Effective January 1, 2025, the Canada Pension Plan (CPP) has introduced significant updates that impact both employers and employees. Understanding these changes is crucial for accurate payroll processing and financial planning.
Key Updates for 2025
- YMPE increased to $71,300
- New YAMPE introduced at $81,200
- CPP2 contributions now apply to earnings between the YMPE and YAMPE at 4.00% (employer and employee)
What This Means
- Employers must update payroll systems
- Higher earners will see larger deductions
- Self-employed individuals pay both portions
Need help navigating the 2025 changes? Muia Consulting is here to support your payroll and compliance needs.
