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Payroll and Benefits Guide Canada – Quebec

Last updated: Mar 03, 2026

Currency
Canadian Dollar (CAD)
Employer Taxes
13.192%
Payroll Frequency
Bi-Monthly / Monthly
Employee Costs
7.204%
Capital
Quebec City
Date Format
yyyy/mm/dd
Fiscal Year
1 January - 31 December
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Contribution

Employer Payroll Contributions
1.25-4.26%
Health Services Fund (HSF)
1.78% Employment Insurance, applied on salary up to 65,700 CAD annually
0.692%
Quebec Parental Insurance Plan (QPIP), applied on salary up to 98,000 CAD annually
5.40%
Quebec Pension Plan (QPP), applied on salary between 3,500 to 71,300 CAD
0.06%
Labor Standards applied on income up to 98,000 CAD
1.00%
Workforce Skills and Development (WSDRF), applied if total payroll for the year is over 2 million CAD for the year by allotting an amount representing at least 1% total payroll to eligible training expenditures. Where there are no eligible training expenditures or the eligible training expenditures are less than 1% of the total payroll,  the applied contribution is equal to the difference between 1% of the total payroll and the amount of eligible training expenditures. Additional terms can be found here.
Up to 13.192%
Total Employment Cost

 

Employee Payroll Contributions
1.31%
Employment Insurance, applied on salary up to 65,700 CAD
0.494%
Quebec Parental Insurance Plan (QPIP), applied on salary up to 98,000 CAD
5.40%
Quebec Pension Plan (QPP), applied on salary between 3,500 to 71,300 CAD
7.204%
Total Employee Cost
Employee Income Tax
Federal
Annual
15.00%
Up to 57,375 CAD
20.50%
57,375 – 114,750 CAD
26.00%
114,750 – 177,882 CAD
29.00%
177,882 – 253,414 CAD
33.00%
253,414 CAD and over
Quebec
Annual
14%
Up to 53,255 CAD
19%
53,255 – 106,495 CAD
24%
106,595 –  129,590 CAD
25.75%
129,590 and over

Employer taxes

Highest
Lowest

Employee taxes

Highest
Lowest

Minimum Wage

General

The minimum wage in Quebec is 16.10 CAD per hour.

The minimum wage rate set for employees of Federally regulated organizations will be the current minimum wage rate specified in the jurisdiction in which the employee performs the work.

MINIMUM WAGE (PER MONTH)

Highest
Lowest

Payroll

Payroll Cycle

An employer has 1 month to remit an employee’s first pay. After this, wages must be paid at regular intervals of no more than 16 days, or 1 month in case of managerial personnel. If pay day falls on a statutory holiday, the wages must be paid on the preceding working day.

13th Salary

There is no legislation for 13th-month payments in Quebec, Canada.

Authority Payments

Authority Payment

Paid To

Due Date

Method

Federal Taxes, Employer contribution + withholding taxes

CRA

Either monthly or semi monthly

e-check

Health Contribution

EHT

Monthly

e-check

Working Hours

General

Per the Quebec Labour Standards Act, the standard workweek in Quebec for most workers is 8 hours per day, 40 hours per week. However, certain industries have longer working hours in place up to 60 hours per week e.g. security guards.

Overtime

Overtime is calculated based on the higher of the daily or weekly threshold.

  • Daily Threshold: Hours worked over 8 hours in a day.
  • Weekly Threshold: Hours worked over 44 hours in a week.
  • Calculation: The employee is entitled to overtime pay for the number of hours that is the greater of the daily overtime hours or the weekly overtime hours.

Example: If an employee works 10 hours for 5 days (50 hours total):

  • Daily Overtime: (10 hours – 8 hours) $\times$ 5 days = 10 hours
  • Weekly Overtime: (50 hours – 44 hours) = 6 hours
  • Result: The employee is paid 10 hours of overtime (the greater amount).

Mandatory Overtime Pay Rate

  • Minimum Pay Rate: The minimum overtime rate is 1.5 times (Time and a half) the employee’s regular wage rate.

Alternative Compensation: Time Off in Lieu (Banking)

Instead of monetary pay, an employer and employee may enter into a written agreement to compensate overtime with paid time off.

