The Canada Customs and Revenue Agency announced today that the maximum pensionable earnings under the Canada Pension Plan for 2004 will rise to $40,500, up from $39,900 in 2003. CCRA says the increase reflects the growth in average weekly wages and salaries in Canada.

Contributors who earn more than $40,500 in 2004 are not required or permitted to make additional contributions to the CPP.

The basic exemption amount for 2004 remains $3,500. Individuals who earn less than that amount are not required to contribute to the CPP.

The employee and employer contribution rates for 2004 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 will be $1,831.50 and the maximum self-employed contribution will be $3,663.00. The maximums in 2003 were $1,801.80 and $3,603.60.