The Year’s Additional Maximum Pensionable Earnings (YAMPE) is the upper limit on earnings subject to second additional CPP contributions (CPP2). For 2026, YAMPE is $85,000, set 14% above the YMPE of $74,600. CPP2 was introduced January 1, 2024 as part of the CPP enhancement and applies to earnings between the YMPE and YAMPE.
How CPP2 contributions work
Employees pay 4.00% of earnings between the YMPE and YAMPE. The 2026 maximum employee CPP2 contribution is $416 (4% of $10,400). Employers match this. Self-employed pay both halves (8% total) for a maximum self-employed CPP2 contribution of $832.
Tax treatment
CPP2 contributions are tax-deductible from income (not just a non-refundable tax credit like base CPP). The deduction provides immediate tax savings at the contributor’s marginal rate.
YAMPE values
| Year | YMPE | YAMPE | CPP2 employee max |
|---|---|---|---|
| 2026 | $74,600 | $85,000 | $416.00 |
| 2025 | $71,300 | $81,200 | $396.00 |
| 2024 | $68,500 | $73,200 | $188.00 |