The Canada Customs and Revenue Agency announced today that the maximum pensionable earnings under the Canada Pension Plan for 2002 will be $39,100 — up from $38,300 in 2001.

The increase reflects the growth in average weekly wages and salaries in Canada. Contributors who earn more than the $39,100 “ceiling” on pensionable earnings in 2002 are not required nor permitted to make additional contributions to the CPP. The year’s basic exemption for 2002 remains $3,500. Individuals who earn less than that amount do not need to contribute to the CPP.

The employee’s and employer’s contribution rates for 2002 will increase to 4.7% from 4.3% and the self-employed contribution rate will rise to 9.4% from 8.6%. The maximum employer and employee contribution to the plan will be $1,673.20 and the maximum self-employed contribution will be $3,346.40, up from $1,496.40 and $2,992 .80 respectively.