CCRA says increase reflects growth in average weekly wages and salaries in Canada
The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2004 will be $40,500 — up from $39,900 in 2003.
The Canada Customs and Revenue Agency said the increase reflects the growth in average weekly wages and salaries in Canada.
Contributors who earn more than $40,500 are not required or permitted to make additional contributions to the CPP.
The basic exemption amount for 2004 remains $3,500. Individuals who earn less than that amount do not need to contribute to the CPP.
The employee and employer contribution rates for 2004 will remain unchanged at 4.95 per cent and the self-employed contribution rate will remain unchanged at 9.9 per cent.
The maximum employer and employee contribution to the plan will be $1,831.50 and the maximum self-employed contribution will be $3,663. The maximum earnings in 2003 were $1,801.80 and $3,603.60.
The Canada Customs and Revenue Agency said the increase reflects the growth in average weekly wages and salaries in Canada.
Contributors who earn more than $40,500 are not required or permitted to make additional contributions to the CPP.
The basic exemption amount for 2004 remains $3,500. Individuals who earn less than that amount do not need to contribute to the CPP.
The employee and employer contribution rates for 2004 will remain unchanged at 4.95 per cent and the self-employed contribution rate will remain unchanged at 9.9 per cent.
The maximum employer and employee contribution to the plan will be $1,831.50 and the maximum self-employed contribution will be $3,663. The maximum earnings in 2003 were $1,801.80 and $3,603.60.
