CPP Calculator & CPP Payments Dates

Canada Pension Plan was launched in 1965 by Prime Minister, this plan helps contributors a regular pension payment. Every individual who reaches a minimum of 3500$ in annual salary and is between 18 and 65 years old. Pension benefits start as early as at the age of 65 but paid 100% from 65 years old.

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Rates and Maximum for CPF in 2017

To conclude the amount of CPP contribution, you must take into account these variables on the 2017 gross income

  • General contribution rate (employee and employer): 4.95%
  • Self-employed contribution rate: 9.9%
  • Basic exemption amount (unchanged since at least 1997): 3 500$
  • Manual maximum allowable gross income to contribute (year’s maximum pensionable earnings, YMPE): 55 300$

The usual contribution rate for CPP is same from 2003 and it will be calculated on gross income, not after-tax income

CPP Calculator:

For and employee or employer

CPP Contribution – (the least number between – Gross revenue and year’s maximum pensionable earnings YMPE in 2017 – basic exemption) X (Employee or Employer rate / 100)

This calculator will help you to calculate contributions to be needed in the Canadian Pension Plan 2017 earnings

 

For example: Gross earnings in 2017 = 15000$

Contribution = (45.000$ – 3500$) x (4.95 / 100)

41500$ x 0.0495 = 2054.25$

For a self-employed

Canada pension plan contribution = exactly the same calculation formula as mentioned previously except for the self-employed rate

CPP table of Rates

Here are the changed contributions tables to the CPP for the last 2 years

Contribution in 2017

Maximum annual earnings for CPP             55 300$
CPP contribution rate of the employee, employer 4.95%
CPP contribution rate for self-employed 9.9%
Basic exemption amount             3 500$
The maximum contribution amount for employee, employer 2 564.10$
The maximum contribution amount for self-employed 5 128.20$

Contribution in 2016

Maximum annual earnings for CPP 54 900$
CPP contribution rate of the employee, employer 4.95%
CPP contribution rate for self-employed 9.9%
Basic exemption amount 3 500$
 

The maximum contribution amount for employee, employer

2 544.30$
The maximum contribution amount for self-employed 5088.60$

CPP Payments Dates

Here is the list of CPP payments, if you have signed up a direct deposit. Your  payments for Canada Pension Plan are automatically deposited in your account on the below dates in 2017:

  • January 27
  • February 24
  • March 29
  • April 26
  • May 29
  • June 28
  • July 27
  • August 29
  • September 27
  • October 27
  • November 28
  • December 20

If you are not requested payment through direct deposit, you will generally receive your payments within the last 3 business days of each month. But the direct deposit is secure, convenient and reliable

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To sign up for direct deposite all you require:

  • Your social insurance number
  • Your branch transit number and your account number
  • The name of your bank or financial institution

Also Read:

What is CPP & Benefits Of Canada Pension Plan

How to Apply For CPP Retirement Pension

How to Apply For CPP Disability Benefits

Canada Pension Plan Disability – Eligibility & Benefits

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