News release

CPP pensionable earnings ceiling for 1999 up to $37,400

OTTAWA, November 25, 1998...Revenue Canada announced today that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 1999 will be $37,400 - a $500 increase over 1998.

Contributors who earn more than the $37,400 "ceiling" on pensionable earnings in 1999 are not required or permitted to make additional contributions to the CPP.

The new "ceiling" was calculated according to a Canada Pension Plan formula that takes into account the changes in average weekly wages and salaries in Canada.

The year's basic exemption for 1999 remains $3,500. Individuals who earn less than that amount do not need to contribute to the CPP. The employee's and employer's contribution rates for 1999 will increase to 3.5% from 3.2% and the self-employed contribution rate will rise to 7.0% from 6.4%.

The maximum employee contribution to the plan will be $1,186.50 and the maximum self-employed contribution will be $2,373.00.

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For media information, contact:

Colette Gentes-Hawn
Media Relations
(613) 957-3522

48T/98