Canada Revenue Agency Announces Maximum Pensionable Earnings for 2014
Ottawa, Ontario, November 1, 2013… The Canada Revenue Agency announced today that 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.
Source: Canada Revenue Agency – Nov 1, 2013