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Canada CPP Guide (Canada Pension Plan)

the Canada Pension Plan (CPP) in Canada. The CPP is a mandatory contributory social insurance program for the Canadian workers aged 18+. For the 2025 year, the CPP contribution rate is 5.95% (employee share) on the pensionable earnings between $3,500 (the "basic exemption") and $71,300 (the "Yearly Maximum Pensionable Earnings" or the "YMPE"). The enhanced CPP2 contributions (the "second earnings ceiling") apply at 4% on the earnings above $71,300 up to $81,200 (2025). The total maximum CPP contribution (the employee share, including the CPP2) is $4,434 (the 2025 rate). The self-employed individuals pay both the employee and the employer shares (the total of 11.9% + 8% for the CPP2 on the earnings above the YMPE). The CPP retirement benefit is up to $1,433 per month (2025, the "maximum monthly retirement pension" at age 65). The CPP early retirement (from age 60 to 64) reduces the benefit by 0.6% per month (7.2% per year), up to 36% at age 60. The CPP late retirement (from age 65 to 70) increases the benefit by 0.7% per month (8.4% per year), up to 42% at age 70. The CPP death benefit is a one-time payment of $2,500 (the flat rate, unchanged since 1997). The CPP survivor's pension is up to 60% of the deceased contributor's retirement pension (the amount depends on the age and the contribution history). The CPP children's benefit is $294 per month (2025) for the children of the disabled or the deceased contributors. The CPP disability benefit is up to $1,637 per month (2025). The CPP is administered by Service Canada (the "CPP program" under the Employment and Social Development Canada). The Quebec Pension Plan (QPP) is the separate program for the workers in Quebec (administered by Revenu Québec with the different contribution rates and the benefit rules).

CPP Contributions (2025)

• First ceiling (YMPE): $71,300 (the "Yearly Maximum Pensionable Earnings"). The employee contribution is 5.95% on the earnings between $3,500 and $71,300. The maximum basic CPP contribution is $4,034 (the employee share).
• Second ceiling (CPP2): $81,200 (the "Yearly Additional Maximum Pensionable Earnings"). The employee contribution is 4% on the earnings between $71,300 and $81,200. The maximum CPP2 contribution is $396 (the employee share).
• Total CPP contribution: $4,430 (the employee share). The self-employer pays $8,860 (both the employee and the employer shares). The CPP contributions are deductible (the employee share generates the 15% non-refundable tax credit; the employer share is deductible as the business expense).
• CPP exemption: The first $3,500 of the pensionable earnings is exempt from the CPP contributions (the "basic exemption"). The self-employed individuals must pay both the shares.

CPP Retirement Benefits

• At age 65: The maximum CPP retirement pension is $1,433 per month (2025). The actual benefit depends on the average earnings over the contributory period (the "Drop-out" provisions remove the 8 years of the lowest earnings from the calculation).
• Early retirement (age 60-64): The benefit is reduced by 0.6% per month (7.2% per year) before age 65. The reduction at age 60 is 36%. The benefit of $1,433 at age 65 would be $917 at age 60.
• Late retirement (age 65-70): The benefit is increased by 0.7% per month (8.4% per year) after age 65. The increase at age 70 is 42%. The benefit of $1,433 at age 65 would be $2,035 at age 70.
• Post-retirement benefit (PRB): The CPP recipients who continue to work between age 60 and 65 (or later) make the CPP contributions and receive the PRB — the additional pension earned after the retirement. The PRB increases the CPP benefit for the working retirees.
• CPP sharing: The spouses can share the CPP retirement benefits (the "CPP assignment") if both are 60+ and have been living together for at least 12 months. The CPP sharing can reduce the combined tax bill by shifting the income from the higher-income spouse to the lower-income spouse.

CPP Disability & Survivor Benefits

• CPP disability benefit: Up to $1,637 per month (2025). The benefit is payable to the contributors who are unable to work due to the severe and prolonged disability. The contributor must have made the CPP contributions in 4 of the last 6 years (or 3 of the last 6 years for the "substantially gainful" employment).
• CPP death benefit: A one-time $2,500 payment to the estate or the designated beneficiary of the deceased CPP contributor. The death benefit is a flat amount (not based on the contributions).
• CPP survivor's pension: Up to 60% of the deceased contributor's retirement pension. The survivor's pension is reduced by the survivor's age (the "age-related reduction" — 100% at age 65+, 36% at age 35, increasing to 100% by age 65). The maximum survivor's pension at age 65 is $860 per month (60% of $1,433).
• CPP children's benefit: $294 per month (2025) for each child under 18 (or under 25 if the child is in the full-time education) of the disabled or the deceased CPP contributor.
• Combined benefits: The CPP survivor's pension and the CPP retirement pension (or the disability benefit) are combined but limited to the maximum retirement pension at age 65. The combined benefit cannot exceed $1,433 per month (2025).

QPP (Quebec Pension Plan)

• QPP contribution rate (2025): 6.4% (employee share) on the pensionable earnings up to $71,300 (the "maximum pensionable earnings" — the same YMPE as the CPP). The QPP2 contributions (the "enhanced QPP") are 4% on the earnings above $71,300 up to $81,200. The total maximum QPP contribution (employee share) is $4,445.
• QPP benefits: The QPP rules are aligned with the CPP (the retirement pension, the disability benefit, the survivor's pension, the death benefit, and the children's benefit). The QPP retirement pension (the "rente de retraite") is up to $1,433 per month at age 65 (2025).
• QPP vs CPP: The QPP offers the more flexible early retirement (the "flexibility" — the QPP can be taken as early as age 60 with the same reduction rates). The QPP disability benefit (the "rente d'invalidité") has the different qualification rules (the "contributory period").

For the OAS and the GIS rules, see our OAS & GIS Guide →. For the pension income splitting and the age amount, see our Pension Income Splitting Guide →.