  • Banking Rate: Overtime hours are banked at a rate of at least 1 hour of paid time off for every hour of overtime worked.
  • Payout: The banked time off must be used within 6 months of the end of the pay period in which it was earned. If not used, the employer must pay the overtime at the 1.5 times monetary rate.

Maximum Hours and Rest

  • Maximum Work Day: An employee generally cannot be required to work more than 12 hours in a single day, except in emergency situations (e.g., accident, urgent plant work, unforeseeable circumstances).
  • Day of Rest: Employees are entitled to at least one day of rest in each work week.

Exemptions

Overtime pay rules do not apply to certain categories of employees, regardless of hours worked:

  • Managers and Supervisors: Employees whose duties are primarily managerial or supervisory and who have the authority to make decisions on behalf of the employer.
  • Professionals: Employees in certain regulated professions (e.g., Accountants, Architects, Engineers, Lawyers, IT professionals, Optometrists, etc.).
  • Specific Sales Roles: Certain commissioned salespeople working outside the employer’s premises (e.g., real estate brokers, car salespersons).

Leave

Annual Leave (vacation)

In Quebec, employees are entitled to two consecutive weeks of vacation leave after the first year of employment and three consecutive weeks of leave after five years of employment. However, it is common to offer leave from day 1.
Employees are entitled to vacation pay of 4.00% of the regular salary rate of pay for the first five years of employment and 6.00% of the regular salary rate of pay after five years of employment.

In Quebec, under the Labour Standards Act, employees are entitled to vacation time based on their length of continuous employment with the same employer:

  • Less than 1 year of service = 1 day leave per full month of uninterrupted service, not exceeding 2 weeks.
  • 1 to 3 years of service = 2 consecutive weeks of vacation.
  • Above 3 years of employment = 3 consecutive weeks of vacation.

Employees are also entitled to vacation pay based on service length:

  • For employees with less than 3 years of employment, vacation pay must be at least 4% of the gross wages.
  • For Employees with 3 or more years of employment, vacation pay must be at least 6% of the gross wages.

The worker must receive their vacation indemnity in a lump sum before they start their vacation or at the time of the current pay covering the period of their vacation.

PTO Carryover

Note:

  • For Papaya Direct, this varies by province; it’s allowed if going above and beyond the minimums but the policy must be reviewed by HR. Employees cannot skip taking vacation time that is mandated by law. Vacation that’s over and above the minimum entitlements can be carried over as per client policy.
  • For People2.0, there is no carryover.

Public Holidays

There are 8 national holidays in Quebec.

If a holiday falls on a weekend, it the holiday is observed on the Friday before the weekend or on the following Monday or must be paid the indemnity for the holiday.

Date  Day of Week  Holiday Name (English)  Holiday Notes 
Jan 1  Thursday  New Year’s Day  Statutory Holiday 
Jan 2  Friday  Day after New Year’s Day  Statutory Holiday (unique to Quebec) 
Apr 3 or Apr 6  Friday or Monday  Good Friday or Easter Monday  Employer’s choice—only one of these two days is a paid statutory holiday. 
May 18  Monday  National Patriots’ Day  Always the Monday preceding May 25. Replaces Victoria Day. 
Jun 24  Wednesday  Quebec National Holiday  Mandatory holiday, governed by its own Act. 
Jul 1  Wednesday  Canada Day  Statutory Holiday. 
Sep 7  Monday  Labour Day  Always the first Monday in September. 
Oct 12  Monday  Thanksgiving Day  Always the second Monday in October. 
Dec 25  Friday  Christmas Day  Statutory Holiday. 

Sick Days

Sick leave entitlement in Manitoba depends on whether the employee falls under provincial or federal regulation, and whether they qualify for Employment Insurance (EI) sickness benefits.

