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Nov. 3, 2008-The Canada Revenue agency announced today that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2009 will be $46,300—up from $44,900 in 2008. The new maximum pensionable earnings amount was calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada.
Contributors who will earn more than $46,300 in 2009 will not be required or permitted to make additional contributions to the CPP.
The basic exemption amount for 2009 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 2009 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 for 2009 will be $2,118.60, and the maximum self-employed contribution will be $4,237.20. The maximums in 2008 were $2,049.30 and $4,098.60.
More information is available at the CRA website. |
