Questions about Québec payroll legislation? We’ve got you covered!

If you’re a Québec-based business, or an organization with employees in Québec, you likely have questions about a few provincially-specific payroll legislative components. We get it! Payroll isn’t the only task on your to-do list even under the most straightforward circumstances, and when an irregular scenario pops up it can lead to extra time spent sifting through and trying to understand the legislation to ensure it’s applied exactly right.

Legislative requirements differ between provinces and territories in Canada, but centralized info can help Canadian businesses stay compliant. Today, we’re here to answer some of the questions most commonly asked of our own payroll pros, including minimum wage, overtime, public holidays (and public holiday pay), Québec Pension Plan (QPP), Québec Parental Insurance Plan (QPIP), and more. Plus, we dive into some recent legislative changes you won’t want to miss.

We’ll be going over the following to help you get a solid grasp on Québec payroll legislation:

• What makes Québec payroll different from the rest of Canada?
• What are the current minimum wage rates in Québec?
• How is overtime calculated in Québec?
• What are Québec’s eight paid statutory holidays?
• What do employers need to know about QPP contributions?
• What are the QPIP and EI requirements for Québec?
• What should employers know about CNESST?
• How much vacation are Québec employees entitled to?
• What are the notice of termination requirements in Québec?
• What leaves are Québec employees entitled to?
• How does provincial income tax work in Québec?
• What is the QHSF, and what do employers need to know (including the new agriculture exemption)? New!
• What other employer-only contributions apply in Québec?
• Does Québec require pay equity compliance?
• How does Bill 96 affect Québec employers?
• How often do Québec employers remit to Revenu Québec?
• What are the year-end filing deadlines for Québec employers?

All rates and rules referenced in this article have been sourced from Revenu Québec, the CNESST, and the Canada Revenue Agency. Always verify current figures with the appropriate authority before running payroll.

What makes Québec payroll different from the rest of Canada?

Québec is the only province where employers remit to two completely separate tax authorities, maintain a distinct pension and parental insurance system, and navigate language legislation that directly affects how payroll documents are issued. Provincial income tax is remitted to Revenu Québec while federal income tax and EI are remitted to the Canada Revenue Agency (CRA). Employees receive both an RL-1 and a T4 at year-end, and employers must file both an RL-1 Summary and a T4 Summary. On top of that, Québec has its own pension plan (QPP instead of CPP), its own parental insurance program (QPIP instead of federal EI maternity and parental benefits), and employer obligations like the Quebec Health Services Fund (QHSF) that don’t exist in most other provinces.

Minimum Wage

Federal and provincial legislation dictates that all employees are entitled to receive minimum wage, which is the lowest rate an employer can legally pay its employees, but the minimum wage itself differs across the country. In Québec, there are different minimum wage rates depending on the type of work an employee does, such as for those receiving tips.

What are the current minimum wage rates in Québec?

Québec has different minimum wage rates for general employees and for employees receiving tips. The general rate typically increases on May 1 each year. For the most current rates, visit the CNESST minimum wage page.

Here’s what employers need to know about minimum wage in Québec:

For more information about wages in Québec, including minimum wage, visit: https://www.cnesst.gouv.qc.ca/en/working-conditions/wage-and-pay/wages.

Overtime

Typically, when an employee works additional hours beyond their standard schedule, they qualify to be paid overtime. However, the threshold of hours worked to be eligible for overtime differs between provinces and territories. In Québec, overtime is based on a 40-hour workweek, meaning that an employee has to work in excess of 40 hours to qualify for overtime rates (for which the rate is 1.5 times the rate they’re paid for regular hours).

How is overtime calculated in Québec?

Here’s what employers need to know about overtime calculations in Québec:

• Night or evening shift premiums added to an employee’s hourly wage are not included in overtime calculations.
• Statutory general holidays are considered days worked when calculating overtime; however, this doesn’t apply if the employee doesn’t normally work on the day on which the holiday falls.
• Annual vacation is considered days worked when calculating overtime.

Can employees bank overtime in Québec?

In Québec, it’s also permissible for an employee to request that their overtime be banked or for banking overtime to be a part of a collective agreement. In this scenario, employees are to receive 1.5 hours of banked time for each hour of overtime worked, which would be paid out at a later date at the regular rate of pay.

For more information on overtime and overtime calculations in Québec, visit: https://www.cnesst.gouv.qc.ca/en/working-conditions/wage-and-pay/wages/overtime.

Payworks pro tip: for an overview of overtime and the steps to consider in making a strategic plan that clearly defines overtime, visit: https://blog.payworks.ca/overview-of-overtime-employers-should-have-a-strategic-plan-that-clearly-defines-overtime.

