Section 12 – Social Programs and Benefits

Health Services Fund – Quebec


The employer HSF contribution rate is generally 1.65%16 for employers whose total worldwide annual payroll for all associated corporations is $1M or less. The rate is reduced to 1.25% for employers in the primary and manufacturing sectors17. When the payroll exceeds $1M, the rate increases gradually up to 4.26% when the payroll reaches $6M in 2020. The payroll threshold for application of the 4.26% rate will be increased to $6.5M in 2021 and $7M as of 202218.

16 Since 2020 (1.70% in 2019).
17 Employers in the natural and applied sciences sectors may benefit from relief until 2020 with respect to the increase in payroll attributable to the hiring of specialized employees.
18 Threshold indexed annually as of 2023.


Every individual, other than a trust, resident in Quebec has to pay an HSF contribution. All of the individual’s income (i.e. business income earned in Quebec, pension income, property income and capital gains) is subject to the contribution except, among others, employment income, taxable support payments received, the grossed-up portion of dividends received from taxable Canadian corporations as well as any OAS benefits. Certain deductions can reduce the amount subject to the contribution. The contribution must be included in the calculation of instalments to be paid by individuals.

Income subject to contribution19 2020 contribution
$0 – $15,170
$15,170 – $30,170
$30,170 – $137,745
$137,746 and more
No contribution
1% of income > $15,170
$150 plus 1% of income > $52,745

19 Indexed annually.
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