Federal Government Announces New CPP and EI Maximums

The federal government has announced new maximum pensionable earnings and maximum insurable earnings limits under the Canada Pension Plan and Employment Insurance program.
Categories: Employee Benefits
Nov 9th, 2021 | By: CapriCMW

The federal government has announced new maximum pensionable earnings and maximum insurable earnings limits under the Canada Pension Plan and Employment Insurance program for 2022.


The maximum pensionable earnings (the maximum income amount used to calculate contributions to the CPP) is increasing from $61,600 to $64,900 for 2022.

This limit is determined based on a CPP legislated formula which factors in growth in average weekly wages and salaries across Canada.

Individuals that earn more than $64,900 in 2022 will not be required or allowed to make additional CPP contributions. The basic exemption amount for 2022 is remaining at $3,500. 

The employee and employer contribution rates for 2022 will be 5.70 per cent, up from 5.45 per cent in 2021. The self-employed contribution rate is also rising, from 10.9 per cent in 2021 to 11.4 per cent in 2022. The increase in contribution rate is a result of the ongoing implementation of the CPP enhancement which began in 2019.

The maximum employer and employee contribution to the plan for 2022 will be $3,499.80 (previously $3,166.45) and the maximum self-employed contribution will be $6,999.60 (previously $6,332.90).


The maximum insurable earnings (the maximum income amount used to calculate EI premiums) is increasing from $56,300 to $60,300. The new employee premium rate will be $1.58 for every $100, meaning the maximum amount in EI premiums that an employee will pay is $952.74 (previously $889.54). Employers that are not under  the EI Premium Reduction Program will continue to pay 1.4 times the employee rate ($2.21 in 2022).

The maximum weekly benefit to be paid out under EI beginning January 2022 will be $638 (up from $595). 

Impact on Employers Under the EI Premium Reduction Program

Employers that provide short term disability plans to employees may qualify to pay less than the standard employer EI premium rate as long as certain criteria are met. If you are currently paying a reduced rate and the weekly benefit payable under your short term disability plan is less than $638, you may need to amend your plan to continue meeting eligibility requirements. Contact your Group Benefits and Retirement Advisor to see if you may be affected.

Your CapriCMW Benefits team is here to help with short and long-term strategies around the structure of your employee benefits and retirement programs. 

Contact a CapriCMW Benefits Advisor for more information.

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