New Deduction Rates for January 1, 2002

CANADA PENSION PLAN

	2002	2001
Year's maximum pensionable earnings	$39,100	$38,300
Year's annual basic exemption	$3,500	$3,500
Maximum contributory earnings	$35,600	$34,800
Contribution rate (employee)	4.7%	4.3%
Maximum contribution (employee)	$1,673.20	$1,496.40

EMPLOYMENT INSURANCE

	2002	2001
Maximum annual insurable earnings	$39,000	$39,000
Premium rate (employee)	2.20%	2.25%
Annual maximum premium (employee)	$858	$877.50

The rates above will come into effect with the January 10, 2002, payroll. Employees who were at the maximum pensionable earnings for Canada Pension Plan (CPP) will see their 2002 contribution increase by $176.80 to $1,673.20. The maximum premium for Employment Insurance for 2002 has dropped $19.50 to $858.

Employees who had reached the maximum CPP and EI premiums in 2001 will notice that with this first pay of 2002, these deductions have started again and will continue until their maximum contributions have been reached.