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Normandin Beaudry

2014 Social Security Programs Parameters

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There, in black and white

NB Bulletin Vol. 17 N. 1, January 2014

As in previous years, we inform you about the parameters that will be used by the major social security programs in 2014.

Quebec Pension Plan and Canada Pension Plan

YMPE
The Year’s Maximum Pensionable Earnings (YMPE) for 2014 is $52,500, an increase of 2.7% over the 2013 YMPE of $51,100. The basic exemption remains at the current level of $3,500, which is the level applicable since January 1st, 1998.

Annual Contribution
Employee and employer contribution rates for the Quebec Pension Plan increase from 5.100% to 5.175% of contributory earnings in 2014, for an annual maximum contribution of $2,535.75. For the Canada Pension Plan, the employee and employer contribution rates remain at 4.950% of contributory earnings in 2014, for an annual maximum contribution of $2,425.50.

Monthly Pension
The maximum monthly retirement pension at age 65 for the Quebec Pension Plan and the Canada Pension Plan is set at $1,038.33 for 2014, based on the average YMPE over the last five years.

Employment Insurance

The Employment Insurance premium rate for employees in Quebec increases by $0.01 per $100 of insurable employee earnings effective January 1st, 2014. The premium rate for employees in Quebec therefore increases from $1.52 to $1.53. As for employers, they continue to contribute 1.4 times the employee rate so their premium rate will move up from approximately $2.13 to $2.14. These rates consider the Quebec Parental Insurance Plan (QPIP) in place since January 1st, 2006.

The Employment Insurance premium rate for employees outside Quebec remains at $1.88 per $100 of insurable employee earnings for 2014 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 $47,400 to $48,600 for 2014.

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 2014. These rates are 0.559% for employees, 0.782% for employers and 0.993% for self-employed workers. The maximum insurable income increases from $67,500 to $69,000 for 2014.

Régime d’assurance maladie du Québec

The current contribution rate remains unchanged for 2014. 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 $67,500 to $69,000 for 2014.

Commission des normes du travail

The current contribution rate remains unchanged for 2014, and is set at 0.08% of earnings subject to contribution. The maximum earnings subject to contribution increase from $67,500 to $69,000 for 2014.

In Quebec, the minimum hourly wage is currently at $10.15.


Download the
Summary of the Health insurance premiums and tax
for all Canadian provinces and territories
by clicking here PDF (20 kb).

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.

514.285.1122
 
630, René-Lévesque Blvd. West, 30th floor
Montreal, Quebec, H3B 1S6