Effective January 1, 2007, all EI claims established December 31, 2006 or after will be subject to a maximum insurable earnings of $40,000. This is up from $39,000 in the previous year. EI maximum weekly earnings or benefits are now $423 per week up over $413 from 2006 period. Changes for CPP are also indicated at the start of the 2007 fiscal period.
Yearly Maximum Pensionable Earnings - $43,700
Basic Exemption - $3,500
Yearly Maximum Contributions - $1,989.90
Contribution Rate (employer/employee) - $3,979.80
The five year average maximum pentionable earnings (AMPE) for 2007 taxation year is $41,460. The AMPE is calculated based on the average of the earnings (YMPE) for the current year plus the four previous years.
The annual CPP/QPP reduction in the benefit payable under the PSSA for individuals who retire in 2007 will be based on the lesser of the five year average salary or the AMPE at the earlier of the termination date -or- the date the employee reaches age 65 -or- the date the employee becomes entitled to receive CPP/QPP disability benefits.
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