CPP pensionable earnings ceiling for 2007 up to $43,700
Ottawa, November 2, 2006… The Canada Revenue Agency announced today that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2007 will be $43,700-up from $42,100 in 2006. 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.
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Contributors who earn more than $43,700 in 2007 are not required or permitted to make additional contributions to the CPP.
The basic exemption amount for 2007 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 2007 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 2007 will be $1,989.90, and the maximum self-employed contribution will be $3,979.80. The maximums in 2006 were $1,910.70 and $3,821.40.