How much more do I contribute now?

Roughly $1 000-$2 500 more per year for high-income employees vs pre-2019.

Self-employed deductible?

Yes \u2014 both halves deductible from net business income.

Maximum contribution 2027?

Roughly $4 200 Tier 1 + $160 Tier 2 employee \u2014 TBD exact.

No \u2014 CPP mandatory for all earnings.

Cross-border worker \u2014 both CPP and US SS?

Possibly \u2014 totalization agreement may apply.

CPP Enhanced 2027 Canada

CPP 2027 enhanced: 33% replacement rate (was 25%). 5.95% Tier 1 + 4% Tier 2 (over YMPE $74 200). Max contribution +$4 500 self-employed.

Pensionable Earnings (CAD)

Employment Type

Total CPP

—

Tier 1

—

Tier 2

—

Future Replacement

—

Pensionable earnings	—
YMPE 2025 (T1 limit)	—
YAMPE (T2 limit)	—
Basic exemption	—
Rates	—
Tier 1 contribution	—
Tier 2 contribution	—
Total contribution	—
Est. future benefit (33%)	—

Canada's CPP enhancement (started 2019, complete 2025) boosts replacement rate from 25% to 33,33%. From 2024, Tier 2 contributions begin on earnings above YMPE — 4% (employee) or 8% (self-employed) up to YAMPE.

Enhanced CPP — Tier 1 + Tier 2

Tier 1: 5.95% employee + 5.95% employer on earnings between $3 500 and YMPE ($70 200 in 2025). Tier 2: 4% employee + 4% employer on earnings between YMPE and YAMPE ($74 200 in 2025).

Self-Employed Pay Double

Self-employed pay both employee AND employer halves: 11.9% Tier 1 + 8% Tier 2 = combined ~12-15% on pensionable earnings depending on income level.

Future Benefit Improvement

By 2065 (full phase-in), CPP enhanced contributors will receive 33,33% replacement (up from 25%). Current retirees see only partial enhancement based on years contributing under new regime.

Last updated May 2026. Sources: Canada.ca CPP Enhancement.