Paid statutory holidays

In Québec, there are eight paid statutory holidays where eligible employees are to receive the day off and an indemnity. Employers are unable to choose a different day to observe the holiday.

What are Québec’s eight paid statutory holidays?

1. New Year’s Day
2. Good Friday or Easter Monday
3. National Patriot’s Day
4. Saint-Jean-Baptiste Day (Fête nationale)
5. Canada Day
6. Labour Day
7. Thanksgiving
8. Christmas Day

Employers have the option to observe either Good Friday or Easter Monday, at their discretion.

There are two noteworthy provisions of which employers should be aware for the paid statutory holidays in Québec. The first is the option to observe either Good Friday or Easter Monday (noted above). The second is the special provision for Québec’s National Holiday. Employees are eligible to receive the day off and an indemnity if they are employed on the date of Québec’s National Holiday. In comparison, for all other paid statutory holidays in the province, employees are not eligible to receive the day off and an indemnity if they are absent from work the day before or after the statutory holiday without a valid reason or without the employer’s authorization.

Day After New Year’s Day

Day After New Year’s Day is not one of the eight paid statutory holidays in Québec; however, it’s considered a banking holiday in the province, meaning that banks and government offices are typically closed on this day or a day in lieu if it falls on a non-working day. Québec businesses in particular should be aware of this day and how it could impact their payroll processing and payment dates, and adjust accordingly if their banking institution is affected by this holiday.

For more information on statutory holidays in Québec, visit: https://www.cnesst.gouv.qc.ca/en/working-conditions/leave/statutory-holidays/list-paid-statutory-holidays.

Changes to the Québec Pension Plan (QPP)

The Québec Pension Plan (QPP) is unique to the Province of Québec. Eligible employees, employers, and self-employed persons in Québec contribute to the QPP retirement pension, whereas individuals in all other provinces and territories contribute to the Canada Pension Plan (CPP).

What do employers need to know about QPP contributions?

Both employees and employers contribute to the base QPP at the same rate, up to the Year’s Maximum Pensionable Earnings (YMPE), with a basic exemption applied. Contribution rates, ceilings, and maximum contributions are updated annually. For the current year’s figures, consult Revenu Québec’s Employer’s Kit.

QPP2 (enhanced contributions): Starting in 2024, a second earnings ceiling was introduced for QPP. Previously, the government set a single maximum contribution ceiling. Now there are two: the YMPE and the Year’s Additional Maximum Pensionable Earnings (YAMPE). Employees who earn above the first ceiling contribute an additional percentage (QPP2) until they’ve surpassed the second ceiling. Both employees and employers contribute to QPP2 at the same rate.

Employees aged 65 or older can choose to opt out of QPP contributions, and employees stop QPP contributions the year they turn 73. For more in-depth information on the QPP second earnings ceiling, visit: https://blog.payworks.ca/heads-up-important-cpp-qpp-legislation-changes-effective-january-2024.

It’s important for Québec employers to be aware of these changes because it’s the responsibility of the employer to deduct and remit all QPP contributions correctly. QPP overages could occur if the age eligibility parameters are not applied correctly, and QPP shortages could occur if the second earnings ceiling is not applied.

Québec Parental Insurance Plan (QPIP) and Employment Insurance (EI)

Another unique element to payroll legislation in Québec in comparison to other provinces and territories in Canada is the Québec Parental Insurance Plan (QPIP). QPIP is an income replacement program applicable to Québec employees. Generally, it applies to any person taking maternity, paternity, parental, or adoption leave who meets the eligibility criteria.

What are the QPIP and EI requirements for Québec?

Both employees and employers contribute to QPIP at rates set annually by Revenu Québec, up to a maximum insurable earnings ceiling. For the current year’s QPIP premium rates and maximums, visit: https://www.rqap.gouv.qc.ca/en/about-the-plan/general-information/premiums-and-maximum-insurable-earnings.

It’s important for Québec employers to know that QPIP doesn’t negate Employment Insurance (EI) deductions. Québec employees pay a reduced EI rate compared to employees in other provinces (because QPIP covers maternity and parental benefits that EI covers elsewhere), but EI contributions are still required. The EI legislation regarding the annual maximum employee/employer contribution, contribution rates, and annual maximum insurable earnings differs for Québec employees in comparison to other provinces and territories in Canada.

For more information on QPIP, visit: https://www.rqap.gouv.qc.ca/en/about-the-plan/general-information/premiums-and-maximum-insurable-earnings.

CNESST

CNESST is a mandatory remittance for Québec employers. Every employer with at least one employee in Québec must register with the CNESST for occupational health and safety insurance. Premiums are based on your total assessable payroll and your industry risk classification, and rates are usually reassessed every year for January 1.

What should employers know about CNESST?

