CPP premiums set to rise in January, a bigger jump than planned

Jan. 1 is going to feel like Groundhog Day for all those paying into the Canada Pension Plan. Like last year, contributions are going up again by more than originally planned, and the reason again lies with the unique impacts of the pandemic on the labour market. 

Here’s a rundown of what’s happening.

Why CPP premiums are going up

The increase is part of a multi-year plan approved by provinces and the federal government five years ago to boost retirement benefits through the public plan by increasing contributions over time. The increases started in 2019.

A KPMG note in November said the