The Canada Revenue Agency announced today that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2011 will be $48,300—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.
Contributors 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 amount do not have to contribute to the CPP.
The employee and employer contribution rates for 2011 will remain unchanged at 4.95%, and the self-employed contribution rate will remain unchanged at 9.9%.
The maximum employer and employee contribution to the plan for 2011 will be $2,217.60, and the maximum self?employed contribution will be $4,435.20. The maximums in 2010 were $2,163.15 and $4,326.30.