Canada Pension Plan Regulations

5 (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:

(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(4) [Repealed, SOR/2002-245, s. 2]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.