The CNESST sets a maximum assessable earnings cap per employee each year and requires employers to file an annual wage statement before March 15. Your premium is calculated as a percentage of assessable payroll, with the rate set by the CNESST based on your industry risk classification. CNESST rates are usually reassessed every year for January 1. For current rates and ceilings, visit the CNESST website.

Québec employers should also be aware of the many labour standards applicable under CNESST. While not all-encompassing, we’ve highlighted a couple below.

Wage disparity

Legislation dictates that employers cannot offer an employee a lower hourly wage compared to another if they perform the same tasks and that decision is based specifically on whether or not the employee is full time, part time, on call, permanent, or casual. Employers can pay employees who perform the same tasks a different wage if that distinction is because of either seniority or experience.

Rest periods

Each week, employers are required to allot employees a rest period of 32 consecutive hours at a minimum. There’s an exception for farm workers: if mutually agreed upon, the rest period can be deferred to the following week.

For more information on CNESST, visit: https://www.cnesst.gouv.qc.ca/en.

How much vacation are Québec employees entitled to?

Vacation entitlements in Québec are based on the employee’s length of continuous service. For employees with less than one year of service, the vacation pay rate is 4%, and they’re entitled to one day per month worked to a maximum of two weeks. For employees with one to less than three years of service, the rate is 4% and the entitlement is two uninterrupted weeks. For employees with three or more years of service, the rate increases to 6% and the entitlement is three uninterrupted weeks.

It’s worth noting that Québec’s vacation entitlements are more generous than many other provinces at the three-year mark. In several provinces, employees don’t reach three weeks of vacation until they’ve been with the same employer for five or more years.

For more information on vacation in Québec, visit: CNESST — Annual Vacation.

What are the notice of termination requirements in Québec?

The amount of notice an employer must provide to a departing employee in Québec depends on the employee’s length of continuous service. Employees with less than three months of service are not entitled to notice. From there, the requirements are: one week for three months to one year, two weeks for one to five years, four weeks for five to 10 years, and eight weeks for 10 or more years.

For group terminations involving 10 or more employees within a two-month period, the requirements increase: eight weeks for 10 to 99 employees, 12 weeks for 100 to 299 employees, and 16 weeks for 300 or more employees.

For more information, visit: CNESST — Notice of Termination.

What leaves are Québec employees entitled to?

Québec’s leave framework is one of the most comprehensive in Canada. Several entitlements exist only in Québec, including the five-day personal leave for the birth or adoption of a child, the paid day off for a wedding or civil union, and extended leave for victims of crime or the suicide of a loved one. Knowing what employees are entitled to protects both your team and your business. 

Under CNESST, family leaves include adoption, maternity, paternity, special leave during pregnancy, family or parent obligations, weddings or civil unions, death and funeral, suicide, and disappearance of a child (a minor).

There are also leaves for specific situations under CNESST, such as leaves for termination of pregnancy, for reservists, organ or tissue donation, victims of domestic or sexual violence, and victims of crime.

Employees are also entitled to two paid days off for non-work-related accidents or illnesses per calendar year if they’ve worked continuously for their employer for three or more months.

Whether these leaves are paid or unpaid varies by type. For all the details, visit: CNESST — Leaves and Absences.

Provincial income tax

How does provincial income tax work in Québec?

Québec is unique in Canada in that provincial income tax is remitted to Revenu Québec, completely separate from federal income tax remitted to the CRA. Each year, Revenu Québec indexes the provincial income tax thresholds and publishes updated bracket amounts, basic personal amounts, and lump sum withholding rates in the Employer’s Kit. Federal lump sum rates are published separately by the CRA. Employers should review both sets of rates at the start of each year to ensure accurate withholding.

Payworks pro tip: The Payworks Payroll application is set up to automatically apply updated income tax rates each year, saving our clients time and the stress of potential retroactive corrections. If additional deductions are requested, admins can enter those values into the system and the calculations will adjust going forward. To ensure deduction amounts are correct, our in-house payroll experts recommend that employers have any employees who claim anything other than the basic deductions redo their TD1 and TP-1015.3-V forms every year.

Bonus: Payworks also remits the federal and provincial tax deducted on our clients’ behalf. For Québec employers, that means federal tax and EI are remitted to the CRA, and provincial tax, QPP, QPIP, QHSF, and CNESST are remitted to Revenu Québec.

Québec’s Health Services Fund (QHSF)

In the other four jurisdictions in Canada with similar payroll taxes, including British Columbia, Newfoundland, Ontario, and Manitoba, this type of tax is called the Employer Health Tax (EHT) or the HE Levy. In Québec, it’s known as the Health Services Fund (QHSF), and its purpose is to help finance Québec’s health services.

What is the QHSF, and what do employers need to know?

