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Canada Pension Plan

Version of section 8 from 2018-12-15 to 2024-11-26:


Marginal note:Employee’s base contribution

  •  (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 base 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 the amount, if any, that is determined in the prescribed manner to be the employee’s salary and wages paid by the employer on which a base contribution has been made for the year by the employee under a provincial pension plan.

  • Marginal note:Employee’s first additional contribution

    (1.1) For 2019 and each subsequent year, an employee referred to in subsection (1) shall also, 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 first additional contribution for the year in which the remuneration is paid to the employee of an amount equal to the product obtained when the first additional 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 the amount as or on account of the basic exemption for the year that is prescribed, and

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

  • Marginal note:Employee’s second additional contribution

    (1.2) For 2024 and each subsequent year, an employee referred to in subsection (1) shall also, 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 second additional contribution for the year in which the remuneration is paid to the employee of an amount equal to the product obtained when the second additional contribution rate for employees for the year is multiplied by the amount equal to

    • (a) the amount by which the employee’s contributory salary and wages for the year paid by the employer — not exceeding the employee’s additional maximum pensionable earnings for the year — exceeds the employee’s maximum pensionable earnings for the year,

    minus

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

  • (1.3) [Repealed, 2016, c. 14, s. 3]

  • Marginal note:Excess amount

    (2) An excess amount has been paid if 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 contributions for the year under this Act or under a provincial pension plan exceeds the sum obtained by adding the following amounts:

    • (a) the product obtained when the contribution rate for employees for the year under this Act is multiplied by the lesser of

      • (i) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, plus the employee’s contributory self-employed earnings for the year in the case of an individual who is described in section 10 and to whom the provisions of this Act relating to the making of contributions apply, minus the prorated portion of the employee’s basic exemption for the year calculated under subsection (4), and

      • (ii) the prorated portion of the employee’s maximum contributory earnings for the year calculated under subsection (5);

    • (a.1) for 2019 and each subsequent year, the product obtained when the first additional contribution rate for employees for the year under this Act is multiplied by the lesser of

      • (i) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, plus the employee’s contributory self-employed earnings for the year in the case of an individual who is described in section 10 and to whom the provisions of this Act relating to the making of contributions apply, minus the prorated portion of the employee’s basic exemption for the year calculated under subsection (4), and

      • (ii) the prorated portion of the employee’s maximum contributory earnings for the year calculated under subsection (5);

    • (a.2) for 2024 and each subsequent year, the product obtained when the second additional contribution rate for employees for the year under this Act is multiplied by the amount by which

      • (i) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, plus the employee’s contributory self-employed earnings for the year in the case of an individual who is described in section 10 and to whom the provisions of this Act relating to the making of contributions apply — not exceeding the prorated portion of the employee’s additional maximum pensionable earnings for the year calculated under subsection (8),

      exceeds

      • (ii) the prorated portion of the employee’s maximum pensionable earnings for the year calculated under subsection (9);

    • (b) the product obtained when the base contribution rate for employees for the year under a provincial pension plan is multiplied by the lesser of

      • (i) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of a provincial pension plan apply, minus the prorated portion of the employee’s basic exemption for the year calculated under subsection (6), and

      • (ii) the prorated portion of the employee’s maximum contributory earnings for the year calculated under subsection (7);

    • (c) for 2019 and each subsequent year, the product obtained when the first additional contribution rate for employees for the year under a provincial pension plan is multiplied by the lesser of

      • (i) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of the provincial pension plan apply, minus the prorated portion of the employee’s basic exemption for the year calculated under subsection (6), and

      • (ii) the prorated portion of the employee’s maximum contributory earnings for the year calculated under subsection (7); and

    • (d) for 2024 and each subsequent year, the product obtained when the second additional contribution rate for employees for the year under a provincial pension plan is multiplied by the amount by which

      • (i) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of the provincial pension plan apply — not exceeding the prorated portion of the employee’s additional maximum pensionable earnings for the year calculated under subsection (10),

      exceeds

      • (ii) the prorated portion of the employee’s maximum pensionable earnings for the year calculated under subsection (11).

  • Marginal note:Overpayment

    (3) The overpayment made by the employee on account of the employee’s contributions for the year under this Act is the lesser of

    • (a) the aggregate of all amounts deducted as required from the remuneration of that employee on account of the employee’s contributions under this Act for the year, minus the sum of the amounts determined under paragraphs (2)(a) to (a.2), and

    • (b) the excess amount calculated in accordance with subsection (2).

