Canada Pension Plan — C-8 13
n do not include earnings for (a) any period described in paragraph 12(1)(a), (b), (c) or (d); or (b) any year that (i) follows a year for which the person makes an election to exclude self-employed earnings, and (ii) is not a year for which they revoke the election. Election to include certain earnings — base contribution (3) Despite subsection (1), the amount of the contributory self-employed earnings of a person for a year for the purposes of subsection 10(1) shall, if the person or their representative makes an election in the prescribed form and manner within one year from June 15 in the following year — or, in the case of an employee to whom the Minister refunds an amount under section 38, from the day on which the Minister refunds the amount — include any amount by which (a) the lesser of (i) his contributory salary and wages for the year, and (ii) his maximum pensionable earnings for the year, exceeds (b) the aggregate of (i) the person’s salary and wages on which a base contribution has been made for the year and the amount, if any, that is determined in the prescribed manner to be the person’s salary and wages on which a base contribution has been made for the year by the person under a provincial pension plan, and (ii) the lesser of (A) the aggregate of all amounts deducted as prescribed on account of his basic exemption for the year by one or more employers pursuant to section 8 and all amounts deducted as prescribed by or under a provincial pension plan on account of any like exemption for the year by one or more employers pursuant to such a plan, and (B) his basic exemption for the year. Earnings — first additional contribution (3.1) For 2019 and each subsequent year, if a person or their representative makes an election under subsection (3), the amount of the contributory self-employed earnings of the person for a year for the purposes of subsection 10(1.1) shall include any amount by which (a) the lesser of (i) the person’s contributory salary and wages for the year, and (ii) the person’s maximum pensionable earnings for the year, exceeds (b) the aggregate of (i) the person’s salary and wages on which a first additional contribution has been made for the year and the amount, if any, that is determined in the prescribed manner to be the person’s salary and wages on which a first additional contribution has been made for the year by the person under a provincial pension plan, and (ii) the lesser of (A) the aggregate of all amounts deducted as prescribed on account of the person’s basic exemption for the year by one or more employers under section 8 and all amounts deducted as prescribed by or under a provincial pension plan on account of any like exemption for the year by one or more employers under that plan, and (B) the person’s basic exemption for the year. Earnings — second additional contribution (3.2) For 2024 and each subsequent year, if a person or their representative makes an election under subsection (3), the amount of the contributory self-employed earnings of the person for a year for the purposes of subsection 10(1.2) shall include any amount by which (a) the lesser of (i) the person’s contributory salary and wages for the year, and (ii) the person’s additional maximum pensionable earnings for the year, exceeds (b) the aggregate of (i) the person’s salary and wages on which a first additional contribution has been made for the year and the person’s salary and wages on which a second additional contribution has been made for the year, (i.1) the amount, if any, that is determined in the prescribed manner to be the person’s salary and wages on which a first additional contribution has been made for the year by the person under a provincial pension plan and the person’s salary and wages on which a second additional contribution has been made for the year by the person under a provincial pension plan, (ii) the lesser of (A) the aggregate of all amounts deducted as prescribed on account of the person’s ba