Personal Finance

QPP Increase 2024: How Much Will Quebec Pension Plan Increase in 2024?

In the dynamic landscape of Quebec’s workforce, the Quebec Pension Plan (QPP) stands tall as a cornerstone of financial stability. This mandatory public insurance program, akin to the Canada Pension Plan (CPP), is a crucial element for individuals aged 18 and above earning more than CAD 3,500 annually from employment. In our quest for comprehensive information, we delve into the upcoming changes slated for January 1, 2024, aimed at bolstering pensioners’ financial well-being.

QPP: A Brief Evolution

The roots of the QPP trace back to its inception in 1966, mirroring the CPP. This program encompasses not only retirement pensions but also survivors’ benefits and disability payments, providing a safety net for Quebec workers and their families. The financial sustenance it offers is derived from combined contributions by both employees and employers.

QPP Increase 2024: How Much Will Quebec Pension Plan Increase in 2024?

Unveiling QPP Increase 2024

The QPP underwent a transformative enhancement on January 1, 2019, ushering in a dual-plan structure comprising the base plan and an additional plan. The QPP contribution structure evolved progressively, with the basic contribution and the first supplementary contribution dominating from 2019 to 2023. However, a significant shift occurs in 2024, with the introduction of a second supplementary contribution.

QPP Contribution Breakdown for 2024

  • Basic Contribution: Encompasses an employee’s pensionable pay exceeding CAD 3,500 up to the annual maximum pensionable earnings (AMPE) under the QPP.
  • First Supplementary Contribution: Aligned with the fraction of an employee’s pensionable pay surpassing CAD 3,500.
  • Second Supplementary Contribution (New in 2024): Calculated based on the portion of an employee’s salary or wages exceeding AMPE up to the extra AMPE under the QPP.

Noteworthy Changes in 2024

  1. Increased Replacement Rate: The replacement rate of retirement income will surge from 25% to 33.33%, enhancing financial benefits for pensioners.
  2. Extended Age for QPP Payments: The maximum age for initiating QPP payments rises from 70 to 72, fostering financial stability for workers.
  3. Flexibility for Working Pensioners: Similar to CPP, employees receiving QPP benefits while working can choose not to make payments from age 65, accruing pension credits.

New Year, New Enhancements in Canada Pension Plan (CPP)

CAD 1900/Year CPP Increase 2024 for Pensioners in Canada: Detailed Analysis

Proposed Changes for 2024

The proposed amendments in 2024 showcase a proactive approach to further fortify the QPP’s efficacy:

  • Delayed QPP Commencement Age: Increasing the age for initiating QPP payments to 72 aims to empower workers to maximize their pension benefits through delayed commencement.
  • Opt-out Provision at 65: Employees receiving QPP benefits while still working have the option to cease contributions at 65, yet continue accruing pension credits.
  • Unaffected Average Earnings: Similar to CPP, the average earnings for calculating QPP pension remain unaffected by reduced working hours beyond age 65.

Calculating Your QPP Benefits

Understanding how the QPP pension is calculated is pivotal for informed decision-making. Regardless of work status during specific periods, the average contributions made to the plan from the age of 18 until the pension application year determine the pension amount. The commencement age plays a pivotal role in determining the final benefit, with variations based on the contributor’s duration and income.


In conclusion, the QPP’s evolution and the impending changes in 2024 signal a proactive commitment to securing the financial stability of Quebec’s workforce. The intricate details of contribution structures, proposed amendments, and benefit calculations paint a comprehensive picture for those navigating the landscape of the Quebec Pension Plan.