  • Under Quebec’s Labour Standards Act, non work related accident or illness leave of up to 2 days paid is available after completing at least 3 months of continuous employment. This leave can also be used for the purpose of family care obligations. Employers may request reasonable verification, such as a medical certificate to support the employee’s need for leave. More information can be found on Quebec’s Government website.
  • Federally regulated workers are entitled under the Canada Labour Code to receive up to 10 days paid sick leave per year. These 10 days paid sick leave is accrued during the year after an initial 30-day qualifying period of continuous employment has been completed.  Following this qualifying period, workers earn the first 3 days of paid medical leave. Following this, workers earn 1 further day of paid sick leave at the start of each month after completing 1 month of continuous employment until a maximum of 10 days paid sick leave per year has been accrued. Any days of medical leave with pay that are not taken within the year will be carried over to the beginning of the new year up to a maximum of 10 days. More details and eligibility criteria can be found on the Government of Canada website.
  • Regardless of jurisdiction, workers may also qualify for Employment Insurance (EI) sickness benefits, which are administered federally. These benefits are available to employees who are unable to work due to medical reasons and meet the eligibility criteria. EI sickness benefits provide 55% of average weekly earnings, up to 695 CAD per week, for a maximum of 26 weeks. To qualify, employees typically need 600 insured hours worked in the 52 weeks prior to illness and must submit a medical certificate. More information can be found on the Government of Canada website.

Maternity Leave

In Canada, Maternity and Parental leave rights are set out through the nationwide Employment Insurance (EI) program, which is applied across all provinces and entitles eligible mothers to take up to 15 weeks of maternity leave with income support. For Federally regulated employees and industries, up to 17 weeks maternity leave can be taken. During this period, eligible employees will receive maternity benefits equal to 55% of their earnings, up to a maximum of 695 CAD per week. To receive this benefit, workers must provide a certificate from a healthcare practitioner confirming the pregnancy. For further guidance and eligibility criteria, refer to the Government of Canada website.

In addition to EI, Quebec sets its own employment standards under the Labour Standards Act, which entitles eligible employees to up to 18 continuous weeks of unpaid maternity leave. To qualify, an employee must have worked for the same employer for at least seven consecutive months before the expected date of delivery. Maternity leave can begin as of the 16th week before the expected date of birth, and it must end no later than 20 weeks after the birth. Employees must provide their employer with at least 3 weeks’ written notice of their intended leave start date and a medical certificate confirming the pregnancy and expected due date. More information and eligibility criteria can be found on the Quebec Government website.

Following the completion of the maternity benefits, mothers can go on to take Parental Leave.

Paternity Leave

Upon the adoption or birth of a child, a leave of 5 continuous weeks without pay is provided for the parent who did not give birth. They are entitled to this leave regardless of the length of their uninterrupted service. The leave may begin as of the week of the child’s birth and end no later than 78 weeks after the child’s birth.  The notice of leave must be given to their employer at least 3 weeks before they go on leave.

Following the completion of the paternity benefits, additional leave can be taken through Parental Leave.

Five Days of Leave

Both parents (biological or adoptive) may be absent from work for 5 days, the first 2 days of which are paid, for the birth of a child, the adoption of a child or the termination of a pregnancy that occurs as of the 20th week. This right to be absent from work applies to all workers, regardless of the length of their uninterrupted service. It must be taken within 15 days of the child’s birth, the child’s arrival in the home or the termination of pregnancy.

The parent is not entitled to the 5-day leave if they have already started Maternity or Paternity leave. Additional information can be found on the Quebec Government website.

Parental Leave

In Canada, Parental leave benefits are available to parents of a newborn or newly adopted child through the nationwide Employment Insurance (EI) program, which is applied across all provinces. Parents can choose between 2 options:

  • Standard parental benefits – up to 40 weeks leave shared between parents, but one parent cannot take more than 35 weeks, with pay equal to 55% of their earnings, up to a maximum of 695 CAD per week. This leave must be used within 52 weeks of the birth.
  • Extended parental benefits – up to 69 weeks leave can be shared between parents, but one parent cannot take more than 61 weeks, with pay equal to 33% of their earnings, up to a maximum of 417 CAD per week. This leave must be used within 78 weeks of the birth.

The Parental leave period does not have to be taken consecutively but must be within the above mentioned timeframe. Further information and eligibility criteria can be found on the Government of Canada website.

In addition to EI, each individual province can set their own set of employment standards that determine the full available leave entitlements for parents. In Quebec, eligible employees are entitled to up to 65 weeks of unpaid parental leave to care for a newborn or newly adopted child. Employees must provide at least 3 weeks’ written notice before starting parental leave and must also give 3 weeks’ written notice before returning to work. Additional information can be found on the Quebec Government website.

