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Normandin Beaudry

2017 Social Security Programs Parameters

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There, in black and white

NB Bulletin Vol. 20 N. 4, January 2017

As in previous years, we inform you about the parameters that will be used by the major social security programs in 2017.

Quebec Pension Plan and Canada Pension Plan

YMPE

The Year’s Maximum Pensionable Earnings (YMPE) for 2017 is $55,300, an increase of 0.7% over the 2016 YMPE of $54,900. 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 5.325% to 5.400% of contributory earnings in 2017, for an annual maximum contribution of $2,797.20. For the Canada Pension Plan, the employee and employer contribution rates remain at 4.950% of contributory earnings in 2017, for an annual maximum contribution of $2,544.30.

Monthly Pension

The maximum monthly retirement pension at age 65 for the Quebec Pension Plan and the Canada Pension Plan is set at $1,114.17 for 2017, based on the average YMPE over the last five years.

Employment Insurance

The Employment Insurance premium rate for employees in Quebec decreases by $0.25 per $100 of insurable employee earnings effective January 1st, 2017. The premium rate for employees in Quebec therefore decreases from $1.52 to $1.27. As for employers, they continue to contribute 1.4 times the employee rate so their premium rate will move down from approximately $2.128 to $1.778. These rates consider the Quebec Parental Insurance Plan (QPIP) in place since January 1st, 2006.

The Employment Insurance premium rate for employees outside Quebec also decreases by $0.25 per $100 of insurable employee earnings effective January 1st, 2017. The premium rate for employees outside Quebec therefore decreases from $1.88 to $1.63. As for employers, they continue to contribute 1.4 times the employee rate so their premium rate will move down from approximately $2.632 to $2.282 per $100 of insurable employee earnings.

The maximum insurable earnings increases from $50,800 to $51,300 for 2017.

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).

It is also important to note that Employment Insurance waiting period has been revised from two to one week effective on January 1st, 2017 as indicated in our November 2016 bulletin. Hence, to remain eligible for a reduced premium rate, the SCP would have to provide a maximum waiting period of one week. The organisations will have until January 2, 2021 to comply with this new requirement.

Quebec Parental Insurance Plan (QPIP)

The QPIP contribution rates remain unchanged in 2017, and are set at 0.548% for employees, 0.767% for employers and 0.973% for self-employed workers. The maximum insurable income increases from $71,500 to $72,500 for 2017.

Health Services Fund Contribution

For certain public sector employers and companies with a total payroll of more than $5 million, the current contribution rate remains unchanged in 2017. This rate is set at 4.26% of total payroll. For companies with a total payroll of less than $1 million, the rate will decrease from 2.70% to 2.50% of total payroll in 2017. For companies which have a total payroll of more than $1 million but less than $5 million, the rate will also decrease in 2017 according to the following formula:

Note that some employers of the primary sector and the manufacturing sector are eligible to a reduced contribution rate.

Commission des normes, de l'équité, de la santé et de la sécurité du travail

The current contribution rate will decrease as of January 1st, 2017, from 0.08% to 0.07% of insurable earnings. The maximum insurable earnings subject to contribution increases from $71,500 to $72,500 for 2017.

In Quebec, the minimum hourly wage is currently at $10.75.


Download the
Summary of the premiums and tax related to public health insurance plans
for all Canadian provinces and territories in 2017


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