What is CPP 2?

CPP 2 is an additional contribution to the CPP made by those earning above the maximum pensionable earnings – a certain income level -- up to the additional maximum pensionable earnings – a higher income level.

The rate for this additional contribution in 2024 is 4% up to a maximum of $188 and $73,200 in pensionable earnings. The rate for this additional contribution in 2025 is again 4%, but up to a maximum of $396 dollars and $81,200 in pensionable earnings.

The CPP maximum pensionable earnings (above which the 5.95% rate (2024/2025) ceases to apply and the 4% is applied) is $68,500 for 2024 and $71,300 for 2025.

CPP 2 will be reported on box 16a of the 2024 T4.

New payroll rates apply for 2025 so be sure to keep your rates up to date to keep your calculations accurate!