Just a heads up that the maximum contribution limits for the **Canada pension plan** (CPP) have new values for 2011.

### CPP maximum pensionable earning and maximum contribution amount

In 2011 the maximum pensionable earnings will be increasing to $48,300 (up from $47,200). What this amount means is that you will contribute to the CPP based on a percentage of your earnings up to $48,300. Any money earned over $48,300 will not have any CPP deduction applied to it.

The basic exemption amount is $3500 which means that you only make CPP contributions based as a percentage on any income above $3500.

The percentage charged for CPP contributions will be 4.95% for employees and their employers (they both pay 4.95%).

This 4.95% applies to any income earned above $3500 and below $48,300.

The maximum for the year will be $2,217.60 which will apply to anyone making $48,300 or more. This amount is 4.95% of ($48,300 – $3500).

Self-employed persons have to pay both the employee and employer contributions so their CPP rate will be 9.9% and the maximum contribution for someone earning $48,300 or more will be $4,435.20.

Here are the EI premiums for 2011.