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Canada Pension Plan Regulations

Version of section 5 from 2006-03-22 to 2018-12-31:

  •  (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 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, where that result is equidistant from two such multiples, to the higher thereof:

    (A - B) x C

    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; and
    C
    is the contribution rate for employees for the year.
  • (3) Subject to subsections (7) and (8), the amount of an employee’s 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 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  • (4) [Repealed, SOR/2002-245, s. 2]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) Where there are 27 bi-weekly or 53 weekly pay periods ending in a year, there shall be added to the employee’s contribution 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 contribution rate for employees for the year and the product obtained thereby is rounded to the nearest multiple of $0.01, or where that product is equidistant from two such multiples, to the higher thereof.

  • (7) Where 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 contribution in respect of that payment shall be at least $0.01.

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