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Canada – Quebec

Payroll and Benefits Guide

Last updated:
Dec 8, 2022

Table of contents

Overview COVID-19 Contributions Minimum Wage Payroll Working Hours Leave Termination Common Benefits VISA VAT

Overview

Capital
Quebec City (State Capital)
Currency
Canadian Dollar (CAD)
Date Format
dd/mm/yyyy
Fiscal Year
1 April - 31 March
Payroll Frequency
Bi-Monthly/Monthly/Hourly
Employer Taxes
Up to 13.57%
The government announced that those returning from non-essential travel (i.e holiday travel) to Canada will no longer be eligible for the 500 CAD a week sickness benefit under the Canada Recovery Sickness Benefit (CRSB) intended to assist in covering for the need to quarantine upon arrival to Canada.

Contributions

Employer

Employer Payroll Contributions

1.25-4.26% Health Services Fund (HSF)
1.68% Employment Insurance
0.692% Quebec Parental Insurance Plan (QPIP) (Maximum employer premium 608.96 CAD)
6.15% Quebec Pension Plan (QPP) (Maximum employer premium 3,776.10 CAD)
0.06% Labour Standards
1.00% Workforce Skills and Development (WSDRF, if payroll is greater than 2 million CAD, Varies based on employee classification Commission des normes, de l’équité, de la santé et de la sécurité du travail (CNESST)
Up to 13.57% Total Employment Cost

Employee

Employee Payroll Contributions

1.20% Employment Insurance (maximum employer premium 723.60 CAD) 0.494% Quebec Parental Insurance Plan (QPIP)
0.494% Quebec Parental Insurance Plan (QPIP) (Maximum employee premium 434.72 CAD)
6.15% Pension Plan (Maximum employee premium 3,776.10 CAD)
7.574% Total Employee Cost

Employee Income Tax

Federal:  
15.00% up to 50,197.00 CAD
20.50% 50,197.01 CAD to 100,392.00 CAD
26.00% 100,392.01 CAD to 155,625.00 CAD
29.00% 155,625.01 CAD to 221,708.00 CAD
33.00% 221,708.00 CAD and over
Quebec:  
15.00% Up to 46,295 CAD
20.00% 46,295 CAD – 92,580 CAD
24.00% 92.580.01 CAD – 112,655 CAD
25.75% 112,655.01 CAD +

Minimum Wage

General

The standard minimum wage in Quebec is 14.25 CAD per hour.

For tipped workers, the minimum wage is 11.40 CAD per hour. The minimum wage rate set for employees of federally regulated organizations will be the current minimum wage rate specified in the jurisdiction in which the employee performs the work.

 

Payroll

Payroll Cycle

In Quebec, pay cycles occur monthly, semi-monthly, bi-weekly, and hourly. For monthly paid employees they must receive their pay within ten consecutive days from the end of the pay period.

13th Salary

There is no legislation for 13th- month payments in Quebec, Canada.

 

Working Hours

General

Per the Employment Standards Labour Code, § 16, the maximum number of working hours shall not exceed 8 hours a day, 44 hours a week, with a maximum (inclusive of overtime) of 12-hours in a day. However, in Quebec this can differ per industry, for example:

  • Clothing industry- 39 hours maximum per week
  • Forestry or sawmill- 47 hours maximum per week
  • Remote area or James Bay Territory- 55 hours maximum per week
  • Security + provides surveillance- 44 hours maximum per week
  • Security + doesn’t provide surveillance- 60 hours maximum per week

Overtime

An employer must pay an employee overtime pay at a rate that is at least 150.00% of the employee’s regular rate of pay or one hour of time off in lieu.

Working Week

Monday-Friday

 

Leave

Paid Time Off

In Quebec, employees are entitled to two consecutive weeks of vacation leave after the first year of employment and three consecutive weeks of leave after five years of employment.

Employees are entitled to vacation pay of 4.00% of the regular salary rate of pay for the first five years of employment and 6.00% of the regular salary rate of pay after five years of employment.

Public Holidays

There are 8 national holidays in Quebec. If a holiday falls on a weekend, the holiday is observed on the Friday before the weekend or on the following Monday.

