Canada Pension Plan

Marginal note:Base unadjusted pensionable earnings for a year

• 53 (1) Subject to section 54, the base unadjusted pensionable earnings of a contributor for a year are an amount equal to

  • (a) the aggregate of

    • (i) his contributory salary and wages for the year, and

    • (ii) his contributory self-employed earnings for the year in the case of an individual described in section 10,

  • (b) the aggregate of

    • (i) the contributor’s earnings on which a base contribution has been made for the year under this Act, calculated as the aggregate of

      • (A) the contributor’s salary and wages on which a base contribution has been made for the year, and

      • (B) the amount of any base contribution required to be made by the contributor for the year in respect of the contributor’s self-employed earnings divided by the contribution rate for self-employed persons for the year,

    • (ii) his earnings on which a contribution has been made for the year under a provincial pension plan, calculated as the aggregate of

      • (A) such amount as is determined in prescribed manner to be his salary and wages on which a contribution has been made for the year by him under a provincial pension plan, and

      • (B) the amount of any contribution required to be made by the contributor for the year under a provincial pension plan in respect of the contributor’s self-employed earnings divided by the contribution rate for self-employed persons for the year, and

    • (iii) his basic exemption for the year, or

  • (c) his maximum pensionable earnings for the year,

  whichever is the least, except that if the amount calculated as provided in paragraph (a) is equal to or less than the amount of the contributor’s basic exemption for the year, the contributor’s base unadjusted pensionable earnings for that year are deemed to be zero.

• Marginal note:Year in which retirement pension commences

  (2) For the purposes of subsection (1), for the year in which a retirement pension becomes payable under this Act,

  • (a) the contributor’s basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year that are not excluded from the contributory period — and are before the retirement pension becomes payable — is of 12; and

  • (b) the contributor’s maximum pensionable earnings is equal to that proportion of the amount of the Year’s Maximum Pensionable Earnings that the number of months in the year that are not excluded from the contributory period — and are before the retirement pension becomes payable — is of 12.