Canada Pension Plan Enhancement – 2024

The Canadian Labour Movement has done it again! Amidst the cost-of-living crisis and economic uncertainties, kudos to Unions like PIPSC and the CLC for championing positive changes to the Canadian Pension Plan.

Thanks to their tireless advocacy, the Canada Pension Plan (CPP / QPP in Quebec) initiated a series of enhancements in 2019 to ensure that today’s workforce can look forward to a more financially secure retirement. These changes will require working Canadians and their employers to set aside larger portions of their earnings in exchange for a much-improved retirement benefit and reduce the number of seniors living in poverty.

Starting in 2024, a new, secondary CPP contribution (CPP2) will apply for workers who earn higher wages. This additional contribution, coupled with the existing CPP and first additional CPP contribution, is a significant step towards securing a brighter retirement for Canadians.

It’s important to note that there are now two salary ceilings determining individual contributions. The first is the standard CPP contributions, known as the year’s maximum pensionable earnings (YMPE), set at $68,500 in 2024.

The second, called the year’s additional maximum pensionable earnings (YAMPE), kicks in at $73,200 in 2024, with its cost being around 7% more than the first ceiling in the same year, increasing to 14% in 2025 and remaining thereon. 

Great news for PIPSC members with a defined benefit pension plan, including the Public Service Pension Plan -- the enhanced CPP benefits will be ‘stacked’ on top of your workplace pension. That means you’ll enjoy the full value of this improvement to CPP/QPP.

For more detailed insights into how these changes may affect your contributions, do check out The Canada Revenue Agency website. Your future self will thank you!