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Glossary term

CPP

Canada Pension Plan

🇨🇦Canada · Tax Year 2026Reviewed Plain-English
Definition

What is CPP?

CPP is Canada's mandatory earnings-based retirement program. Employees and employers each contribute 5.95% of pensionable earnings between $3,500 (basic exemption) and $71,300 (2026 YMPE). An enhanced tier (CPP2) adds 4% on earnings between $71,300 and $81,200. Quebec uses the parallel QPP.

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