Robert worked on a farm for 26 days and earned $300. This employment would be pensionable from the first day he starts working.

Robert worked on a farm for 26 days and earned $300. This employment would be pensionable from the first day he starts working.

• A. Pensionable only after 30 days
• B. Pensionable after 25 days
• C. Pensionable from the first day he starts working
• D. Pensionable only after 60 days

Answer: (C)

In Canada, pensionable earnings for the Canada Pension Plan begin on the first day you work in CPP-covered employment. There is no waiting period like 30, 25, or 60 days. So Robert’s 26 days of farm work earning $300 would be pensionable from day one. In practice, CPP has a basic annual exemption (the first $3,500 of earnings in a year isn’t subject to CPP contributions). That means—even though the job is pensionable from day one—the actual CPP contributions on that $300 would be nil for the year. If total earnings later in the year exceed the exemption, contributions would apply to the amount above $3,500, up to the annual maximum.

In Canada, pensionable earnings for the Canada Pension Plan begin on the first day you work in CPP-covered employment. There is no waiting period like 30, 25, or 60 days. So Robert’s 26 days of farm work earning $300 would be pensionable from day one.

In practice, CPP has a basic annual exemption (the first $3,500 of earnings in a year isn’t subject to CPP contributions). That means—even though the job is pensionable from day one—the actual CPP contributions on that $300 would be nil for the year. If total earnings later in the year exceed the exemption, contributions would apply to the amount above $3,500, up to the annual maximum.