Your net pay may be lower in January

Canada Pension Plan (CPP) and Employment Insurance (EI) deductions have a yearly maximum earnings limit. Once these limits are reached during the calendar year, the deductions stop for the rest of the calendar year.  

Contributions to CPP and EI will commence again in January of each year, which will reduce net pay.  

Effective January 1, 2025, a second, higher earnings limit of $81,200—known as the Year’s Additional Maximum Pensionable Earnings (YAMPE)—will be used to determine second additional CPP contributions (CPP2). This CPP2 is part of the CPP enhancement. 

Prepare for tax season: 2024 tax information and what to expect for 2025