  • Marginal note:Prorated portion of employee’s basic exemption

    (4) For the purposes of subparagraphs (2)(a)(i) and (a.1)(i), the prorated portion of the employee’s basic exemption for the year is the product obtained when the employee’s basic exemption is multiplied by the ratio that

    • (a) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, subject to

      • (i) for each year before 2024, the maximum pensionable earnings in respect of each pensionable employment, and

      • (ii) for 2024 and each subsequent year, the additional maximum pensionable earnings in respect of each pensionable employment,

    bears to

    • (b) the aggregate of the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply or to which the provisions of a provincial pension plan apply, subject to

      • (i) for each year before 2024, the maximum pensionable earnings in respect of each pensionable employment, and

      • (ii) for 2024 and each subsequent year, the additional maximum pensionable earnings in respect of each pensionable employment.

  • Marginal note:Prorated portion of employee’s maximum contributory earnings

    (5) For the purposes of subparagraphs (2)(a)(ii) and (a.1)(ii), the prorated portion of the employee’s maximum contributory earnings for the year is the product obtained when the employee’s maximum contributory earnings is multiplied by the ratio that

    • (a) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, subject to

      • (i) for each year before 2024, the maximum pensionable earnings in respect of each pensionable employment, and

      • (ii) for 2024 and each subsequent year, the additional maximum pensionable earnings in respect of each pensionable employment,

    bears to

    • (b) the aggregate of the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply or to which the provisions of a provincial pension plan apply, subject to

      • (i) for each year before 2024, the maximum pensionable earnings in respect of each pensionable employment, and

      • (ii) for 2024 and each subsequent year, the additional maximum pensionable earnings in respect of each pensionable employment.

  • Marginal note:Prorated portion of employee’s basic exemption

    (6) For the purposes of subparagraphs (2)(b)(i) and (c)(i), the prorated portion of the employee’s basic exemption for the year is the difference between the employee’s basic exemption, determined without taking into account paragraphs 19(b) and (c), and the prorated portion calculated under subsection (4).

  • Marginal note:Prorated portion of employee’s maximum contributory earnings

    (7) For the purposes of subparagraphs (2)(b)(ii) and (c)(ii), the prorated portion of the employee’s maximum contributory earnings for the year is the difference between the employee’s maximum contributory earnings, determined without taking into account paragraphs 17(b) and (c) and 19(b) and (c), and the prorated portion calculated under subsection (5).

  • Marginal note:Prorated portions of employee’s additional maximum pensionable earnings

    (8) For the purposes of subparagraph (2)(a.2)(i), the prorated portion of the employee’s additional maximum pensionable earnings for the year is the product obtained when the employee’s additional maximum pensionable earnings is multiplied by the ratio that

    • (a) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, subject to the additional maximum pensionable earnings in respect of each pensionable employment,

    bears to

    • (b) the aggregate of the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply or to which the provisions of a provincial pension plan apply, subject to the additional maximum pensionable earnings in respect of each pensionable employment.

  • Marginal note:Prorated portion of employee’s maximum pensionable earnings

    (9) For the purposes of subparagraph (2)(a.2)(ii), the prorated portion of the employee’s maximum pensionable earnings for the year is the product obtained when the employee’s maximum pensionable earnings for the year is multiplied by the ratio that

    • (a) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, subject to the additional maximum pensionable earnings in respect of each pensionable employment,

    bears to

    • (b) the aggregate of the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply or to which the provisions of a provincial pension plan apply, subject to the additional maximum pensionable earnings in respect of each pensionable employment.

  • Marginal note:Prorated portion of employee’s additional maximum pensionable earnings

    (10) For the purposes of subparagraph (2)(d)(i), the prorated portion of the employee’s additional maximum pensionable earnings for the year is the difference between the employee’s additional maximum pensionable earnings, determined without taking into account paragraphs 17.1(b) and (c), and the prorated portion calculated under subsection (8).

  • Marginal note:Prorated portion of employee’s maximum pensionable earnings

    (11) For the purposes of subparagraph (2)(d)(ii), the prorated portion of the employee’s maximum pensionable earnings for the year is the difference between the employee’s maximum pensionable earnings, determined without taking into account paragraphs 17(b) and (c), and the prorated portion calculated under subsection (9).

  • R.S., 1985, c. C-8, s. 8
  • R.S., 1985, c. 30 (2nd Supp.), s. 3
  • 1997, c. 40, s. 58
  • 2011, c. 24, s. 173
  • 2013, c. 33, s. 155
  • 2016, c. 14, s. 3
  • 2018, c. 12, s. 362

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