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Canada Pension Plan Regulations (C.R.C., c. 385)

Regulations are current to 2022-06-20 and last amended on 2021-06-23. Previous Versions

Canada Pension Plan Regulations

C.R.C., c. 385

CANADA PENSION PLAN

Regulations Respecting the Administration of the Canada Pension Plan

Short Title

 These Regulations may be cited as the Canada Pension Plan Regulations.

Interpretation

  •  (1) In these Regulations,

    Act

    Act means the Canada Pension Plan; (Loi)

    Chairman

    Chairman[Repealed, SOR/2013-61, s. 1]

    Commissioner

    Commissioner[Repealed, SOR/2013-61, s. 1]

    Minister

    Minister means

    • (a) in Parts I, II, III and IV, the Minister of National Revenue, and

    • (b) in Part V, the Minister as defined in subsection 42(1) of the Act. (ministre)

    Vice-Chairman

    Vice-Chairman[Repealed, SOR/2013-61, s. 1]

  • (2) For the purposes of the Act and these Regulations,

    agriculture

    agriculture means the operations of farming when carried on on a farm for the benefit of an individual or other person who is a farmer and, without limiting the generality of the foregoing, includes the operation of

    • (a) the clearing of land for the purposes of farming,

    • (b) the cultivation of the soil,

    • (c) the conservation of the soil, including the construction, maintenance and operations of tile drainage systems, ditches, canals, reservoirs or waterways exclusively for the purposes of farming,

    • (d) the producing, harvesting, storing or grading of any natural product of farming,

    • (e) the preparation of land for or the harvesting of wild berries,

    • (f) the raising of bees and producing of honey,

    • (g) the breeding or raising of horses, beasts of burden, cattle, sheep, goats, swine, furbearing animals, birds of any kind or the production of eggs,

    • (h) dairy farming and the processing of milk, butter or cheese on the farm where it is produced,

    • (i) producing maple sap, maple syrup or maple sugar,

    when carried on on a farm for the benefit of an individual or other person who is a farmer, and includes

    • (j) the offering for sale or selling, off the farm for the benefit of such farmer, of any of the products of the operations previously described in this definition where such offering for sale or selling is incidental to those operations, and

    • (k) the exhibiting, advertising, assembling, freezing, storing, grading, processing, packing and transporting, off the farm for the benefit of such farmer, of the products described in paragraph (j) where the exhibiting, advertising, assembling, freezing, storing, grading, processing, packing or transporting is incidental to the offering for sale or selling described in that paragraph; (agriculture)

    agricultural enterprise

    agricultural enterprise means the business of agriculture carried on for the benefit of an individual or other person who is a farmer; (entreprise agricole)

    fishing

    fishing means fishing for or catching any fish, including shellfish, crustaceans or molluscs, or any aquatic animal or plant by any method whatever; (pêche)

    forestry

    forestry means the planting, breeding, propagation, production, protection, measuring or harvesting of trees when carried on in a forest, on a woodlot or on a tree farm, and includes all services incidental to any of those activities if such services are performed where the activities are carried on; (sylviculture)

    horticulture

    horticulture means

    • (a) the operations relating to the breeding, producing, raising or harvesting of

      • (i) vegetables, flowers, shrubs or ornamental grasses, and

      • (ii) seeds, seedlings, grafts and cuttings of vegetables, flowers, shrubs or ornamental grasses, and

    • (b) the operations relating to landscape gardening where the landscape gardening is incidental to the carrying on of

      • (i) any of the operations described in paragraph (a), or

      • (ii) agriculture,

    and includes all services incidental to the carrying on of any of the operations described in paragraph (a) or (b) if such services are performed where the operations are carried on; (horticulture)

    hunting

    hunting means hunting for or catching or killing any wild animal by any method whatever, but does not include any operation involved in carrying on the business of rodent extermination; (chasse)

    international organization

    international organization means

    • (a) any specialized agency of which Canada is a member that is brought into relationship with the United Nations in accordance with Article 63 of the Charter of the United Nations, and