Other Leave

Bereavement Leave

This leave is in place for workers whose family member has died. There are two support systems; the system that applies depends on if the worker falls under the provincial sector or the federally regulated sector:

  • Workers regulated under the Quebec Labour Standards Act are entitled to 5 days of leave (including 2 days with pay) for the death or preparation of the funeral. This right to be absent from work applies to all workers, regardless of the length of their uninterrupted service.
  • Federally regulated workers under the Canada Labour Code are entitled to up to 10 days of job protected bereavement leave following the death of an immediate family member. This leave can be taken within 6 weeks of the death. The first 3 days of this leave will be paid if the worker has completed 3 months of continuous employment.

Family Leave

In Quebec, employees have the right to take up to 10 days leave per calendar year to fulfil family or parental obligations. For workers with at least 3 months of uninterrupted service, the first 2 days of absence are with pay. Unused days do not carryover into the next calendar year. These days may not be taken for personal reasons e.g. a worker cannot take these days to go and sign papers at a notary’s office.

Extended Absence is in place for the following reasons:

  • up to 16 weeks over a 12-month period if the worker must stay with a family member or a person for whom they are a natural caregiver and who has a serious illness or had a serious accident.
  • up to 27 weeks over a 12-month period if the person who is seriously ill has a life-threatening illness.
  • up to 36 weeks over a12-month period if their minor child is seriously ill or had a serious accident. The absence may be extended for a total of 104 weeks if their minor child has a serious, life-threatening illness, as attested by a medical certificate.

Additional leave for family matters might be available under the Employment Insurance regulations, based on eligibility.

Wedding Leave

Under the Quebec Labour Standards Act, on the day of a workers’ own wedding or civil union, they may be absent from work with pay.

A worker may also be absent from work for one day without pay, for the wedding or civil union of their child, a parent, a sibling or their spouse’s child.

Workers must advise their employer of their absence at least one week in advance.

Additional Leave

Under the Canada Labour Code and Quebec Labour Standards Act other types of leave are also regulated including Reservist Leave, Jury Leave, Suicide of a Loved One Leave and Disappearance of a Child Leave.

Vacation Days
Public Holidays
Highest
Lowest

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Termination

Termination Process

The termination process in Quebec is based on termination reasons and process outlined in the Labour Standards Act. Employers can terminate a worker’s employment when they no longer need their services for reasons including economic reasons including financial difficulties, organizational reasons including restructuring of the company or reorganization of duties, and technical reasons, such as technological innovations.

If 10 or more workers are dismissed over a period of 2 consecutive months, this might be considered as a Collective Dismissal, which might require additional process, notice and payout.

When terminating, employers must give written notice. If this is not correctly provided, the worker could be entitled to an monetary indemnity equal to the regular wages the worker would have earned between the date on which the notice should have been provided and the termination of their employment.

Salary payment interval / date Final payment on termination Bank account payment requirement
Wages must be paid at regular intervals of no more than 16 days, except for managers and certain employees where pay can be monthly. At the time of termination or at the next regular pay date, the employer must pay all sums due (wages, overtime, vacation indemnity) to the employee. Wages may be paid by bank transfer, cheque (cashable within 2 working days), or cash in sealed envelope. If pay-day falls on a statutory holiday and payment is by bank transfer, different timing may apply.

Notice Period

The length of required written notice is based on the employee’s length of uninterrupted service:

  • 3 months to 1 year of service = 1 week notice
  • 1 to 5 years of service = 2 weeks notice
  • 5 to 10 years of service = 4 weeks notice
  • 10 years or more service = 8 weeks notice

Severance Pay

In Quebec, there is no statutory severance payout.

Probation Period

The first 3 months of employment is generally considered to be a probationary period. During this time, no notice is required to be given upon termination.

