It’s been hard to find accurate information on the contribution (tax) increases resulting from the CPP changes announced earlier his week. On Wednesday the government released a table but some of the figures it shows are misleading.

The table shows contributions increases for a salary of $54,900 for all years despite the first row of data showing the projected YMPE for each year. Using the same figure for all years is unfair because it doesn’t account for wage inflation, which is exactly what the YMPE does. The YMPE in 2025 is estimated to be $72,000 which means an extra $1,380 in higher contributions rather then the $1,030 the government table shows.

What this means is that if you make $54,900 now and your salary increases at the estimated national average your taxes will be $350 higher per year then what the governments table shows.

If you make more then that your taxes will be even higher. With the introduction of a higher upper earnings limit that will be taxed at 8% those making over $82,700 in 2025 will have to pay $2,200 more then they would have before these changes.

A complete breakdown of my calculations can be found here: https://docs.google.com/spreadsheets/d/1SAEyyBLCW6NGrmtSe3of8MQ8vn7-SSBTefDW4fv9TP8/edit#gid=656946614