The CPP/QPP maximum pensionable earnings figure will be $46,300 for 2009. This is up 3.1% from $44,900 in 2008. 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.
Individual contributors who earn more than $46,300 in 2009 are not required or permitted to make additional contributions to the CPP/QPP.
The basic exemption of $3,500 remains unchanged for 2009. Therefore, maximum contributory earnings are $42,800. Individuals who earn less than that amount do not need to contribute to the CPP/QPP.
The employee and employer contribution rates for 2009 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 2009 will be $2,118.60 and the maximum self-employed contribution will be $4,237.20. The maximums in 2008 were $2,049.30 and $4,098.60, respectively.
Revenu Quebec has also announced that the 2009 figures will be the same under the Quebec Pension Plan (“QPP”).