How Do CPP Contributions Work?Įach year, you and your employer contribute a percentage of your income to the Canada Pension Plan, up to a prescribed maximum, known as the Year’s Maximum Pensionable Earnings (YMPE).įor 2020, the YMPE is $58,700. To apply for the CPP, you must be at least 60 years old, and have made at least one valid CPP contribution during your working years. It provides Canadians with a monthly pension for life, based on how much they contributed to the plan during their working years. The Canada Pension Plan (CPP) is a guaranteed retirement pension administered by the Government of Canada.
