- The 2026 YMPE is $74,600 and the YAMPE is $85,000.
- Maximum employee contributions are $4,230.45 for CPP and $416.00 for CPP2.
- The maximum pension at 65 is $1,507.65 a month; starting at 60 cuts it by 36%, at 70 raises it by 42%.
The Canada Pension Plan (CPP) is a mandatory retirement pension for workers in British Columbia. You and your employer each pay in while you work, and you collect a monthly pension from age 60 to 70. BC has no separate pension plan, so CPP applies in full (Quebec has its own QPP).
2026 CPP contribution rates
| Item | 2026 |
|---|---|
| Basic exemption | $3,500 |
| Year's maximum pensionable earnings (YMPE) | $74,600 |
| Year's additional maximum pensionable earnings (YAMPE) | $85,000 |
| Employee rate on earnings from the exemption to the YMPE | 5.95% |
| CPP2 rate on earnings between YMPE and YAMPE | 4% |
| Maximum employee CPP | $4,230.45 |
| Maximum CPP2 | $416.00 |
| Maximum combined employee total | $4,646.45 |
Your employer matches your contributions. If you are self-employed you pay both halves: 11.9% on earnings up to the YMPE and 8% on CPP2 earnings. You get a deduction for the employer half and for the enhanced and CPP2 portions, and a credit for the base employee portion.
What you pay at common salaries
| Salary | CPP (employee) | EI (employee) |
|---|---|---|
| $40,000 | $2,171.75 | $652.00 |
| $60,000 | $3,361.75 | $978.00 |
| $80,000 | $4,446.45 | $1,123.07 |
| $100,000 | $4,646.45 | $1,123.07 |
CPP retirement pension
The maximum CPP pension at 65 is $1,507.65 a month in 2026, but very few people qualify for it. It requires maximum contributions for about 39 years. Your pension depends on your average earnings relative to the YMPE over your working life, with the lowest 17% of your earning months dropped.
Starting CPP early or late
You can start between 60 and 70. The pension is reduced by 0.6% for every month before 65 (36% at 60) and increased by 0.7% for every month after 65 (42% at 70).
| Start age | Monthly pension | Example: $70,000 average earnings, 39 years |
|---|---|---|
| 60 | 64% of the age-65 amount | $905 |
| 65 | 100% | $1,415 |
| 70 | 142% | $2,009 |
Ignoring tax, inflation and investment returns, starting at 65 instead of 60 breaks even at about age 74, and waiting from 65 to 70 breaks even at about age 82. Health, other income, taxes and whether you are still working all matter more than the arithmetic. Because CPP is indexed to inflation and paid for life, delaying works as longevity insurance.
Planning notes
- Check your contribution history in your My Service Canada Account before you apply.
- CPP is taxable. Pairing it with OAS and RRIF withdrawals can trigger the OAS recovery tax: see our OAS guide.
- Estimate your own pension with the CPP calculator. It is an estimate; Service Canada's statement is the official number.
Frequently asked questions
Do I pay CPP on all my income?
No. You pay on earnings between $3,500 and the YMPE ($74,600), plus CPP2 on earnings up to $85,000.
Do employers pay CPP too?
Yes. Employers match the employee's CPP and CPP2 contributions.
What is CPP2?
A second contribution tier introduced in 2024 on earnings between the YMPE and the YAMPE. It increases your future pension.
Is BC's CPP different from Quebec's?
Yes. Quebec runs the QPP. BC workers are covered by the CPP.