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

Regulations are current to 2019-02-28 and last amended on 2019-02-01. Previous Versions

PART ICollection and Payment of Employees’ and Employers’ Contributions (continued)

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.

  • SOR/85-39, s. 2;
  • SOR/90-829, s. 2;
  • SOR/2019-41, s. 2.
  •  (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  • (4) [Repealed, SOR/2002-245, s. 2]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.
  •  (1) Subject to paragraph (3), for the year 2024 and each subsequent year, the amount of an employee’s second additional contribution to be deducted by their employer from a payment of remuneration paid to the employee in a year shall be determined in accordance with subsection (2) when the result of the following formula exceeds zero:

    (A + B) − C

    where

    A
    is the payment of remuneration that the employer pays to the employee;
    B
    is the total remuneration paid by the employer to that employee for the year up to the date of the payment; and
    C
    is the greater of
    • (a) the total of the remuneration paid by the employer to that employee for the year up to the date of the payment; and

    • (b) the amount of the employee’s maximum pensionable earnings for the year.

  • (2) The amount of the employee’s second additional contribution is determined by 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:

    E × F

    where

    E
    is the result of the calculation as set out under subsection (1); and
    F
    is the second additional contribution rate for employees for the year.
  • (3) The aggregate of an employee’s second additional contributions for a year deducted by the person’s employer from a payment of remuneration in respect of pensionable employment shall not exceed the year’s maximum second additional contribution.

  • SOR/2019-41, s. 4.

Provincial Pension Plan

  •  (1) If an employee has made a base contribution and a first additional contribution for the year under a provincial pension plan in respect of salary and wages paid to the employee by an employer, the amount of the employee’s base contribution and the employee’s first additional contribution determined under section 5, in respect of a payment of remuneration to the employee in that year by that employer, shall not exceed the amount remaining after subtracting from the sum of the year’s maximum base contribution and the year’s maximum first additional contribution the aggregate of that employee’s base contributions and first additional contributions previously required to be deducted in that year by that employer under this Part or under a provincial pension plan.

  • (2) For the purposes of the calculation under subsection (1), the amount of contributions previously required to be deducted by the employer under a provincial pension plan is equal to the amount determined by multiplying the amount of those contributions by the ratio that the sum of the contribution rate for employees and the first additional contribution rate for employees under the Act bears to the sum of the corresponding rates of the provincial pension plan.

  • (3) If an employee has made a second additional contribution for the year under a provincial pension plan in respect of salary and wages paid to the employee by an employer, the amount of the employee’s second additional contribution determined under section 5.1, in respect of a payment of remuneration to the employee in that year by that employer, shall not exceed the amount remaining after subtracting from the year’s maximum second additional contribution the aggregate of that employee’s second additional contributions previously required to be deducted in that year by that employer under this Part or under a provincial pension plan.

  • (4) For the purposes of the calculation under subsection (3), the amount of contributions previously required to be deducted by the employer under a provincial pension plan is equal to the amount determined by multiplying the amount of those contributions by the ratio that the second additional contribution rate for employees under the Act bears to the corresponding rate under the provincial pension plan.

  • SOR/86-1134, s. 3;
  • SOR/90-829, s. 3;
  • SOR/2019-41, s. 5.
 
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