Payroll and Benefits Guide - Canada - Quebec

Canada - Quebec
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Currency

Canadian Dollar (CAD)
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Capital

Quebec City (State Capital)

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Employer Taxes

Up to 13.57%
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Date Format

yyyy/mm/dd
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Fiscal Year

1 April – 31 March

Fun Facts

Quebec is the largest province in Canada by land area and the second-most populous province, after Ontario.

French is the official language of Quebec, making it the only province in Canada with French as the primary language.

Quebec City, the capital of Quebec, is one of the oldest cities in North America. It was founded in 1608 by Samuel de Champlain.

Quebec is famous for its extensive network of bicycle paths.

Quebec is home to the world’s largest winter carnival.

Quebec is known for its love of hockey.

Canada-Quebec

Contributions

Employee Payroll Tax

Employment Insurance (maximum employee premium 1,002.45 CAD)1.63%
Quebec Parental Insurance Plan (QPIP) (Maximum employee premium 449.54 CAD)0.494%
Pension Plan (Maximum employee premium 4,038.40 CAD)6.40%

Employer Payroll Tax

Housing2.00%
Health Services Fund (HSF)1.25-4.26%
Employment Insurance (employer maximum 1,403.43 CAD)2.282%
Quebec Parental Insurance Plan (QPIP) (Maximum employer premium 629.72 CAD)0.692%
Quebec Pension Plan (QPP) (Maximum employer premium 4,038 CAD)6.40%
Labor Standards0.33%
Workforce Skills and Development (WSDRF)1.00%
If payroll is greater than 2 million CAD,1.90%

Payroll

Payroll Cycle

The first payment due to an employee must be made within one month. Wages must therefore be paid on a regular basis at intervals of no longer than 16 days, or one month in the case of supervisory staff. The salaries must be paid on the working day before pay day if it falls on a legal holiday.

13th Salary

In Quebec, Canada, there is no law governing 13th-month payments.

Work Hours and Week

According to Employment Standards Labour Code Section 16, the maximum amount of working hours is 8 hours per day, 44 hours per week, with a maximum (including overtime) of 12 hours per day. However, depending on the industry, this can vary in Quebec.

  • Industry of clothing: 39 hours per week at most
  • Forestry or a sawmill: a maximum of 47 hours per week
  • Remote location or James Bay Territory: limit of 55 hours per week
  • A maximum of 44 hours per week of surveillance are provided by Security +.
  • Security + does not offer surveillance; the weekly maximum is 60 hours.

Overtime

An employee must receive overtime pay that is at least 150.00% of their regular rate of pay, or one hour of unpaid time off, whichever is greater.
Canada-Quebec

Leave

Paid Time Off

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

In the first five years of employment and after five years of employment, employees are entitled to vacation pay at the rate of 4.00% of the regular wage rate of pay.

Public Holidays

In Quebec, there are 8 federal holidays. When a holiday falls on a weekend, it is observed either on the Friday prior to the weekend or the Monday after.

Sick Days

An eligible employee is entitled to up to 26 weeks of leave per year for reasons such as illness, an accident, organ or tissue donation, domestic violence, etc. if they have worked for the same employer for at least three consecutive months.

Maternity Leave

If an employee has worked for the company for at least a year prior to the due date, they are eligible to up to 17 weeks of leave. Maternity leave must start no earlier than the 17th week before the anticipated due date and must terminate no later than 18 weeks later. The worker is entitled to at least two more weeks of maternity leave if the delivery happens after the anticipated date.

When there is a chance that the pregnancy will end prematurely or when the pregnancy poses a risk to the mother’s or the unborn child’s health, special maternity leave may start four weeks before the due date. A medical certificate and two weeks’ notice are necessary.

Maternity and parenting benefits are provided by employment insurance to:

  • Those who are absent from work due to being pregnant or having just given birth
  • The parents of a newborn or recently adopted kid who are absent from work
  • For 15 weeks, employees are entitled to 55% of their earnings, up to a weekly maximum of CAD 650.

Only those who are absent from work due to being pregnant or having just given birth are eligible for maternity benefits. They are not transferable between parents.

Parental benefits may also be available to the person receiving maternity benefits.

Parental benefits may come after maternity benefits. Both applications can be made at once.

Paternity Leave

Parental leave includes paternity leave.

Parental Leave

For the purpose of caring for a newborn or adopted child, parents are entitled to up to 63 weeks of leave. Before the week of the baby’s birth or after the child is formally adopted, the parental leave cannot start.

No later than 78 weeks after the birth or adoption, the leave should start.

Maternity and parenting benefits are provided by employment insurance to:

  • Those who are absent from work due to being pregnant or having just given birth
  • The parents of a newborn or recently adopted kid who are absent from work

Termination

Termination Process

In Canada’s Quebec province, the termination procedure is standard. Unless an employer can demonstrate sufficient grounds for termination without notice (misconduct, etc.), it is based on termination reasons as defined by the General Labor Law.

Notice Period

Generally speaking, notice periods in Quebec are outlined in the employment contract or collective agreement and are dependent on the cause of termination and the length of the employee’s employment, as shown below:

  • If the employee is between three months and one year into their work, they must give seven days’ notice.
  • If the employee has between one and five years left on their contract, they must give 14 days’ notice.
  • If the employee is within their fifth year of employment, up to their tenth year of employment, four weeks’ notice is necessary.
  • If the employee has completed more than ten years of service, eight weeks’ notice is necessary.

Severance Pay

There is no legal requirement for severance pay in Quebec, Canada.

Probation Period

Probation Period

In Quebec, probationary periods for permanent employees typically last a minimum of three months.

Immigration

The Temporary Foreign Worker Program is run by the Canadian government and enables foreign nationals to apply to work in Canada for a specific amount of time. The program is offered when a qualified Canadian citizen or permanent resident is not available or not the right fit for the role, and it covers all employment roles and expertise levels.

Quebec offers both federal (of Canada’s government) and provincial (of Quebec’s government) immigration schemes.

VAT

In Quebec, Canada, the usual VAT rate is 5.00%. However, Quebec also has a provincial sales tax (PST), which is a retail sales tax, and this rate is 9.98%, making the combined GST and QST rate of 14.98%. This tax is applied when taxable products or services are bought, acquired, or brought into Quebec for use in Quebec.