The Canada Revenue Agency announced November 2, 2007 that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2008 will be $44,900 – up from $43,700 in 2007. Individual contributors who earn more than $44,900 in 2008 are not required or permitted to make additional contributions to the CPP.
- Basic Exemption to CPP – the amount for 2008 remains unchanged at $3,500. Any individuals who earn less than that amount do not need to contribute to the CPP.
- Employee & Employer Contribution Rates – the percentage for 2008 remains unchanged at 4.95%, and the self-employed contribution rate remains unchanged at 9.9%.
- Maximum employer and employee contribution – the maximum contribution to the plan for 2008 will be $2,049.30 (2007 was $1,989.90) and the maximum self-employed contribution will be $4,098.60 (2007 was $3,979.80)