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Enakamigag Anishnabewakin |
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Quebec Parental Insurance Plan
On March 1, 2005 an agreement was
signed between the Quebec and Federal Government implementing the
Quebec Parental Insurance Plan (QPIP).
Beginning on January 1, 2006 all employers, employees and self-employed
persons will be required to contribute to the QPIP. The QPIP is
designed to replace maternity and parental benefits paid under
the federal Employment Insurance program and offers a more generous,
flexible and accessible plan tailored more towards your needs.
The purpose of this plan is to respond to the changing labour market
in Quebec and takes into account the growing economic contributions
of women and also the potential labour shortage that may result from
Quebec's aging population.
The QPIP provides for payment of financial benefits to all eligible
workers who take maternity, paternity, adoption or parental leave
during which they do not receive a salary.
This plan replaces the
maternity and parental benefits under the federal Employment Insurance
Program and offers a number of advantages.
The maximum insurable income will be increased and the two-week waiting
period will be eliminated. Parents can choose between a basic or
special plan (See Table 1). Under the basic plan, the income replacement
is lower than for the special plan, but the benefits period is longer.
Self-employed workers and salaried employees alike are
eligible under the condition that all applicants have accumulated
at least $2000 in insurable income. Unlike the federal Employment
Insurance Program, this plan offers exclusive paternity benefits
for fathers.
Maternity benefits are payable exclusively to the mother, and paternity
benefits, exclusively to the father. However, the total number of
parental and adoption benefit weeks may be shared between the parents,
who can take their benefit weeks simultaneously or consecutively.
The eligibility for QPIP is under the following conditions:
Be a parent of a child born on or after January 1, 2006.
Or
Be the parent of a child adopted on or after January 1, 2006.
AND
Be a salaried employee residing in Quebec at the start of the benefit period.
Or
Type of
Benefits
Maximum number of benefit weeks
Percentage of average weekly income
Maximum number of benefit weeks
Percentage of
average weekly
income
Maternity
18
70%
15
75%
Paternity
5
70%
3
75%
Parental
7
25
70%
55%2575%
Adoption
12
25
70%
55%2875%
Basic Plan
Special Plan
Under the basic plan, for example, the number of benefit weeks can
reach 50 weeks for the mother, that is, 18 weeks of maternity benefits
at 70% and 32 weeks of parental benefits (which can be shared between
parents), with the first 7 weeks at a rate of 70% and the remaining
25 weeks at 55%.
Be a self-employed worker residing in Quebec at the start of the
benefit period and having resided in Quebec on
December 31 of the year prior to the start of the benefit period.
AND
Have ceased being paid at the same time of the birth or adoption
of a child.
AND
Be a salaried employee with insurable income of at least $2000, regardless
of the number of hours worked
Or
Be a self-employed worker with insurable income of at least $2000.
Employers will deduct their employee's contributions to the QPIP
from their salary, and must also pay an employer's share to the plan.
Human Resources Section (Continued)
With the introduction of the QPIP employees will contribute less
to the Federal Employment Insurance Program.
On September 7, 2005, the Québec government published a draft
of the Regulation respecting premium rates under the parental insurance
plan. The applicable premium rates are shown in the table below.
Employees
0,416 %
Self-employed workers
0,737 %
Employers
0,583 %
Subject to the note below, these rates will come into force on
January 1, 2006.
Self-employed workers are required to pay their contribution when
they file their 2006 income tax return. The contribution will be
calculated based on their company's net
income.
All maternity and parental benefits that were granted under the federal
Employment Insurance Program prior to January 1, 2006 will remain
the responsibility of the
Department of Human Resources and Skills Development (HRSDC). These
benefits will continue to be paid in accordance with the terms and
conditions of the federal program, even if they continue after the
Quebec Parental Insurance Plan comes into effect. Therefore, the
introduction of QPIP will have no effect on current applications.For
all new applications for maternity, parental or adoption benefits
set to begin before January 1, 2006, you must contact your local
Human Resources Center of
Canada.
Parents expecting the birth of their child between mid-December 2005
and mid-February 2006 may qualify for either the federal Employment
Insurance Program or the QPIP. In this case, they may chose under
which of the two plans they prefer to receive their benefits. However,
in the case of the Quebec plan, the birth or adoption must take place
on or after January 1, 2006. Parents in this situation are asked
to contact the Government of Canada or the Quebec government to find
out more about the options available to them.
The QPIP is an idependant insurance plan. To manage the plan, the
government has created the Conseil de gestion de l'assurance parentale,
an organization made up of representatives of unionized and non-unionized
workers, employers and government. The Conseil is responsible for
ensuring the plan's funding and sustainability.
For more information feel free to contact me at (819) 449-1225.
Information received by Revenue Quebec Quebec Parental Insurance Plan Pamphlet