Change made to the Canada Pension Plan for 2025

Change made to the Canada Pension Plan for 2025

The Canada Pension Plan, or CPP, is an integral part of retirement planning for most Canadians. It provides a basic income to contributors upon retirement or in case of disability, or to their beneficiary in the event of death. In 2025, a change might affect you.

Your employer deducts your contributions from your paycheck at each pay period until the annual limit is reached. Employers also contribute an equal amount to the scheme.

If you are self-employed, the contributions will be paid when you file your income tax return.

In 2024, many Canadians began making the second additional contribution. In 2025, the amount of these contributions will increase.

The amount of the second additional contribution depends on your income, so it does not apply to everyone. An employee who earns 82,000 dollars in 2025 will contribute approximately 375 dollars more to the scheme for the year.

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