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Normandin Beaudry

The 2011 Social Security Programs Parameters

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There, in black and white

NB Bulletin Vol. 14 N. 1, January 2011

The Quebec Pension Plan and the Canada Pension Plan

The Year's Maximum Pensionable Earnings (YMPE) for 2011 is $48,300, an increase of 2.3% over the 2010 YMPE of $47,200. The basic exemption remains at the current level of $3,500, which is the level applicable since January 1st, 1998. Employee and employer contribution rates remain at 4.95% of contributory earnings in 2011, for an annual maximum contribution of $2,217.60. The maximum monthly retirement pension at age 65 is set at $960.00 for 2011, based on the average YMPE over the last five years.

Employment Insurance

The Employment Insurance premium rate for employees in Quebec increases by $0.05 per $100 of insurable employee earnings effective January 1st, 2011. The premium rate for employees in Quebec therefore increases from $1.36 to $1.41. As for employers, they continue to contribute 1.4 times the employee rate so their premium rate will move up from approximately $1.90 to $1.97. These rates consider the Quebec Parental Insurance Plan (QPIP) in place since January 1st, 2006.


The Employment Insurance premium rate for employees outside Quebec will increase from $1.73 to $1.78 per $100 of insurable employee earnings for 2011 and the employers continue to contribute 1.4 times the employee rate, for a premium rate of approximately $2.49 per $100 of insurable employee earnings.

The maximum insurable earnings increases from $43,200 to $44,200 for 2011.

Employer contributions can be further reduced for those offering a salary continuation program (SCP) registered with the Employment Insurance Commission. There are four types of SCPs each offering a unique Employment Insurance premium rate reduction:

  • Type 1: SCP based on the accumulation of paid sick days of at least one day per month and a maximum of at least 75 days.
  • Type 2: SCP based on the accumulation of paid sick days of at least one day and 2/3 per month and a maximum of at least 125 days.
  • Type 3: SCP providing a weekly indemnity1 for at least 15 weeks.
  • Type 4: SCP providing a weekly indemnity1 for at least 52 weeks (this reduction is only available to employers of public and para-public sectors).

Employer Premium Rates as of January 1st, 2011(1)
 


 

  Reduced Rates(2)
 Regular Rates Applicable
Rates
Employee
Premium Factor
SCP
Type
QcOther
Provinces
ReductionQc(3)Other
Provinces
Qc(3)(4)Other(5)
Provinces
1$1.97$2.49$0.27$1.70$2.221.2091.248
2$1.97$2.49$0.40$1.57$2.091.1161.175
3$1.97$2.49$0.39$1.58$2.101.1231.181
4$1.97$2.49$0.42$1.55$2.071.1021.164
(1)Per $100 of insurable employee earnings.
(2)The reduced premium rates are applicable for one complete year. In the event a plan is registered during the year, the adjustment is prorated according to the date of registration.
(3)For Quebec employers whose employees all work in Quebec.
(4)Premium factor to be applied to the employee premium rate of $1.41 per $100 of insurable employee earnings.
(5)Premium factor to be applied to the employee premium rate of $1.78 per $100 of insurable employee earnings.


__________________________
1 The SCP weekly indemnity must be at least equal to the benefits provided by the Employment Insurance.

Quebec Parental Insurance Plan (QPIP) 

The QPIP contribution rates for the year 2011 are 0.537% for employees, 0.752% for employers and 0.955% for self-employed workers, representing an increase of 6.2% over the 2010 rates of 0.506%, 0.708% and 0.899% respectively. The maximum insurable income increases from $62,500 to $64,000 for 2011. 

Régime d'assurance maladie du Québec 

The current contribution rate remains unchanged for 2011. This rate is set at 4.26% of total payroll for certain public sector employers and for companies with a total payroll of more than $5 million. For companies with a total payroll of less than $1 million, the rate is set at 2.70% of total payroll. For companies which have a total payroll of more than $1 million but less than $5 million, the rate is a function of total payroll and ranges from 2.70% to 4.26% of total payroll according to the following formula: 

Commission de la santé et de la sécurité du travail

The contribution rate to the Commission de la santé et de la sécurité du travail is determined according to the type of industry and, if applicable, to the claims experience. The maximum earnings for the income replacement benefit increases from $62,500 to $64,000 for 2011.

Commission des normes du travail

The current contribution rate remains unchanged for 2011, and is set at 0.08% of earnings subject to contribution. The maximum earnings subject to contribution increases from $62,500 to $64,000 for 2011.

In Quebec, the minimum hourly wage is currently at $9.50 and will be adjusted to $9.65 on May 1st, 2011.

 

Please feel free to contact us for additional information.

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Montreal, Quebec, H3B 1S6