Sick Days

Eligible employees who have worked for the same employee for at least three consecutive months are entitled to up to 26 weeks of leave per year due to sickness, accident, organ or tissue donation, domestic violence, etc.

Maternity Leave

Employees are entitled to up to 18 weeks of unpaid leave. The maternity leave may not begin before the 16th week preceding the expected delivery date and shall end not later than 18 weeks after. If the delivery occurs after the expected date, the employee is entitled to at least two additional weeks of maternity leave.

Special maternity leave may begin four weeks before the expected delivery date when there is a risk of termination of her pregnancy or a danger for the health of the mother or unborn child caused by the pregnancy. A 3 weeks’ notice is required, and a medical certificate.

Paternity Leave

Employees are entitled to up to 5 consecutive weeks of unpaid leave, provided the employers’ permission has been granted and a minimum of three weeks’ notice has been provided. This paternity leave may begin no earlier than the week of the child’s birth and end before the child is one year old. Paternity leave may be added to parental leave.

Parental Leave

Parents are entitled to up to 52 weeks of unpaid leave to care for a new born or adopted child. The parental leave cannot begin before the week of birth or when the child is legally adopted.

The leave should end within 70 weeks after the birth /adoption.

Other Leave

Employees are entitled to 5 days of mandatory leave for the bereavement of a family member, approximately 27 weeks of leave for Compassionate care leave, up to 10 days per year for personal emergency leave, and up to 8 weeks in 26 weeks for Family medical leave.

Employees are also entitled to up to 104 weeks in the event of the death of an employee’s child or in the case that the child has disappeared.

In Quebec, all employers must provide their full-time, regularly employed employees, job-protected, unpaid leave for their duty as jurors or as a witness in a case, responding to a subpoena: or acting as a plaintiff or defendant in the courts. Employees must provide a copy of the jury summons to the employer as evidence of the requirement.

Reservist Leave regulations require employers to provide up to 20 days of unpaid leave each calendar year for annual training for Reservists once they have completed at least 26 consecutive weeks of service with the same employer. An employee may take reservist leave for the following reasons:

  • deployment to a Canadian forces’ operation outside Canada
  • deployment to a Canadian forces operation inside Canada that is assisting with an emergency or the aftermath of an emergency
  • annual training, included related travel time, for up to 20 days in a calendar year
  • other operations set out as such in the Employment Standards Regulation by the Minister
 

Termination

Termination Process

The termination process is standard in Quebec, Canada. It is based on termination reasons within the General Labour Law, unless an employer can provide sufficient cause for dismissal without notice (due to misconduct, etc.)

Notice Period

In general, notice periods in Quebec are stipulated within the employment contract/collective agreement and is linked to the reason for termination and the employee’s length of service, as below:

  • Seven days’ notice is required if the employee is within 3 months to  1 year of employment
  • 14 days’ notice is required if the employee is within 1 year to 5 years of employment
  • Four weeks’ notice is required if the employee is within their fifth year of service, up to the tenth year of service
  • Eight weeks’ notice is required if the employee has completed more than ten years’ service.

Severance Pay

In Quebec, Canada, there is no statutory severance pay due.

Probation Period

Probation periods in Quebec for permanent employees are generally a minimum of 3 months.

 

Common Benefits

General

Cell Phone, internet allowance, and car allowance.

Supplementary health care/dental plan – typically covers costs of items or care that is not covered by Canada’s universal healthcare system such as prescription drugs or vision ware.

Private pension contribution of the employer (2-6 % of base salary).

 

VISA

VISA

The Government of Canada operates the Temporary Foreign Worker Program to enable foreign citizens to apply to work in Canada for a set period.  The program covers all job roles and knowledge levels, and it can be used when a qualified Canadian citizen or permanent resident is not available or suitable for the role.

Federal (Government of Canada) immigration programs and provincial programs (Government of Quebec) are available in Quebec.

 

VAT

General

The standard rate of VAT in Quebec, Canada, is 5.00%. However, Quebec also has a provincial sales tax (PST) which is a retail sales tax that applies when taxable goods or services are purchased, acquired, or brought into Quebec for use in Quebec, and this rate is 9.98%, resulting in a combined GST and QST rate of 14.98%

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