News release

CPP pensionable earnings ceiling for 2007 up to $43,700

Ottawa, November 2, 2006... The Canada Revenue Agency announced today that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2007 will be $43,700-up from $42,100 in 2006. 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 $43,700 in 2007 are not required or permitted to make additional contributions to the CPP.

The basic exemption amount for 2007 remains $3,500. Individuals who earn less than that amount do not need to contribute to the CPP.

The employee and employer contribution rates for 2007 will 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 2007 will be $1,989.90, and the maximum self-employed contribution will be $3,979.80. The maximums in 2006 were $1,910.70 and $3,821.40.

This document is also available for download in .pdf format.

To receive notification by email when news releases are added to our Web site, you can subscribe to our electronic mailing list.

For media information