DEFINITION of 'Year's Maximum Pensionable Earnings - YMPE'
A figure set each year by the Canadian government determining the maximum amount on which to base contributions to the Canada or Quebec Pension Plan (C/QPP). The YMPE specifies the earnings amount that can be used in calculating pension contributions for each year.
BREAKING DOWN 'Year's Maximum Pensionable Earnings - YMPE'
The year's maximum pensionable earnings is defined each year by the Canada Pension Plan (CPP). The amount determines the maximum earnings amount in which contributions to the Canada Pension Plan can be made. For example, in 2008 the year's maximum pensionable earnings was $44,900. Workers earning more than that amount would only contribute to CPP on the first $44,900 of earnings.