Quebec Pension Plan (QPP) 2024-2025: Everything You Need to Know

The Quebec Pension Plan (QPP) is a public pension plan providing Quebec workers with financial security during retirement, or if they’re unable to work due to disability or caregiving responsibilities. Understanding how the QPP works and recent changes in 2024 and 2025 can help you plan effectively for the future.

Who Must Contribute to the QPP?

All workers in Quebec aged 18 and older earning over $3,500 per year must contribute to the QPP. Contributions are automatically deducted from your paycheck, with your employer matching your contribution.

QPP Contribution Rates for 2024 and 2025

QPP contributions are calculated based on your earnings between $3,500 (basic exemption) and the maximum pensionable earnings (YMPE). Here are the details:

  • Total contribution rate: 12.8% (split evenly between employee and employer, each paying 6.4%).
  • Basic Exemption: $3,500 (unchanged).
  • Maximum Pensionable Earnings (YMPE):
    • 2024: $68,500
    • 2025: $71,300

Second-Tier Contributions

Higher-income earners contribute an additional 4% (employee and employer each pay 4%) on earnings between the YMPE and a higher earnings limit, called the Year’s Additional Maximum Pensionable Earnings (YAMPE):

  • 2024 YAMPE: $73,200
  • 2025 YAMPE: $81,200

How Much Will I Contribute?

  • 2024 Maximum:
    • Base contributions: $4,160 (employee/employer each)
    • Additional contributions: Up to $188 (employee/employer each)
  • 2025 Maximum:
    • Base contributions: $4,339.20 (employee/employer each)
    • Additional contributions: Up to $396 (employee/employer each)

Changes from 2024 to 2025

  • The main earnings limit increased from $68,500 to $71,300 in 2025.
  • The second-tier earnings limit rose from $73,200 to $81,200 in 2025, increasing contributions for higher-income earners.

How QPP Benefits You in Retirement

QPP isn’t just another tax. It directly contributes to your retirement income, aiming to replace about 33% of your pre-retirement earnings if you contribute consistently throughout your working life.

Special Situations to Consider

  • Multiple Jobs: If you have multiple jobs, each employer deducts QPP contributions separately. Excess contributions due to multiple jobs are refunded when you file your taxes.
  • Self-Employed Individuals: Self-employed workers pay both employee and employer portions (12.8%) of QPP contributions but receive tax deductions and credits to offset costs.
  • Older Workers (65+): You can choose to stop contributing after age 65 if you are already receiving QPP benefits, or continue contributing up to age 72 to increase your pension.

FAQ: Quebec Pension Plan (QPP)

1. Why did my QPP contributions increase in 2025?

The earnings limit (YMPE) increased, meaning more of your earnings are subject to contributions.

2. Can I opt-out of QPP?

No, QPP contributions are mandatory for all eligible workers aged 18 and older, except for certain workers aged 65 and over who already receive a QPP pension.

3. What happens if I overpay QPP?

Excess contributions due to multiple employers are refunded when you file your annual tax return.

4. How do QPP enhancements benefit me?

Recent enhancements mean you’ll receive a higher retirement pension, eventually replacing up to one-third of your average earnings.

5. How do I check my QPP contributions?

You can view your QPP contributions and estimated pension benefits by accessing your Statement of Participation through the Retraite Québec website.

Understanding these QPP details can help you better plan your financial future, ensuring you’re well-prepared for retirement and other life events.