January 1 CPP hikes to hit employers’ payroll budgets, cut take-home wages for workers

As part of a seven year plan to raise CPP premiums in order to provide for greater CPP benefits decades from now, CPP premium rates for all workers are to rise by 3.8 per cent in 2021. The amount of income subject to premiums is also rising by 5.3 per cent. This means for workers earning $60,000 or more, both the employer and employee will see more than a 9 per cent increase in their CPP premiums.