2022 CPP/QPP and Registered Plans Deduction Limits

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Effective January 1, 2022 the contribution deduction rate for Canada Pension Plan (CPP) will be increasing from 5.45% to 5.7% of your gross earnings.  Effective January 1, 2022 the contribution deduction rate for Quebec Pension Plan (QPP) will be increasing from 5.9% to 6.15% of your gross earnings.

The reason for this change:

A one percent increase to the CPP/QPP contribution rate is being phased in gradually.  This increase began in 2019 and will be completed in 2023.

Benefit of this proposed change:

Currently the income replacement from CPP/QPP for those who contribute for 40 years is 25% of their average pensionable earnings.  With this enhancement, anyone participating in the new proposed plan for 40 years will have an income replacement of 33% of their average pensionable earnings.

Future increases are outlined below:

                  CPP 2022………….5.7%                      CPP 2023………….5.95%

For every $100 of earnings the increase in CPP contribution will be an additional 20 cents.

                  QPP 2022…………6.15%                     QPP 2023…………6.4%

For every $100 of earnings the increase in QPP contribution will be an additional 20 cents.

For more information on these retirement programs, please visit:

  CPP                 QPP

The CRA information updated contribution and deduction limits for registered plans in 2022, including, pension/RRSP/ YMPE and TFSA limits can be found here.

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