News release

CPP pensionable earnings ceiling for 2001 up to $38,300

Ottawa, November 3, 2000... The Canada Customs and Revenue Agency announced today that the maximum pensionable earnings under the Canada Pension Plan (CPP) for the year 2001 will be $38,300 - a $700 increase over 2000.

Contributors who earn more than the $38,300 ceiling on pensionable earnings in the year 2001 are not required or allowed to contribute more to the CPP.

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

The year's basic exemption for 2001 stays at $3,500. Individuals who earn less than that amount do not need to contribute to the CPP. Employee and employer contribution rates for the year 2001 will increase to 4.3% from 3.9%, and the self-employed contribution rate will rise to 8.6% from 7.8%, as provided in legislation.

The maximum employee contribution to the plan will be $1,496.40, and the maximum self-employed contribution will be $2,992.80.

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