New contribution levels have been announced by the Canada Revenue Agency for the Canada Pension Plan (CPP) and Employment Insurance (EI).

For 2014, the Year’s Maximum Pensionable Earnings (YMPE), on which CPP contributions are based, has been increased from $51,100 (2013 level) to $52,500. This means that CPP contributions will be deducted at a rate of 4.95% up to a maximum contribution level of $2,425.50.

The annual maximum insurable earnings for EI have been set at $48,600 for 2013. EI contributions are deducted at a rate of 1.88% to a maximum of $913.68.

Employees who earn more than the YMPE will see these deductions cease at the point in the year when their year-to-date earnings exceed $52,500.

Staff and Faculty can gain further information on deductions on our Payroll Deductions [1] webpage.