    • (b) any international organization of which Canada is a member, the primary purpose of which is the maintenance of international peace or the economic or social well-being of a community of nations; (organisation internationale)

    logging

    logging means the converting of trees into timber when carried on in a forest, on a woodlot or on a tree farm; (exploitation forestière)

    lumbering

    lumbering means the milling of timber into lumber or boards when carried on in a forest, on a woodlot or on a tree farm, and includes the preparation of timber for milling in such place; (débit des bois)

    trapping

    trapping means the operations involved in using any trap, snare or other device for taking or destroying any wild animal, but does not include any operation involved in carrying on the business of rodent extermination. (piégeage)

  • (3) For the purposes of the definitions logging and lumbering in subsection (2), timber means logs of any size, lathwood, pulpwood, fuelwood, tiewood, veneerwood, posts, bolts, piles, pit props, spars, stakes, bark, chips or any crude wood before it has been milled or otherwise manufactured.

  • SOR/92-17, s. 1
  • SOR/96-522, s. 1
  • SOR/2013-61, s. 1
  • SOR/2013-208, s. 1

PART ICollection and Payment of Employees’ and Employers’ Contributions

Interpretation

 The definitions in this section apply in this Part,

employed on a non-continuous basis

employed on a non-continuous basis[Repealed, SOR/85-39, s. 1]

employee’s contribution

employee’s contribution means any amount determined in accordance with sections 5, 5.1 and 6; (cotisation de l’employé)

employer’s contribution

employer’s contribution means an amount determined in accordance with section 7; (cotisation de l’employeur)

ordinary remuneration

ordinary remuneration means the remuneration paid to an employee on a pay day in respect of employment in the relevant pay period and includes fees paid to a director of a corporation if no other remuneration is payable to the director by the corporation; (rémunération ordinaire)

pay day

pay day means the day on which remuneration ordinarily is paid to an employee; (jour de paie)

pay period

pay period means

  • (a) the usual period for which an employee is paid on a pay day, or

  • (b) where there is no usual period, the period for which the employee is actually paid on a pay day,

and for the purposes of paragraphs (a) and (b) includes a period of an hour or a day; (période de paie)

remuneration

remuneration has the same meaning as the expression “contributory salary and wages” as used in section 12 of the Act; (rémunération)

year’s maximum base contribution

year’s maximum base contribution means an amount calculated by multiplying a person’s contribution rate for the year by the difference between the amount of the person’s maximum pensionable earnings and the amount of the person’s basic exemption; (cotisation de base maximale pour l’année)

year’s maximum contribution

year’s maximum contribution[Repealed, SOR/2019-41, s. 1]

year’s maximum first additional contribution

year’s maximum first additional contribution means an amount calculated by multiplying a person’s first additional contribution rate for the year by the difference between the amount of the person’s maximum pensionable earnings and the amount of the person’s basic exemption; (première cotisation supplémentaire maximale pour l’année)

year’s maximum second additional contribution

year’s maximum second additional contribution means an amount calculated by multiplying a person’s second additional contribution rate for the year by the difference between the amount of the person’s additional maximum pensionable earnings and the amount of the person’s maximum pensionable earnings. (deuxième cotisation supplémentaire maximale pour l’année)

  • SOR/78-142, s. 1
  • SOR/78-935, s. 1
  • SOR/80-133, s. 1
  • SOR/81-99, s. 1
  • SOR/82-290, s. 1
  • SOR/83-270, s. 1
  • SOR/84-115, s. 1
  • SOR/85-39, s. 1
  • SOR/85-1164, s. 1
  • SOR/86-1134, s. 1
  • SOR/87-721, s. 1
  • SOR/88-639, s. 1
  • SOR/89-580, s. 1
  • SOR/90-829, s. 1
  • SOR/90-832, s. 1
  • SOR/92-36, s. 1
  • SOR/92-736, s. 1
  • SOR/94-173, s. 1
  • SOR/95-156, s. 1
  • SOR/96-262, s. 1
  • SOR/97-384, s. 1
  • SOR/98-258, s. 1
  • SOR/99-60, s. 1
  • SOR/2000-61, s. 1
  • SOR/2001-135, s. 1
  • SOR/2002-245, s. 1
  • SOR/2019-41, s. 1

Computation of Employee’s Contribution

 For the purposes of subsection 21(1) of the Act, the rules set out in sections 5 and 5.1 are prescribed for the purposes of determining an employee’s contribution to be deducted by the employee’s employer from any payment of remuneration in a year.

