How are contributions calculated?
One year of contributions to the Québec Pension Plan is entered under a worker's name for each year in which he or she contributed on earnings greater than the basic exemption.
See the table Pensionable Earnings and Contributions.
Employment earnings and contribution rates
In 2013, the maximum earnings on which contributions can be made is 51 100 $; this is called the maximum pensionable earnings (MPE).
- In 2013, the contribution rate is 10,20% of the portion of employment earnings between the basic exemption and the maximum pensionable earnings. An employee pays half (5,10%) and his or her employer pays the other half.
- A self-employed worker must send his or her annual contribution directly to Revenu Québec. In 2013, the contribution rate is 10,20%.
Examples of annual contributions in 2013
Employment
income for 2013
$
|
Employee's contribution
deducted at source
$ |
Self-employed worker's contributions
$ |
| 5 000 |
76,50 |
153,00 |
| 10 000 |
331,50 |
663,00 |
| 15 000 |
586,50 |
1 173,00 |
| 20 000 |
841,50 |
1 683,00 |
| 25 000 |
1 096,50 |
2 193,00 |
| 30 000 |
1 351,50 |
2 703,00 |
| 35 000 |
1 606,50 |
3 213,00 |
| 40 000 |
1 861,50 |
3 723,00 |
| 45 000 |
2 116,50 |
4 233,00 |
| 50 000 |
2 371,50 |
4 743,00 |
| 51 100 and over |
2 427,60 |
4 855,20 |
Important...
The contribution rate will increase by 0,15% a year until it reaches 10,80% in 2017. As of 2018, an automatic mechanism will be implemented to align the contribution rate with the steady-state rate.
The Statement of Participation: an important tool...
Every 4 years, the Régie mails contributors a Statement of Participation in the Québec Pension Plan. It is also possible to consult it online. Contributors must make sure that the amounts shown are correct. If they are not, the Régie must be notified.
The Statement of Participation contains the details of a person's participation in the Québec Pension Plan:
Pensionable earnings
- Amounts on which a worker has made contributions to Plan for each year in which employment earnings were sufficient
- All contributions recorded under the worker's name
Benefits that could be paid to the contributor or the contributor's family following disability, retirement or death
- Estimated amounts of various benefits: disability benefits, retirement pension and survivors' benefits