Enter the annual salary to see your employee's take-home pay and your actual cost in just a few seconds.
The gross annual salary you wish to pay your employee.
Please enter the employee's gross annual or hourly wage and your company's industry.
The tool automatically adds RRQ, AE, RQAP, FSS, and CNESST based on the 2026 rates.
Employer costs, employee deductions, net pay, and payroll tax rates as a percentage of pay.
In Quebec, hiring an employee generally costs 12% to 18% more than the advertised gross salary. This difference stems from the mandatory contributions that the employer must pay in addition to the salary: pension plan, employment insurance, parental insurance, health services fund, and CNESST. Understanding these costs is essential for budgeting for a new hire, setting compensation, and avoiding surprises during annual tax filings.
Quebec employers must contribute to the RRQ (5.40% base rate plus an additional 1.00% up to $73,200), to EI (1.834% up to $66,600), to the RQAP (0.692% up to $98,000), the FSS (1.25% to 4.26% depending on payroll) and the CNESST (rate based on industry, average 1.69%). These five contributions are remitted via DAS (payroll deductions) to Revenu Québec, which then distributes them to the relevant agencies.
Two contribution rates depend on the company's profile. The FSS ranges from 1.25% (SMEs in the primary and manufacturing sectors with a payroll under $1 million) to 4.26% (over $7.8 million). The CNESST rate varies by classification unit: 0.16% for office work, 1.00% to 1.50% for retail trade, and 4% to 8% for construction. A construction company with a large payroll may therefore pay 8% to 10% more in payroll taxes than a financial services SME.
| Membership fee | Employer contribution rate for 2026 | Ceiling |
|---|---|---|
| RRQ Basic + Additional | 6,40 % | $73,200 MGA |
| Additional RRQ 2 (second installment) | 4,00 % | $73,200 to $83,100 |
| Employment Insurance (Quebec) | 1,834 % | 66 600 $ |
| PIP | 0,692 % | 98 000 $ |
| FSS (SMEs, other sectors, up to $1 million) | 1,65 % | No individual cap |
| FSS (large companies, over $7.8 million) | 4,26 % | No individual cap |
| CNESST (weighted average) | 1,69 % | ~$99,000 (variable) |
| Typical total for SMEs | 12% to 18% | Depending on the profile |
Sources: Retraite Québec, ESDC, RQAP, Revenu Québec, CNESST (2026 rates).
In Quebec in 2026, an employee costs 12% to 18% more than their gross salary. For a salary of $60,000, payroll expenses total $6,800 to $9,500, bringing the total cost to between $66,800 and $69,500. Added to this are employee benefits and indirect costs.
Five mandatory contributions: RRQ (6.40% up to $73,200), EI (1.834% up to $66,600), QPIP (0.692% up to $98,000), FSS (1.25% to 4.26% depending on payroll), CNESST (rate varies by industry, average 1.69%).
The basic employer rate is 5.40% and the additional rate is 1.00%, for a total of 6.40% on earnings up to $73,200 (MGA). A second rate of 4.00% applies to earnings between $73,200 and $83,100.
The CNESST premium is fully paid by the employer and varies depending on the industry and the company’s experience. The average rate is 1.69% in 2026, ranging from 0.16% (office) to over 8% (construction). The maximum insurable amount is approximately $99,000.
The FSS (Health Services Fund) is a Quebec employer contribution. 2026 rates: 1.25% for SMEs in the primary and manufacturing sectors with payrolls under $1 million, 1.65% for other SMEs, and up to 4.26% for large companies with payrolls exceeding $7.8 million.
Payroll deductions (withheld at source) are deducted from the employee’s gross pay: income tax, employee RRQ, employee EI, and employee QPIP. Employer contributions are paid separately by the employer: employer RRQ, employer EI, employer QPIP, FSS, and CNESST.
Yes, the QPIP is mandatory for all employers and self-employed individuals in Quebec. In 2026: employer rate 0.692%, employee rate 0.494%, self-employed rate 0.878%, contribution ceiling $98,000.
Bankeo connects Quebec SMEs with CPA accountants and specialists in payroll, HR, DAS, T4, and employer reporting. Our service is free. We understand your team and your payroll, and we connect you with accountants who can handle your payroll from start to finish.
What the law requires to be included on every pay stub in Quebec.
Read the article →Payroll tax strategies.
Read the article →Tax differences and employment statuses.
Read the article →Find an accountant who specializes in payroll for your small business.
Read the article →Bankeo connects Quebec SMEs with accountants who specialize in payroll, DAS, and employer reporting. This service is free for business owners.
Find the perfect accountant for me
