How pension contributions work
You contribute to your pension through automatic payroll deductions. Your employer also contributes to your pension.
How much does my employer contribute?
Every time you contribute to your pension, your employer contributes too.
The employer contribution rates are:
- 9.43% of your salary up to and including the year’s maximum pensionable earnings (YMPE)
- 10.93% of your salary above YMPE
For example, in 2017 YMPE is $55,300. If your annual salary is $60,000, your employer would contribute $5,728.50 to your pension. This is calculated as follows:
9.43% x $55,300 = $5,214.79
10.93% x ($60,000-$55,300) = $513.71