The Year’s Maximum Pensionable Earnings (YMPE) is the upper limit on income that is subject to base Canada Pension Plan contributions in a given year. For 2026, the YMPE is $74,600. Earnings between the Year’s Basic Exemption ($3,500) and the YMPE are subject to base CPP contributions of 4.95% (employee) plus 1.00% (first additional) = 5.95% total employee rate.
How YMPE is set
The Canada Revenue Agency announces the YMPE each November based on changes to the average industrial wage in Canada. The YMPE rises most years, reflecting wage inflation. Increases to the YMPE flow through to higher maximum CPP contributions and, eventually, higher maximum CPP retirement benefits.
YMPE versus YAMPE
Starting in 2024, a second tier called YAMPE (Year’s Additional Maximum Pensionable Earnings) extends CPP coverage to higher earners. YAMPE is set 14% above YMPE in 2026 ($85,000). Earnings between YMPE and YAMPE are subject to CPP2 contributions of 4.00% (employee).
Recent YMPE values
| Year | YMPE | YAMPE |
|---|---|---|
| 2026 | $74,600 | $85,000 |
| 2025 | $71,300 | $81,200 |
| 2024 | $68,500 | $73,200 |
| 2023 | $66,600 | n/a |