Canada Pension Plan

Marginal note:Amount of employee’s contribution

• 8 (1) Every employee who is employed by an employer in pensionable employment shall, by deduction as provided in this Act from the remuneration in respect of the pensionable employment paid to the employee by the employer, make an employee’s contribution for the year in which the remuneration is paid to the employee of an amount equal to the product obtained when the contribution rate for employees for the year is multiplied by the lesser of

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

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

• Marginal note:Contributions for 1997

  (1.1) Notwithstanding subsection (1), for 1997 the contribution required by that subsection, in this subsection referred to as the “basic contribution”, shall be calculated as though the contribution rate for employees were 2.925% and every employee who is required to make a contribution under that subsection shall make an additional contribution of an amount equal to 1/39 of the basic contribution.

• Marginal note:Interest on unpaid additional contributions

  (1.2) Where the amount paid by an employee on or before the employee’s balance-due day for a year on account of the additional contribution required to be made under subsection (1.1) is less than the amount of the additional contribution required to be made, interest at a prescribed rate per annum is payable by the employee on the difference between those amounts from the balance-due day for the year to the day of payment.

• Marginal note:Application of certain provisions

  (1.3) Subsection 30(1) and sections 32, 36 and 37 apply in respect of the additional contribution required to be made under subsection (1.1) as though it were a contribution required to be made under this Act in respect of self-employed earnings.

• Marginal note:Amount of overpayment

  (2) Where the aggregate of all amounts deducted as required from the remuneration of an employee for a year whether by one or more employers on account of the employee’s contribution for the year under this Act or under a provincial pension plan exceeds an amount equal to the product obtained when the contribution rate for employees for the year is multiplied by the lesser of

  • (a) the employee’s contributory salary and wages for the year, plus the employee’s contributory self-employed earnings for the year in the case of an individual described in section 10, minus the employee’s basic exemption for the year, and

  • (b) the employee’s maximum contributory earnings for the year,

  that proportion of the amount of the excess that the aggregate of all amounts so deducted on account of the employee’s contribution for the year under this Act is of the aggregate of all amounts so deducted on account of the employee’s contribution for the year under this Act or under a provincial pension plan shall be deemed to be an overpayment made by the employee on account of the employee’s contribution for that year under this Act.