Quebec Pension Plan (QPP) 2024 Increase: What to Expect

Updated on June 14, 2024

The Quebec Pension Plan (QPP) serves as a vital pillar of financial stability for Quebec’s workforce, offering a mandatory public insurance program for individuals over 18 earning more than CAD 3,500 annually from employment. Unlike the CPP, Quebec-based employees contribute to the QPP.

Scheduled for implementation on January 1, 2024, enhancements to the QPP aim to fortify the financial stability of pensioners. Anticipated is an increase in the replacement rate of retirement income, shifting from 25% to 33.33%. Stay tuned for the latest update on the QPP Increase in 2024 to discover how much the Quebec Pension Plan is set to rise.

Understanding the Quebec Pension Plan (QPP)

Introduced in 1966, the Quebec Pension Plan (QPP) mirrors the Canada Pension Plan (CPP) and serves as a mandatory public insurance program for Quebec workers. Similar to the CPP, the QPP provides survivors’ benefits, disability payments, and retirement pensions for individuals who have worked in Quebec and their families. Funding for the QPP comes from both employer and employee payroll contributions.

Those who work or have worked in Quebec, along with their families, receive essential financial support for retirement, death, or disability through the Quebec Pension Plan. If you’re 18 or older and earn more than CAD 3,500 annually from employment, contributions to the plan are mandatory.

QPP 2024: Key Information

Plan NameQuebec Pension Plan (QPP)
CategoryGovernment Aid


QPP 2024 Raise

The QPP underwent enhancements on January 1, 2019, introducing two plans: the base plan and an additional plan. The employee’s QPP contribution now consists of the basic contribution plus an extra contribution. The rollout of the extra plan’s contribution unfolds as follows:

  1. From 2019 to 2023, the basic contribution and the initial supplementary contribution constitute the employee’s QPP contribution. Computed on the portion of pensionable pay or compensation exceeding CAD 3,500, they apply up to the annual maximum pensionable earnings under the QPP.
  2. Starting in 2024, the employee’s QPP contribution will encompass the base contribution, a first extra contribution, and a second additional contribution. The calculation of the second additional contribution utilizes the amount of an employee’s pensionable salary or wages exceeding their AMPE under the QPP, up to the extra AMPE under the QPP. This incurs an additional two percent deduction at an 8% rate. The extra MPE is set at 107% of the 2024 maximum pensionable earnings and 114% of the maximum pensionable earnings for 2025 and subsequent years.

QPP 2024 Proposed Revisions

Raising the QPP Starting Age to 72 for Enhanced Financial Stability

The proposed changes in the Quebec Pension Plan (QPP) include increasing the maximum age for initiating QPP payments from 70 to 72. This adjustment aims to support individuals in bolstering their financial stability by allowing them to delay pension commencement. Those opting for a delayed pension start will benefit from an increased QPP pension under this new provision.

In alignment with the Canada Pension Plan (CPP), employees receiving QPP benefits while still working will have the option to cease QPP payments from age 65. Should employees opt to continue contributions, they will accumulate pension credits, and their employers will be obligated to make corresponding QPP contributions.

Similarly, mirroring the CPP, the average earnings used to calculate the QPP pension will no longer be affected by reduced working hours beyond the age of 65.

Calculating Quebec Pension Plan (QPP)

The QPP pension is determined by averaging contributions made to the plan from the age of 18 until the year of pension application, irrespective of whether the applicant worked during that period. The amount one receives is influenced by the age at which they start receiving the QPP pension. Additionally, the QPP amount is influenced by the duration of one’s contributions to the plan and the earnings during that period of employment.

QPP Contributions 2024

The Quebec Pension Plan (QPP) covers retirement and disabled individuals for pension income. In the event of an employee’s death, the QPP provides payments to their spouse or dependents. QPP contributions are divided equally between you and the employee. Once an employee’s earnings surpass the maximum pensionable salary or wages under the QPP for the year, withholding the employee’s QPP contribution and making your own payment is discontinued.

Understanding Quebec Pension Plan (QPP

The Quebec Pension Plan (QPP) is a compulsory public insurance program. Individuals in Quebec, aged 18 or older, with annual employment income surpassing CAD 3,500, are eligible to enroll. Both employers and employees contribute equally to the QPP.


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