Canada Revenue Agency announces maximum pensionable earnings for 2012
On November 1, 2011, the Canada Revenue Agency announced the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2012. The rate remains unchanged at 4.95% for employee and employer, and 9.9% for self-employed. Contributors who earn more than $50,100 in 2012 are notrequired or permitted to make additional contributions to the CPP. Below is the comparison with the year 2011 & 2010.
| 2012 | 2011 | 2010 | |
|---|---|---|---|
| Maximum Pensionable Earnings | $50,100 | $48,300 | $47,200 |
| Basic Exemption | $3,500 | $3,500 | $3,500 |
| EMPLOYER CONTRIBUTION | |||
| Maximum employer contribution | $2,306.70 | $2,217.60 | $2,163.15 |
| Contribution rate | 4.95% | 4.95% | 4.95% |
| EMPLOYEE CONTRIBUTION | |||
| Maximum employee contribution | $2,306.70 | $2,217.60 | $2,163.15 |
| Contribution rate | 4.95% | 4.95% | 4.95% |
| SELF-EMPLOYED CONTRIBUTION | |||
| Maximum self-employed contribution | $4,613.40 | $4,435.20 | $4,326.30 |
| Contribution rate | 9.9% | 9.9% | 9.9% |