Minimal Statutory Termination Costs

Notice Periods:
Yes, after 3 months in all provinces EXCEPT in:
Manitoba- after 30 days
New Brunswick & Prince Edward Island- after 6 months
Saskatchewan- after 13 weeks

see below for each individual province

Severance
Statutory severance pay is not universal across all of Canada. Only federal employees with 12+ months of employment and those in Ontario with 5 years of employment are owed.
However Canada is extremely worker friendly and common law does provide precedent for workers who are terminated without cause to receive severance pay

PTO unused vacation time must be paid out

Quebec
After 3 months: 1 week
1-5 years: 2 weeks

Common Benefits

  • Cell phone/internet allowance
  • Car allowance
  • Supplementary healthcare (which typically cover costs of items or care that are not covered by Canada’s universal healthcare system such as prescription drugs or vision ware).
  • Dental plan
  • Private pension/Retirement Savings plan contribution (2-6 % of base salary is common)

Immigration

The Government of Canada operates the Temporary Foreign Worker Program to enable foreign citizens to apply to work in Canada for a set period. The program covers all job roles and knowledge levels, and it can be used when a qualified Canadian citizen or permanent resident is not available or suitable for the role.
Federal (Government of Canada) immigration programs and provincial programs (Government of Quebec) are available in Quebec.

VAT

General

The standard rate of VAT in Quebec, Canada, is 5.00%. However, Quebec also has a provincial sales tax (PST) which is a retail sales tax that applies when taxable goods or services are purchased, acquired, or brought into Quebec for use in Quebec, and this rate is 9.98%, resulting in a combined GST and QST rate of 14.98%

Stay up to date on payroll & employment law changes

Version History

May 1, 2022
The standard minimum wage in Quebec is now 14.25 CAD per hour.
October 7, 2021
Employment insurance changes from 1.65% to 1.68%
3 weeks of paid time off after 5 years of employment instead of 3
Maternity leave changed to 18 weeks instead of 20
January 1, 2021
Maternity leave has increased from 18 to 20 weeks.
Parental leave has increased from 52 weeks to 78 weeks.
Quebec Pension Plan contributions for the employee and employer contribution rates increased to 5.90%.
May 1, 2021
The minimum wage increased from 12.50 CAD per hour to 13.10 CAD per hour.
February 20, 2022
The standard minimum wage increased to 13.50 CAD per hour.
Payroll contributions and personal income tax rates have been updated.
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Questions & Answers

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Yuliya
Yuliya
4 years ago

If the payroll cycle is semi-monthly, how to calculate the day rate for the unused vacation compensation in case of termination? Should we use full salary and divide on number of business days in the full month, or half salary and divide on the number of business days in the half month?

Emily Kuhnert
Emily Kuhnert
4 years ago
Reply to  Yuliya

Hi Yuliya, can you please clarify your question? Are you asking how to calculate unused annual leave or how to calculate a partial months’ salary?

Yuliya
Yuliya
4 years ago
Reply to  Emily Kuhnert

Hi Emily. Thank you for clarification. How to calculate unused annual leave payment for terminated associate?

Medi
Medi
4 years ago

If the original company is based in US and I work from Canada(QC) with Papaya services, does it count as Canadian work experience for me? (for getting Canadian Permanent Resident (PR) there’s a need of a year of Canadian work experience)

Erez Greenberg
Erez Greenberg
4 years ago
Reply to  Medi

Yes, since you are an EoR worker and there is an entity in Canada.

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Payroll and Benefits Guide in Canada – Quebec

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Payroll and Benefits Guide
in Canada – Quebec

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

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Public Holidays Calendar

Canada – Quebec
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CSV
PDF
ICS
Date  Day of Week  Holiday Name (English)  Holiday Notes 
Jan 1  Thursday  New Year’s Day  Statutory Holiday 
Jan 2  Friday  Day after New Year’s Day  Statutory Holiday (unique to Quebec) 
Apr 3 or Apr 6  Friday or Monday  Good Friday or Easter Monday  Employer’s choice—only one of these two days is a paid statutory holiday. 
May 18  Monday  National Patriots’ Day  Always the Monday preceding May 25. Replaces Victoria Day. 
Jun 24  Wednesday  Quebec National Holiday  Mandatory holiday, governed by its own Act. 
Jul 1  Wednesday  Canada Day  Statutory Holiday. 
Sep 7  Monday  Labour Day  Always the first Monday in September. 
Oct 12  Monday  Thanksgiving Day  Always the second Monday in October. 
Dec 25  Friday  Christmas Day  Statutory Holiday.