The 2013 Social Security Programs ParametersLinkedIn
There, in black and white
NB Bulletin Vol. 15 N. 16, December 2012
As in previous years, we are pleased to inform you about the parameters that will be used by the major social security programs in 2013.
The Quebec Pension Plan and the Canada Pension Plan
The Year’s Maximum Pensionable Earnings (YMPE) for 2013 is $51,100, an increase of 2.0% over the 2012 YMPE of $50,100.
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 for the Quebec Pension Plan increase from 5.025% to 5.100% of contributory earnings in 2013, for an annual maximum contribution of $2,427.60. For the Canada Pension Plan, the contribution rates remain at 4.950% of contributory earnings in 2013, for an annual maximum contribution of $2,356.20.
The maximum monthly retirement pension at age 65 for the Quebec Pension Plan and the Canada Pension Plan is set at $1,012.50 for 2013, based on the average YMPE over the last five years.
The Employment Insurance premium rate for employees in Quebec increases by $0.05 per $100 of insurable employee earnings effective January 1st, 2013. The premium rate for employees in Quebec therefore increases from $1.47 to $1.52. As for employers, they continue to contribute 1.4 times the employee rate so their premium rate will move up from approximately $2.06 to $2.13.
The Employment Insurance premium rate for employees outside Quebec will increase from $1.83 to $1.88 per $100 of insurable employee earnings for 2013 and the employers continue to contribute 1.4 times the employee rate, for a premium rate of approximately $2.63 per $100 of insurable employee earnings.
The maximum insurable earnings increase from $45,900 to $47,400 for 2013.
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).
Quebec Parental Insurance Plan (QPIP)
The QPIP contribution rates remain unchanged for 2013. These rates are 0.559% for employees, 0.782% for employers and 0.993% for self-employed workers. The maximum insurable income increases from $66,000 to $67,500 for 2013.
Régime d’assurance maladie du Québec
The current contribution rate remains unchanged for 2013. 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 increase from $66,000 to $67,500 for 2013.
Commission des normes du travail
The current contribution rate remains unchanged for 2013, and is set at 0.08% of earnings subject to contribution. The maximum earnings subject to contribution increase from $66,000 to $67,500 for 2013.
In Quebec, the minimum hourly wage is currently at $9.90 and will be adjusted to $10.15 on May 1st, 2013.
1 The SCP weekly indemnity must be at least equal to the benefits provided by the Employment Insurance.
Please feel free to contact us for additional information.
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Montreal, Quebec, H3B 1S6