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The Canada Revenue Agency says the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2014 will be $52,500, up from $51,100 in 2013.

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 $52,500 in 2014 are not required or permitted to make additional contributions to the CPP. The basic exemption amount for 2014 remains $3,500.

The employee and employer contribution rates for 2014 will remain unchanged at 4.95%, and the self-employed contribution rate will remain unchanged at 9.9%.

The maximum employer and employee contributions to the plan for 2014 will be $2,425.50 each, and the maximum self-employed contribution will be $4,851.00. The maximums in 2013 were $2,356.20 and $4,712.40.

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© Copyright 2014 Rogers Publishing Ltd. Originally published on benefitscanada.com

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