The Quebec Pension Plan (QPP) is the equivalent of the Canada Pension Plan (CPP) that is paid to retired seniors in the rest of Canada.
QPP payments occur monthly on the last working day.
Read on to learn about the QPP payment dates in 2023, how much you will receive in retirement pension, current contribution rates, and QPP increases.
QPP Payment Dates in 2023
The QPP payment dates in 2023 are:
|QPP Dates||QPP Dates|
|January 31, 2023||July 31, 2023|
|February 28, 2023||August 31, 2023|
|March 31, 2023||September 29, 2023|
|April 28, 2023||October 31, 2023|
|May 31, 2023||November 30, 2023|
|June 29, 2023||December 28, 2023|
QPP payments are generally sent on the last working day of the month via direct deposit to your bank account.
What is the Quebec Pension Plan (QPP)?
The Quebec Pension Plan (QPP) is one of the mainstays of retirement income in Canada, in addition to the Old Age Security pension, workplace pension plans, and personal savings.
Workers 18 years of age and older are required to make contributions to the plan during their working years, and they can begin taking a pension starting at age 60.
QPP retirement pension is expected to replace 25-33% of the average monthly salary you earned during your working years.
QPP contributors and their families may be eligible for the following benefits: Retirement pension, disability pension, death benefit, and survivor’s pension.
Quebeckers who have worked abroad may be entitled to QPP benefits if the country they worked in has a social security agreement with Québec and they are deemed to be residents of the province.
How Much QPP Will You Receive in 2023?
The amount of QPP you receive is based on the number of years during which you contributed to the plan, your average earnings, and the age at which you begin receiving the QPP pension.
The current maximum QPP benefits in 2023 are as follows:
|Pension Benefit||Pension Amount (Monthly)|
|Retirement pension at age 65 (100%)||$1,306.57|
|At age 60 (64%)||$836.20|
|At age 70 (142%)||$1,855.33|
|Additional disability amount||$558.71|
|Children of disabled QPP contributor||$89.45|
|Children of deceased QPP contributor||$264.53|
|Surviving spouse (under age 45, not disabled, & no dependents)||$649.20|
|Surviving spouse (under age 45, not disabled with dependent children)||$1,024.88|
|Surviving spouse (under age 45, disabled, with or without dependent children)||$1,064.81|
|Surviving spouse (ages 45 -64)||$1,064.81|
|Surviving spouse age 65 or over||$804.13|
As you may notice, the maximum monthly QPP payment is the same as the maximum monthly CPP payment.
Survivor’s pension in Québec is broken down into various categories based on your age and whether you have dependent children or are disabled.
When you take CPP early at age 60, you lose 36% of the maximum you would have received if you had waited until age 65.
On the other hand, if you wait until age 70 before collecting QPP, your monthly benefits increase by 42%.
You can check your “Statement of Participation in the Québec Pension Plan” online to view your contribution to the plan over the years and how much you can expect.
This retirement pension calculator also comes in handy.
QPP Contributions in 2023
In 2023, the QPP contribution rate is 6.40% for employees and 12.80% for employers and self-employed individuals.
Basically, if you work for someone else, you pay a base 5.40% contribution plus an extra 1.00%, for a total QPP contribution of 6.40% on the Yearly Maximum Pensionable Earnings (YMPE) for the year.
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The YMPE for 2023 is $66,600, and there is a basic exemption on the first $3,500 you earn per year.
Therefore, if your total income in 2023 is $66,600, you pay a 6.40% QPP contributions rate on $63,100 (i.e. $66,600 – $3,500).
Your total QPP contribution in 2023 is thus $4,038.40.
If you are self-employed, you pay to double the QPP rate at 12.8% or up to $8,076.80 per year.
How To Apply For The QPP
The QPP is not paid out automatically; you need to apply for it.
You can either complete the application process online or fill out a paper form and mail it to Retraite Québec at the address provided.
You can apply for QPP 1-3 months before the date you want to start receiving the pension.
QPP Benefits and Survivor’s Pensions
In addition to the base QPP retirement pension, you or your family may qualify for:
QPP Retirement Pension Supplement
If you continue to work and make contributions while receiving QPP, you get a pension supplement that increases your total benefit.
QPP Disability Pension
Eligible QPP contributors who have severe and permanent disabilities may qualify for disability pension while under age 65.
At age 65, they begin receiving the retirement pension.
The children of a disabled QPP contributor may also qualify for a monthly benefit.
QPP Death Benefit
A death benefit is paid to the heirs of a deceased QPP recipient or to the person or charitable organization that paid their funeral expenses.
The death benefit in 2023 is $2,500.
QPP Survivor’s Pension
The surviving spouse of a deceased QPP contributor may be eligible to receive a survivor’s pension.
The amount varies with the amount contributed by the deceased spouse, the age of surviving spouse, whether they are supporting dependent children if you already receive a retirement or disability pension, and more.
The children of a deceased contributor may also qualify for the orphan’s pension.
Is QPP Taxable?
Yes, the QPP is taxable.
QPP payments are included in your taxable income for the year, and you pay both federal and provincial income taxes (where applicable).
Federal tax rates that apply in 2023 are:
- Under $53,359: 15%
- $53,360 to $106,717: 20.50%
- $106,718 to $165,430: 26%
- $165,431 to $235,675: 29%
- Above $235,676: 33%
Note that the federal basic personal amount of $15,000 means you don’t pay federal taxes on income below $15,000 or on the first $13,521 you earn in 2023 if you are in the 33% income tax bracket.
Will QPP Payments Increase in 2023?
The QPP retirement amount is increasing in 2023 after it was indexed to reflect inflation in the past year (i.e. the Consumer Price Index).
The maximum retirement pension is $1,306.57 starting in January 2023, an increase of $53 from the $1,253 paid in 2022.
QPP contribution rates have also increased from 6.15% to 6.40% for workers and employers and from 12.30% to 12.80% for self-employed workers.
QPP Payment FAQ
Do QPP payments increase in 2023?
Yes, QPP payments will increase to $1,306.57 in 2023 after the government indexed it for inflation.
How much is QPP monthly?
If you qualify for the maximum QPP retirement pension, you receive $1,306.57 per month. If you take QPP earlier, this amount is reduced, and it is higher if you take QPP at a later age (i.e. later than the standard age of 65).
How much is OAS in 2023?
The maximum monthly OAS in 2023 is $756.32.
What is the QPP disability payment date?
QPP disability pension is paid on the same dates as the QPP retirement pension. The payment dates are on January 27, February 24, March 29, April 26, May 29, June 28, July 27, August 29, September 27, October 27, November 28, and December 20, 2023.