Glossary
Second Additional CPP (CPP2)
Second Additional CPP, or CPP2, is a higher tier of Canada Pension Plan contributions that applies to earnings above the first CPP ceiling, up to a second, higher ceiling. Like base CPP it is split evenly between employee and employer and remitted to the Canada Revenue Agency, so it adds to payroll cost for higher-paid staff. It was phased in to lift future retirement benefits for people who earn above the original cap. Our CPP, CPP2 and EI guide shows how the two tiers stack together.
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