) contributions run across two tiers — the base CPP1 and the enhanced CPP2 — each with its own earnings ceiling. Here's a quick breakdown of the 2024/2025 rates, plus a free calculator to get your exact contribution as an employee, employer, or self-employed worker.

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Canada CPP Contributions Calculator – CPP1 & CPP2

📋 2024 CPP Contribution Rates at a Glance

Tier	Earnings Range	Employee Rate	Employer Rate	Max (Employee)
CPP1 (base)	$3,500 – $68,500	5.95%	5.95%	$3,867.50
CPP2 (enhanced)	$68,500 – $73,200	4.00%	4.00%	$188.00

The first $3,500 of income is always exempt (the Basic Exemption), and it isn't prorated for part-year workers. YMPE ($68,500) caps CPP1; YAMPE ($73,200) caps the additional CPP2 tier. Employers match every dollar of employee contributions, and self-employed workers pay both sides.

💡 Example: An Ontario employee earning $75,000/year hits both ceilings — CPP1 contribution of $3,867.50 plus CPP2 of $188.00, for a total of $4,055.50/year, matched dollar-for-dollar by their employer.

❓ Frequently Asked Questions

What is CPP2?

CPP2 is the enhanced second tier of CPP, fully in effect since 2024. It applies a 4% rate to earnings between the YMPE ($68,500) and YAMPE ($73,200), with a maximum employee contribution of $188.00/year.

How much does my employer contribute?

Employers match every dollar of employee CPP1 and CPP2 contributions. At the maximum, that's $3,867.50 (CPP1) + $188.00 (CPP2) = $4,055.50 from the employer, for a combined total of $8,111.00.

Can I opt out of CPP?

Workers under 65 generally cannot opt out. Those 65–70 already receiving CPP/QPP benefits can file a CPT30 form to stop contributing. Workers over 70 are automatically exempt.

Does Quebec pay CPP?

No — Quebec residents contribute to QPP (Quebec Pension Plan) instead, administered separately by Retraite Québec, with its own rates and thresholds.

Is CPP a tax, and can I claim a credit?

CPP isn't income tax — it funds your future pension. Employee CPP contributions qualify for a non-refundable federal and provincial tax credit, and self-employed workers can deduct the employer-equivalent half as a business expense.

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Figures referenced in this article are based on official CRA guidance:

• CRA — CPP Contribution Rates, Maximums and Exemptions
• QuinetCalc Canada CPP Calculator — live calculator used in this article

This article is for general informational purposes only. Estimates only — for payroll-accurate figures, use the CRA's Payroll Deductions Online Calculator (PDOC) or consult a certified payroll professional.