CPP/QPP – Second Contributions

Higher income earners are subject to a second additional CPP/QPP contribution on earnings above the annual maximum pensionable earnings (YMPE). This deduction is to continue until the employee reaches the annual additional maximum pensionable earnings (YAMPE).

To view CPP/QPP limits, visit the Compliance Centre.

Example:

This means that when an employee reaches their maximum CPP/QPP contribution, based on the first YMPE ceiling, you must begin deducting the second additional CPP/QPP contribution until the YAMPE threshold is reached.

Annual maximum pensionable earnings: $71,300 for 2025

Annual additional maximum pensionable earnings: $81,200 in 2025

Note: For employees turning 70 in the year, CPP2 may be deducted prior to the employee reaching the first YMPE ceiling. This occurs when their prorated annual earnings calculate as being over the first YMPE ceiling.

Note: When entering a CPP/QPP adjustment, make sure to enter the amount in the correct field.

These second contribution amounts will:

  • display separately on the Payroll Register (CPP2 or QPP2)

  • report to tax forms as follows:

    T4 Box 16A (CPP), T4 Box 17A (QPP)

    RL-1 Box B-2 (CPP), RL-1 Box B.B (QPP).