Canada Sets 2027 CPP Maximum Pensionable Earnings
The federal government posted the 2027 Canada Pension Plan limits, including a reduced 5.75% contribution rate.
Updated on Nov. 13, 2026 in Retirement Planning
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The federal government has posted the Canada Pension Plan maximum pensionable earnings for 2027 at $76,700, up from $74,600 in 2026. The employee and employer contribution rate drops to 5.75% for the year.
Why it matters
The lower contribution rate and updated earnings ceilings change how much workers and employers pay into CPP and how much self-employed Canadians contribute. The reduction follows a recent actuarial review that found a lower base contribution rate was sufficient to finance the plan over the long term.
The 2027 employee and employer CPP contribution rate is 5.75%, with a maximum annual contribution of $4,209 each, compared with $4,230.45 in 2026. Self-employed Canadians face a maximum of $8,418 in 2027, and the second earnings ceiling rises to $87,400 from $85,000.
The players
Canada Pension Plan (CPP)
The Canada Pension Plan is the federal public pension program that provides retirement, disability and survivor benefits to eligible Canadians and is funded through mandatory contributions from workers and employers.
The details
Workers earning up to $76,700 in 2027 pay CPP contributions on that amount, with earnings between $76,700 and $87,400 subject to the CPP2 contribution. The federal government posted the figures on Monday, November 13, 2026, along with the associated contribution rates.
Timeline
2024: The second earnings ceiling was introduced as part of CPP enhancement.
Spring 2026: The contribution rate reduction was announced as an affordability measure in the federal economic update.
November 13, 2026: The federal government posted the 2027 maximum pensionable earnings and contribution rates.
2027: The reduced 5.75% contribution rate and new earnings ceilings take effect.
Roadmap
The 2027 figures extend the second earnings ceiling introduced under the 2024 CPP enhancement, which raised the amount of earnings subject to contributions. The contribution rate reduction marks a shift from the enhancement's trajectory toward a lower base rate after the latest actuarial review.
For an employee earning $70,000, the reduced contribution rate saves about $133 a year. Self-employed Canadians should note the maximum combined contribution of $8,418 when planning their 2027 budgets.
The takeaway
Check your 2027 pay stubs and self-employed tax planning against the new $76,700 earnings ceiling and 5.75% rate to confirm how much you will contribute.
Further reading
For more on how these changes affect savings, see Retirement Planning in Canada.
Source note: This article includes information reported by Investment Executive.
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