Advertisement
An extra $408 a year will be coming off paycheques
Here are the forthcoming changes to the Canada Pension Plan agreed to Monday by the federal government and most of the provinces and territories:
— Increasing the income replacement rate to one-third from one-quarter, meaning the maximum CPP benefit will be about $17,478 instead of about $13,000.
How CPP changes could affect employees »
— Increasing premiums on employers and employees by one per cent, meaning an extra $408 a year coming off paycheques.
— Increased premiums will be phased in over seven years, starting in 2019.
— Increasing by 14 per cent to $82,700 the maximum amount of income subject to CPP.
Making sense of the CPP expansion »
— Expanding the refundable tax credit known as the federal working income tax benefit, to help low-income Canadians offset the increase in premiums.
— New portion of employee contributions to CPP will be tax deductible (not a tax credit).
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
Parents, here are the CCB payment dates for 2024, along with how much you can expect to receive each...
Investors in Canada and the U.S. look forward to post-election certainty, but concerns remain about interest rates and global...
Economy stalled in August, Q3 growth looks to fall short of Bank of Canada estimates.
Equifax launches foreign credit score sourcing program for newcomers, building on a similar service offered by Nova Credit.
Created By
Ratehub.ca
The central bank lowers its key interest rate to 3.75% and says it now must keep inflation at 2%....
Alternative investments may bring to mind hedge funds or real estate. But niche collectibles are increasingly a part of...
The streaming giant’s subscriber growth slows as gains from password-sharing crackdown subside.
Shoppers across Canada could see slight savings at small and medium-sized businesses soon, as two major credit card companies...
