2018 Real Wage (With Employer Contributions)

Here is the actual cost of an employee’s salary paid at the minimum wage in 2018 vs 2010 (source: Emploi-Québec).

NoFee / Permit Name2010 Costs2010 Total2018 Costs2018 TotalDifference
1Minimum Wage$9.50/hour on May 1st 2010$9.50$12.00/hour on May 1st 2018$12,00+ 26.3%
2Commission des Normes du Travail: Contribution Rate0.08% of gross salary$0.00760.07% of gross salary$0.0084+ 10.5 %
4Régime des Rentes: Contribution Rate4.950%$0.4705.4% of gross salary$0.648+ 37.9%
7Régime québécois d'assurance parentale: Contribution Rate0.767% of gross salary$0.0730.767% of gross salary$0.092+ 26%
9Commission Santé & Sécurité au travail: General Contribution Rate (convenience store)2.170% of gross salary$0.2061.77% of gross salary$0.2124+ 7.4%
11Unemployment Insurance (AE)1.36% of gross salary$0.1231.30% of gross salary$0.156+ 26.8%
12Fonds des services de santé: Minimum Contributions2.70% if payroll expenditures are less than $1M$0.2572.30% if payroll expenditures are less than $1M$0.276+ 7.4%
13Vacancy Pay: Contribution Rate4% (-5 years), 6% (5 years+)$0.384% (-5 years), 6% (5 years+)$0.45+ 18.4%
14Fond de dével. et de compétences de la main-d'oeuvre1% if payroll expenditures are more than $1M$01% if payroll expenditures are more than $2M$0
TOTAL GROSS SALARY$11.02/hour$13.84/hour+25.6%
TOTAL EMPLOYER CONTRIBUTIONS$1.52/hour$1.84/hour+21.1%
TOTAL % EMPLOYER CONTRIBUTIONS16.0%15.33%- 4.2%

In short:

  • From May 1, 2010 to May 1, 2018, the all-inclusive hourly minimum wage went from $ 11.02 to $ 13.84, an increase of 25.6%;
  • This means that labor costs have increased by an average of 2.95% per year, while Quebec is growing at an average rate of 1.6% per year;
  • For the same period, according to the Institut de la Statistique du Québec, inflation would have increased by only 1.46% per year on average since 2010;
  • Thus: the growth rate of labor costs in Quebec since 2010 is on average 85% higher than inflation and that, year after year, an increase that convenience stores have no choice but to absorb in reductions of expenditure or increases in income.

Among the payroll taxes that increased the most are:

  • The minimum wage, culprit # 1 of the increases: it rose from $ 9.50 to $ 12.00, or 26.3% increase, or 2.9% per year (1.6% the rate of inflation);
  • The contribution rate to the Québec Pension Plan: increase of 37.9%;
  • Even though the contribution rate to the Employment Insurance went down, the weekly contribution increased by 26.8%.