The Quebec Pension Plan (QPP) stands as a vital pillar of financial security for Quebec’s workforce, providing a mandatory public insurance program for those over 18 earning more than CAD 3,500 annually. Unlike CPP, Quebec employees have QPP contributions withheld.
Starting January 1, 2024, enhancements to the QPP aim to bolster the financial stability of pensioners. The retirement income replacement rate will increase from 25% to 33.33%. Stay tuned to this page for the latest update on the QPP Increase in 2024 and find out how much the Quebec Pension Plan will rise.
Understanding the Quebec Pension Plan (QPP)
Introduced in 1966, the Quebec Pension Plan (QPP) functions similarly to the Canada Pension Plan (CPP). It is a compulsory public insurance program for Quebec workers, offering benefits such as survivors’ benefits, disability payments, and retirement pensions. Both employers and employees contribute to the QPP through payroll payments.
Individuals who have worked or currently work in Quebec, along with their families, receive essential financial support for retirement, death, or disability through the Quebec Pension Plan. Anyone aged 18 and above, earning an annual employment income exceeding CAD 3,500, is obligated to contribute to the plan.
Details of Quebec Pension Plan (QPP) for 2024
| Plan Name | Quebec Pension Plan (QPP) |
| Province | Quebec |
| Country | Canada |
| Category | Government Aid |
| Official Website | www.rrq.gouv.qc.ca |
2024 QPP Raise
As of January 1, 2019, the QPP underwent improvements, introducing two plans: the base plan and an additional plan. The employee’s QPP contribution now comprises the basic contribution and an extra contribution. The phased implementation of the additional plan’s contribution unfolds as follows:
For the years 2019 to 2023, the employee’s QPP contribution includes the basic contribution and the initial supplementary contribution. Calculations are based on the portion of an employee’s pensionable pay or compensation exceeding CAD 3,500, up to the annual maximum pensionable earnings (AMPE) under the QPP.
Starting in 2024, the employee’s QPP contribution will consist of the base contribution, a first extra contribution, and a second additional contribution. The calculation for the second additional contribution involves the portion of an employee’s pensionable salary or wages exceeding their AMPE under the QPP, up to the extra AMPE under the QPP. A deduction of an additional two percent will be made at the rate of 8%. The extra maximum pensionable earnings (MPE) will be 107% of the 2024 AMPE and 114% for the maximum pensionable earnings in 2025 and subsequent years.
QPP 2024 Proposed Adjustments
The QPP payment eligibility age will increase from 70 to 72, aiding workers in enhancing their financial stability. Those opting to delay pension commencement can enjoy an increased QPP pension. Like the Canada Pension Plan (CPP), workers receiving QPP benefits while still employed can opt out of QPP payments from age 65. Continuing contributions allows the accrual of pension credits, with the employer also mandated to make QPP contributions. Similar to the CPP, reduced working hours beyond age 65 will no longer affect the average earnings used for calculating the QPP pension.
Calculating Quebec Pension Plan (QPP)
The QPP pension is determined by averaging contributions made to the plan from the age of 18 until the year of pension application, regardless of whether the applicant worked during that period. The amount received depends on the age at which the QPP pension begins. Additionally, the QPP varies based on the duration of the contributor’s participation in the plan and their earnings during that period of employment.
QPP Contribution 2024
The QPP provides pension income coverage for retirees and disabled personnel. In case of an employee’s death, the QPP disburses payments to the spouse or dependents. QPP contributions are divided equally between you and the employee. If an employee’s earnings surpass the maximum pensionable salary or wages under the QPP for the year, you no longer withhold the employee’s QPP contribution and cease making your own payment.
Understanding How Quebec Pension Plan (QPP) Operates
The Quebec Pension Plan (QPP) is a compulsory public insurance program. In Quebec, individuals aged 18 and above, earning an annual employment income exceeding CAD 3,500, are eligible to enroll. Both employers and employees contribute equally to the QPP.