November 2, 2005

CPP pensionable earnings ceiling for 2006

The Canada Revenue Agency (CRA) announced today that for 2006 the maximum pensionable earnings under the Canada Pension Plan (CPP) will be $42,100, up from $41,100 in 2005.

According to the CRA news release

"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 $42,100 in 2006 are not required or permitted to make additional contributions to the CPP.

The basic exemption amount for 2006 remains $3,500. Individuals who earn less than that amount do not need to contribute to the CPP."

For the full text of the news release and more information, please visit the CRA web site at:
http://www.cra-arc.gc.ca/newsroom/releases/2005/nov/nr051102-e.html

Posted by Taxes.ca Editorial Team [permalink]

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