  •  (1) For the purposes of this section, a qualifying payment of remuneration is that portion of a payment of remuneration that is ordinary remuneration from pensionable employment.

  • (2) Subject to subsections (6) to (8), the amount of an employee’s base contribution and an employee’s first additional contribution to be deducted by their employer from any qualifying payment of remuneration in a pay period in a year shall be determined using the following formula and rounding the result to the nearest multiple of $0.01 or, if that result is equidistant from two such multiples, to the higher of them:

    (A − B) × (C + D)

    where

    A
    is the qualifying payment of remuneration for the pay period;
    B
    is the employee’s basic exemption in respect of the pay period;
    C
    is the contribution rate for employees for the year; and
    D
    is the first additional contribution rate for employees for the year.
  • (3) Subject to subsections (7) and (8), the amount of an employee’s base contribution and an employee’s first additional contribution in respect of that portion of a payment of remuneration from pensionable employment that is not a qualifying payment of remuneration is the product of that portion multiplied by the sum of the contribution rate for employees and the first additional contribution rate for employees for the year, rounded in the manner set out in subsection (2).

  • (4) [Repealed, SOR/2002-245, s. 2]

  • (5) For the purposes of subsection (2), the amount of an employee’s basic exemption for each pay period in a year is

    • (a) in the case of an employee who is ordinarily paid

      • (i) hourly, $1.75,

      • (ii) daily, $14.58,

      • (iii) weekly, $67.30,

      • (iv) bi-weekly, $134.61,

      • (v) quadri-weekly, $269.23,

      • (vi) semi-monthly, $145.83,

      • (vii) monthly, $291.66,

      • (viii) quarterly, $875,

      • (ix) semi-annually, $1,750, or

      • (x) annually, $3,500;

    • (b) in the case of an employee who is ordinarily paid only in respect of a period of 10 months in the year and is paid

      • (i) in 22 payments, $159.09,

      • (ii) semi-monthly, $175, or

      • (iii) monthly, $350; and

    • (c) in any other case, the amount that is the greater of

      • (i) the product obtained when $3,500 is multiplied by the fraction that the number of days in the period is of 365, and

      • (ii) $67.30.

  • (6) If there are 27 bi-weekly or 53 weekly pay periods ending in a year, there shall be added to the employee’s contributions otherwise determined under subsection (2) for each pay period an amount equal to the amount determined when

    • (a) the employee’s basic exemption for the year is divided by 27 or 53, as the case may be, without taking into consideration amounts less than $0.01;

    • (b) the amount determined under paragraph (a) is subtracted from the amount of the applicable basic exemption determined under subsection (5); and

    • (c) the amount determined under paragraph (b) is multiplied by the sum of the contribution rate for employees and the first additional contribution rate for employees for the year, and the product obtained is rounded to the nearest multiple of $0.01, or if that product is equidistant from two such multiples, to the higher of them.

  • (7) If a payment of remuneration in respect of an employee’s pensionable employment for a pay period in a year exceeds the amount of the employee’s basic exemption for the pay period, the amount of the employee’s contributions in respect of that payment shall be at least $0.01.

  • (8) The aggregate of an employee’s base contributions and an employee’s first additional contributions for a year deducted by an employer in respect of pensionable employment with the employer shall not exceed the sum of the year’s maximum base contribution and the year’s maximum first additional contribution.

  • SOR/78-142, s. 2
  • SOR/78-935, s. 2
  • SOR/80-133, s. 2
  • SOR/81-99, s. 2
  • SOR/82-290, s. 2
  • SOR/83-270, s. 2
  • SOR/84-115, s. 2
  • SOR/85-39, s. 2
  • SOR/85-1164, s. 2
  • SOR/86-1134, s. 2
  • SOR/87-721, s. 2
  • SOR/88-639, s. 2
  • SOR/89-580, s. 2
  • SOR/90-832, s. 2
  • SOR/92-36, s. 2
  • SOR/92-736, s. 2
  • SOR/94-173, s. 2
  • SOR/96-262, s. 2
  • SOR/2002-245, s. 2
  • SOR/2004-223, s. 1(F)
  • SOR/2019-41, s. 3
 
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