Canada Pension Plan 2012

Canada Revenue Agency announces maximum pensionable earnings for 2012

The Canada Revenue Agency (CRA) recently announced that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2012 will be $50,100 — up from $48,300 in 2011.

Contributors who earn more than $50,100 in 2011 are not required or permitted to make additional contributions to the CPP.

The basic exemption amount for 2012 remains $3,500. Individuals who earn less than that amount do not have to contribute to the CPP.

The employee and employer contribution rates for 2012 will be unchanged at 4.95%, and the self-employed contribution rate will remain at 9.9%.

The maximum employer and employee contribution to the plan for 2012 will be $2,306.70, and the maximum self-employed contribution will be $4,613.40. The maximums in 2011 were $2,217.60 and $4,435.20, respectively.

 

CPP contribution rates, maximums and exemptions

Year Max. Annual Pensionable Earnings Basic Exemption Maximum Contributory Earnings Employee Contribution Rate (%) Max. Annual Employee Contribution Max. Annual Self – Employed Contribution
2012    $50,100 $3,500 $46,600 4.95 $2,306.70 $4,613.40
2011    $48,300 $3,500 $44,800 4.95 $2,217.60 $4,435.20
2010    $47,200 $3,500 $43,700 4.95 $2,163.15 $4,326.30
2009    $46,300 $3,500 $42,800 4.95 $2,118.60 $4,237.20
2008    $44,900 $3,500 $41,400 4.95 $2,049.30 $4,098.60
2007    $43,700 $3,500 $40,200 4.95 $1,989.90 $3,979.80
2006    $42,100 $3,500 $38,600 4.95 $1,910.70 $3,821.40
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