Well you just know if Chrétien does something good you will eventually pay for it; so here is the bad news!

The Canada Custom and Revenue Agency (CCRA) announced on November 4, 2002 that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2003 will be $39,900--up from $39,100 in 2002. The increase reflects the growth in average weekly wages and salaries in Canada.

Contributors who earn more than $39,900 in 2003 are not required or permitted to make additional contributions to the CPP.

The basic exemption amount for 2003 remains $3,500. Individuals who earn less than that amount do not need to contribute to the CPP.

The employee and employer contribution rates for 2003 will increase to 4.95% from 4.7%, and the self-employed contribution rate will rise to 9.9% from 9.4%. These increases are set out in the CPP legislation, following the 1997 agreement between the Government of Canada and provincial governments to provide for the security and sustainability of the CPP.

The maximum employer and employee contribution to the plan will be $1,801.80 and the maximum self-employed contribution will be $3,603.60. The maximums in 2002 were $1,673.20 and $3,346.40.

With the decrease in Employment Insurance and increase in Canada Pension the change will be negligible. This is the second year in a row that the Federal Government has used this exact same tactic.