This document has been updated on October 24th, 2017 and reflects the state of the Law, including draft amendments, at that date.

Health Services Fund – Quebec


The employer HSF contribution rate is generally 2.5% for employers whose total worldwide annual payroll for all associated corporations is $1M or less. In 2017, the rate is reduced to 1.55% for employers in the primary and manufacturing sectors.18  When the payroll exceeds $1M, the rate increases gradually up to 4.26% when the payroll reaches $5M.

18 The contribution rate for employers whose payroll is less than $1M is progressively reduced as of 2017 to reacht 1.45% (primary and manufacturing sectors) or 2% (other activity sectors) in 2021. 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.


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 2016 contribution
$0 – $14,545
$14,546 – $29,545
$29,546 – $135,570
$135,571 and more
No contribution
1% of income > $14,545
$150 plus 1% of income > $50,570

19 Indexed annually.