The QHSF is an employer-paid contribution remitted to Revenu Québec. The rate is based on your employment sector and your total worldwide payroll. There are three tiers: a lower rate for smaller payrolls, a graduated formula for mid-range payrolls, and a flat higher rate for larger payrolls. Employers in the primary and manufacturing sector benefit from lower rates at the smaller payroll tiers. Public sector employers pay the top-tier rate regardless of total payroll. For the current year’s QHSF rates and thresholds, visit Revenu Québec.

New! QHSF exemption for agriculture, forestry and fishing

For the 2026 and 2027 calendar years, eligible employers in the agriculture, forestry, and fishing sectors are fully exempt from QHSF contributions, provided that more than 50% of their total payroll is attributable to eligible activities. This exemption was announced on December 1, 2025, and broadened on January 28, 2026. See Revenu Québec’s Tax News for full eligibility details and qualifying NAICS codes.

For more information on QHSF calculations, visit Revenu Québec.

What other employer-only contributions apply in Québec?

Beyond the QHSF, Québec employers should be aware of two additional contributions.

Labour Standards Contribution (CNT)

The Labour Standards contribution is a small percentage applied on remuneration up to the annual maximum set by Revenu Québec. This contribution is not remitted through your regular payroll remittances. Instead, it’s the employer’s responsibility to remit this amount when completing their RL-1 Summary (RLZ-1.S-V). For the current rate, visit Revenu Québec — Labour Standards Contribution.

Workforce Skills Development and Recognition Fund (WSDRF)

Employers with a total payroll exceeding $2 million must invest at least 1% of their payroll in workforce training. If the minimum amount is not invested, the difference must be contributed to the fund.

For more information, visit: Revenu Québec — WSDRF Contribution.

Does Québec require pay equity compliance?

Yes. Québec’s Pay Equity Act is one of the most far-reaching employer obligations in the province. Once you’ve had 10 or more employees at any point in a calendar year, the Act applies to you permanently. The obligation doesn’t go away if your headcount drops below 10.

Employers subject to the Act must complete an initial pay equity exercise and then conduct a maintenance review every five years. These reviews have hard deadlines and real consequences if they’re missed.

For more information, visit: CNESST — Pay Equity.

How does Bill 96 affect Québec employers?

Bill 96 (the Charter of the French Language) is not just a language policy. It has direct, practical implications for how employers issue documents, use workplace software, and communicate with employees. Payroll and HR tools used in Québec must be available in French, and employee-facing documents such as pay stubs, employment contracts, and job postings must be provided in French or in a bilingual format with French equally prominent.

Revenu Québec

When looking at the unique elements of payroll in the Province of Québec in comparison to the rest of the country, we’d be remiss not to touch upon Revenu Québec, which is the governing body that collects income taxes (among other mandates). Québec employers are required to remit to Revenu Québec as well as the Canada Revenue Agency (CRA). Federal tax and EI are to be remitted to the CRA, while provincial tax, QPP, QPIP, QHSF, and CNESST are to be remitted to Revenu Québec.

How often do Québec employers remit to Revenu Québec?

Your remittance frequency is assigned by Revenu Québec based on your average monthly withholding and is reviewed each year. Frequencies range from annual (for very small employers) up to weekly (for employers with average monthly remittances of $100,000 or more). It’s critical to remember that you remit to Revenu Québec and the CRA separately, as they are different accounts with different deadlines.

For more information on remitting to Revenu Québec, visit: https://www.revenuquebec.ca/en/businesses/source-deductions-and-employer-contributions/remitting-source-deductions-and-employer-contributions/.

What are the year-end filing deadlines for Québec employers?

Year-end in Québec means producing two sets of slips (RL-1 and T4), two sets of summaries, and a separate CNESST wage declaration, all within tight February and March deadlines. Missing any one of them can result in penalties, interest charges, and increased scrutiny from Revenu Québec.

Here are the key deadlines:

• February 28: Issue RL-1 slips to employees and file the RL-1 Summary (RLZ-1.S-V) with Revenu Québec.
• February 28: Issue T4 slips to employees and file the T4 Summary with the CRA.
• February 28: Remit the Labour Standards contribution and WSDRF (if applicable) via your RL-1 Summary.
• Before March 15: File your CNESST annual wage statement.

For more information, visit: Revenu Québec — Filing RL Slips and the RL-1 Summary.

At Payworks, we want to help Canadian businesses stay informed on payroll legislation and changes so they can continue to pay their staff on time and with confidence. That’s why we’ve created a NEW Quebec Payroll Guide for Canadian Business – download for free: https://www.payworks.ca/landing-pages/campaigns/quebec-payroll-guide-2026.

These articles are produced by Payworks as an information service. They are not intended to substitute professional legal, regulatory, tax, or financial advice. Readers must rely on their own advisors, as applicable, for such advice.