So right now the max income subject to CPP is $51,400 ($54,900 - $3,500 basic exemption).
The current rate is 4.95%.
The annual maximum contribution would then be $2,544.30 (0.0495*51,400).
They are saying the premium is going up by 1%. New premium is now 5.95%, and the maximum income subject to CPP is now $82,700 (lets neglect the exemption for simplicity)
The new annual maximum contribution would then be $4,920.65 (0.0595*82,700).
That is an increase of $2376.35 a year! That is a lot of money. Plus my employer needs to match that.
Is my math correct?
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