CPP (Canada Pension Plan)
CPP is a contributory, earnings-related social insurance program that provides retirement, disability, and survivor benefits. Both employees and employers contribute 5.95% of pensionable earnings between the basic exemption ($3,500) and the Year's Maximum Pensionable Earnings (YMPE, $74,600 in 2026, up from $71,300 in 2025). Self-employed individuals pay both portions (11.90%).
Starting in 2024, CPP2 introduced a second ceiling for higher earners. Earnings between the first ceiling ($74,600 in 2026) and the second ceiling (the YAMPE, $85,000 in 2026, up from $81,200 in 2025) are subject to an additional 4% contribution from both employees and employers. CPP2 expands future retirement benefits for those who contribute above the first ceiling.
You can start receiving CPP retirement pension as early as age 60 (at a reduced rate) or defer it until age 70 (at an increased rate of 0.7% per month of deferral after 65). The standard age is 65. Your benefit amount depends on how much and how long you contributed. The maximum monthly benefit at age 65 is approximately $1,507.65 in 2026 (up from $1,433.00 in 2025 and $1,364.60 in 2024).
Related Terms
EI (Employment Insurance)
Employment Insurance provides temporary income support to Canadian workers who lose their jobs through no fault of their own, are sick, are pregnant, or are caring for a newborn or adopted child.
QPIP (Quebec Parental Insurance Plan)
QPIP is Quebec's parental insurance plan providing maternity, paternity, parental, and adoption benefits to eligible Quebec workers.
T4 (Statement of Remuneration Paid)
The T4 slip is issued by employers to employees by the last day of February each year.