Question

The Québec Parental Insurance Plan is unique to the province of Québec. The plan provides benefits to residents of Québec taking maternity, paternity, adoption or parental leaves. Your organization is transferring an employee to your Québec office. This employee is not familiar with the Québec Parental Insurance Plan and has several questions about it. You have been asked to explain the differences between Employment Insurance and the Québec Parental Insurance Plan and what it means to the employee.

Answer 1

Employment Insurance Plan (EIP) is a normal insurance plan in which employer deduct a portion from the employee's pay, and contribute it towards the insurance plan, along with the employer's own contribution .The employee thus become entitled to regular benefits, sickness benefits, compassionate care benefits, etc.

Québec Parental Insurance Plan (QPIP) provides benefits specifically for maternity, paternity, parental and adoption benefits to the persons residing in Québec. The amount is contributes under this plan in addition to Employment Insurance Plan. Since, workers will be required to contribute in both, the percentage of contribution for Employment Insurance (if also covered in QPIP) is reduced, as compared to the persons not covered in QPIP.
QPIP provides with some additional benefits to the workers, such as -

• Paternity leaves for a period not exceeding five weeks,
• Removal of waiting period of 2 weeks, and
• Increase in the benefits of adoption, maternity and paternity.

EIP maternity and parental benefits will remain applicable in all other Canadian provinces and territories. QPIP are additional benefits given alongwith EIP.
Both EIP and QPIP are considered while calculating the taxable person of the person, and will be withheld at source.

For employees, opting QPIP is an better option if they are in the residence of Québec, that way they can enjoy additional benefits in addition to normal EIP.