Canada Pension Plan (R.S.C., 1985, c. C-8)

Act current to 2014-09-01 and last amended on 2013-12-12. Previous Versions

Marginal note:Amount of employer’s contribution
  •  (1) Every employer shall, in respect of each employee employed by the employer in pensionable employment, make an employer’s contribution for the year in which remuneration in respect of the pensionable employment is paid to the employee of an amount equal to the product obtained when the contribution rate for employers for the year is multiplied by the lesser of

    • (a) the contributory salary and wages of the employee for the year paid by the employer, minus such amount as or on account of the employee’s basic exemption for the year as is prescribed, and

    • (b) the maximum contributory earnings of the employee for the year, minus such amount, if any, as is determined in prescribed manner to be the salary and wages of the employee on which a contribution has been made for the year by the employer with respect to the employee under a provincial pension plan.

  • Marginal note:Succession of employers

    (2) If, in a year after 2003, one employer immediately succeeds another as the employer of an employee as a result of the formation or dissolution of a corporation or the acquisition — with the agreement of the former employer or by operation of law — of all or part of a business of the former employer, the successor employer may, for the application of subsections (1) and 8(1) and section 21, take into account the amounts paid, deducted, remitted or contributed under this Act by the former employer in respect of the year in relation to the employment of the employee as if they had been paid, deducted, remitted or contributed by the successor employer. If the employer takes those amounts into account with respect to the employer’s contributions, the employer shall also take them into account with respect to the employee’s contributions.

  • Marginal note:Self-employment succeeded by employment

    (3) For the application of subsections (1) and 8(1) and section 21, if a person, in a year after 2003, is self-employed, ceases to be self-employed and becomes an employee of a corporation controlled by the person, the corporation may

    • (a) take into account the amount of contributory self-employed earnings of the person in the year as contributory salary and wages paid by the corporation to the employee in that year; and

    • (b) take into account one half of the contributions by the person in respect of self-employed earnings in the year as an amount deducted, remitted or contributed in relation to employee’s contributions for that year, and one half of that amount as an amount remitted or contributed in relation to employer’s contributions for that year.

  • R.S., 1985, c. C-8, s. 9;
  • R.S., 1985, c. 30 (2nd Supp.), s. 3;
  • 2004, c. 22, s. 15;
  • 2011, c. 24, s. 174.

Contributions by Persons in respect of Self-Employed Earnings

Marginal note:Amount of contribution in respect of self-employed earnings
  •  (1) Every individual who is resident in Canada for the purposes of the Income Tax Act during a year and who has contributory self-employed earnings for the year shall make a contribution for the year of an amount equal to the product obtained when the contribution rate for self-employed persons for the year is multiplied by the lesser of

    • (a) the individual’s contributory self-employed earnings for the year, minus the amount by which the individual’s basic exemption for the year exceeds the aggregate of

      • (i) all amounts deducted as prescribed on account of the individual’s basic exemption for the year whether by one or more employers pursuant to section 8, and

      • (ii) all amounts deducted as prescribed by or under a provincial pension plan on account of any like exemption for the year whether by one or more employers pursuant to that plan, and

    • (b) the individual’s maximum contributory earnings for the year, minus the individual’s salary and wages, if any, on which a contribution has been made for the year and such amount, if any, as is determined in prescribed manner to be the individual’s salary and wages on which a contribution has been made for the year by the individual under a provincial pension plan.

  • Marginal note:Employment succeeded by self-employment

    (2) For the purpose of subsection (1), if a person, in a year after 2003, is an employee of a corporation controlled by the person, ceases to be employed by that corporation and becomes self-employed, the person may

    • (a) take into account the amount of contributory salary and wages paid by the corporation to the employee in the year as contributory self-employed earnings of the person in the year; and

    • (b) take into account the amounts deducted, remitted or contributed by the corporation in relation to the employee’s contributions and the employer’s contributions in respect of the person for the year as contributions by the person in respect of self-employment earnings in that year.

  • R.S., 1985, c. C-8, s. 10;
  • R.S., 1985, c. 30 (2nd Supp.), s. 3;
  • 2004, c. 22, s. 16.