The Canada Revenue Agency (CRA) announced today (November 1) that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2013 will be $51,100—up $1,000 from $50,100 in 2012. The new ceiling was calculated according to a CPP-legislated formula that accounts for the growth in average weekly wages and salaries in Canada.
Contributors who earn more than $51,100 in 2013 are not required or permitted to make additional contributions to the CPP.
The basic exemption amount for 2013 remains $3,500.
For 2013 the employee and employer contribution rates 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 2013 will be $2,356.20; the maximum self-employed contribution will be $4,712.40. The maximums in 2012 were $2,306.70 and $4,613.40.
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