The Canada Pension Plan (CPP) provides contributors and their families with partial replacement of earnings in the case of retirement, disability or death.
With very few exceptions, every person over the age of 18 who works in Canada outside of Québec and earns more than a minimum amount ($3,500 per year) must contribute to the Canada Pension Plan (CPP). If you have an employer, you pay half the required contributions and your employer pays the other half. If you are selfemployed, you make both payments.
No matter how often you change jobs or where you work in Canada, your contributions may help you or your family become eligible for:
- Retirement pension
- Post-retirement benefit
- Disability benefits
- Benefits after a death
At the age of 70, you no longer contribute to the CPP, even if you are still working.
If you are self-employed, the maximum contribution is $5,088.60. Your contributions are based on your net business income (after expenses). You do not contribute on any other type of income, such as investment earnings. If, during a year, you contribute too much or earned less than the set minimum amount, your contributions will be refunded when you file your income taxes.