Maximum pensionable earnings increase, contribution rates remain unchanged at 4.95 per cent
The maximum pensionable earnings under the Canada Pension Plan for 2011 will increase slightly from 2010, while the basic exemption and contribution rates remain the same.
The Canada Revenue Agency will raise the maximum pensionable earnings for CPP to $48,300 in 2011, up from $47,200 in 2010.
The new ceiling was calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada.
Individuals who earn more than $48,300 in 2011 are not required or permitted to make additional contributions to the CPP.
The basic exemption amount for 2011 remains $3,500. Individuals who earn less than that do not have to contribute to the CPP.
The employee and employer contribution rates for 2011 remain unchanged at 4.95 per cent, and the self-employed contribution rate remains unchanged at 9.9 per cent.
The maximum employer and employee contributions for 2011 will be $2,217.60, and the maximum self-employed contribution will be $4,435.20. 2011 2010 Maximum pensionable earnings: $48,300 $47,200 Basic exemption: $ 3,500 $ 3,500 Maximum contributory earnings: $44,800 $43,700 Contribution rate (employee and employer): 4.95 % 4.95 % Maximum employee contribution: $2,217.60 $2,163.15 Maximum employer contribution: $2,217.60 $2,163.15 Maximum self-employed contribution: $4,435.20 $4,326.30
Rates and maximums:
