The maximum pensionable earnings under the Canada Pension Plan for 2010 will rise to $47,200, up from $46,300 in 2009, the Canada Revenue Agency said Tuesday.

The new ceiling is calculated according to a legislated formula that takes into account the growth in average weekly wages and salaries in Canada.

Contributors who earn more than $47,200 in 2010 are not required or permitted to make additional contributions to the CPP. The basic exemption amount for 2010 remains $3,500, and individuals who earn less than that amount do not need to contribute to the CPP.

The employee and employer contribution rates for 2010 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 for 2010 will be $2,163.15, and the maximum self-employed contribution will be $4,326.30. The maximums in 2009 were $2,118.60 and $4,237.20.

IE