Canada Pension Plan Formula

Canada Pension Plan (CPP) is a contributory, earnings-related social insurance program offered by the Government of Canada. The CPP program mandates all employed Canadians who are 18 years of age and over to contribute a prescribed portion of their earnings to a federally administered pension plan. It is administered by Human Resources and Social Development of Canada. Given here is the Canada Pension Plan formula for the calculation of pension based on the savings and the period.

CPP Formula


E = (G - 3500) × (R / 100)
S = (G - 3500) × (C / 100)


E = Contribution Amount for Employee, Employer
S = Contribution Amount for Self-Employed
G = Gross Revenue 2017
R = Contribution Rate Employee, Employer
C = Contribution Rate Self-Employed

Related Calculator:

You can use this CPP formula for calculation of disability pensions to eligible workers who become disabled in a severe and prolonged fashion, and survivor benefits to survivors of workers who die before they begin receiving retirement benefits. You can also try the related calculator which is designed based on Canadian retirement income formula to check the results.

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