Get Live Quote 
Effective January 1, 2026, Québec Pension Plan (QPP) maximum pensionable earnings increased to CAD 74,800 (from CAD 71,300), and the additional earnings cap (YAMPE) rose to CAD 85,000. The QPP1 contribution rate decreased slightly from 6.40% to 6.30%, but the higher earnings ceiling results in increased maximum annual contributions: CAD 4,479.30 per employee and employer (up from CAD 4,339.20). The QPP2 rate remains 4.00% on earnings above the YMPE, with maximum contributions of CAD 416 per year. The basic exemption remains CAD 3,500. These changes apply to all 2026 payrolls in Québec.
Québec Pension Plan earnings ceiling rises to CAD 74,800, increasing maximum contributions for 2026
Effective January 1, 2026, the Québec Pension Plan (QPP) maximum pensionable earnings increased to CAD 74,800 from CAD 71,300 in 2025. Despite a slight decrease in the QPP1 contribution rate from 6.40% to 6.30%, the higher earnings ceiling results in increased maximum annual contributions of CAD 4,479.30 per employee and employer, up from CAD 4,339.20 in 2025.
Who is affected
All employers with employees working in Québec must apply these updated contribution rates and earnings thresholds to payrolls dated in 2026, regardless of pay period end date. The changes affect both employees and employers equally, as QPP contributions are split 50/50 between the two parties. Self-employed individuals operating in Québec are also subject to these updated limits.
What's changing
The Year's Maximum Pensionable Earnings (YMPE) and Year's Additional Maximum Pensionable Earnings (YAMPE) have both increased for 2026, while the QPP1 base contribution rate decreased slightly. The basic exemption remains unchanged at CAD 3,500.
| Component | 2026 | 2025 |
|---|---|---|
| QPP1 (Base Plan) | ||
| Contribution rate (employee + employer) | 6.30% each | 6.40% each |
| Maximum pensionable earnings (YMPE) | CAD 74,800 | CAD 71,300 |
| Basic exemption | CAD 3,500 | CAD 3,500 |
| Maximum contribution (employee + employer) | CAD 4,479.30 each | CAD 4,339.20 each |
| QPP2 (Additional Plan) | ||
| Contribution rate (employee + employer) | 4.00% each | 4.00% each |
| Additional earnings ceiling (YAMPE) | CAD 85,000 | CAD 81,200 |
| Maximum contribution (employee + employer) | CAD 416 each | CAD 396 each |
The QPP2 additional plan applies a 4.00% rate on earnings above the YMPE, up to the YAMPE limit. For 2026, this means QPP2 applies to earnings between CAD 74,800 and CAD 85,000, creating a maximum additional contribution band of CAD 10,200.
What NEO partners and clients should do
- Update payroll systems by January 1, 2026 to reflect the new YMPE of CAD 74,800, YAMPE of CAD 85,000, and QPP1 rate of 6.30%.
- Verify contribution calculations for employees who transfer between Québec and other Canadian provinces during 2026, as year-to-date QPP contributions require specific formula adjustments using updated rate ratios.
- Apply strict rounding rules aligned with Revenu Québec guidance: round final contribution amounts to the nearest CAD 0.01 and treat any negative formula result as CAD 0.00.
- Monitor contribution limits throughout the year, noting that contributions restart if an employee changes employers, regardless of whether maximum limits were reached with the previous employer.
