Pension plan change increases contribution costs

The New Year marked the start of new rules for Canada’s Pension Plan. The change introduces a second earnings ceiling for middle-income earners making more than $73,200.

For employers, this means changes to the amount they need to withhold for eligible employees. And for the self-employed, the changes impact CPP contributions based on net income.

The federal government says the enhancement will increase the maximum CPP retirement pension by about 50% for people who have recently entered the workforce.