The Québec Pension Plan (QPP) is a compulsory public insurance plan to which you and an employee must contribute if the employee is 18 or older but under 73 at the end of the year. You have to contribute to the plan even if the employee receives a QPP or Canada Pension Plan (CPP) retirement pension. However, an employee 65 or older but under 73 at the end of the year who receives a QPP or CPP retirement pension can elect to stop contributing to the QPP.

The QPP provides employees working in Québec and their families with basic financial protection upon retirement or in the event of disability or death.

QPP contributions are shared equally by you and the employee. You stop withholding the employee's QPP contributions and paying your employer contributions when the employee's pensionable salary or wages reach the additional maximum pensionable earnings under the QPP for the year.

You must remit an employee's QPP contributions and your employer QPP contributions to us at the same time. We remit the employee and employer QPP contributions to Retraite Québec, which records each employee's contributions and pensionable salary or wages in the Record of Contributors.

You must remit QPP contributions to us periodically, according to your remittance frequency, using the payment option that is best for you.

Calculating contributions

To calculate QPP contributions, use one of the following:

• WebRAS – Calculation of Source Deductions and Employer Contributions;
• the Source Deduction Tables for QPP Contributions (TP-1015.TR-V); or
• the Formulas to Calculate Source Deductions and Contributions (TP-1015.F-V).

Enhancement of the QPP

On January 1, 2019, the QPP was enhanced and now consists of:

• the base plan
• the additional plan

Consequently, the employee's contribution is comprised of the base contribution and a first additional contribution. The contributions are calculated on the portion of an employee's pensionable salary or wages that exceeds $3,500 for the year, up to the maximum pensionable earnings under the QPP for the year. The contribution rate is 12.80% per year (shared equally by the employee and the employer).

As of January 1, 2024, you must withhold a second additional contribution. This contribution is calculated on the portion of an employee's pensionable salary or wages that exceeds the maximum pensionable earnings under the QPP for the year, up to the additional maximum pensionable earnings under the QPP for the year. The second additional contribution is withheld at a rate of 8% per year (shared equally by the employee and the employer). The amount of the additional maximum pensionable earnings is 107% of the maximum pensionable earnings for 2024 and will be 114% of the maximum pensionable earnings for 2025 and subsequent years.

For more information about the QPP enhancement, go the the Retraite Québec website.