The Federal Government and the majority of the Provinces, including Alberta, have signed off on an increase to how much we'll be paying into the Canada Pension Plan.

That's not sitting well with the Canadian Federation of Independent Business.

CFIB Alberta Director Amber Ruddy says the increase was announced without much notice.

"Frankly, there has been no consultation with the general public or Albertans about this proposal. An Angus Reid poll shows than less than 10% of people are even aware of the issue. So the impact on businesses is going to be severe with 71% of small businesses opposing this mandatory hike."

Ruddy says it's an extra cost for employers to take on when they're already facing a rise in the minimum wage and the carbon tax in the New Year.

"67% will have to freeze or cut salaries. 46% say they'd have to reduce investment in their business. And 35% say they'd basically be forced to lay people off."

The Feds say the increase is to offset the number of Canadians without a defined pension plan through their employer.

Depending on your yearly income, the plan will you get 33% of your salary through CPP payments upon retirement, up from the current 25%.

The cap on CPP contributions has also been raised from $54,900, which is the current maximum income covered by the CPP to $82,700 by 2025, which means those making higher incomes will be able to earn CPP benefits on a larger portion of their income.

That works out to about $19,600 per year for people at the high end of the income spectrum when they retire in 2016 dollars.

The increase will be phased in between 2019 and 2025 starting at 1% and rising to an increase of 5.95%.

People earning $54,900 a year will see premiums increase by about $9 a month in 2019, rising to $43 a month when fully phased in.