Update on Québec's Economic and Financial Situation slide image

Update on Québec's Economic and Financial Situation

INFORMATION BULLETIN November 7, 2023 2023-6 Moreover, to reflect a household's ability to pay, the annual premium payable by an adult is determined on the basis of family income, from which an exemption amount based on the household's composition is subtracted.25 Since the introduction of the PPDIP, the amount of these exemptions has been adjusted annually to protect household purchasing power. In addition, to ensure the progressivity of the premium, two contribution rates are applicable. The first rate 26 applies to the first $5 000 of income covered, and the second rate, 27 to the portion exceeding $5 000. Accordingly, to maintain the principles underlying the determination of the amount of the premium payable under the PPDIP, the government will adjust, for 2023, the amount of each of the exemptions currently allowed. The following table shows the amount of each of the allowable exemptions for 2023, according to household composition. TABLE 2 Amount of the exemptions allowed for the purpose of calculating the premium payable under the PPDIP for 2023 (dollars) Household composition 1 adult, no children 1 adult, 1 child 1 adult, 2 or more children 2 adults, no children 2 adults, 1 child 2 adults, 2 or more children Amount of the exemption 18 910 30 640 34 545 30 640 34 545 38 150 25 26 27 The amount that must be applied to reduce family income makes it possible to exempt from payment of the premium adults whose family income is below a certain threshold. For 2023, the first contribution rate is 7.47%, in the case of a single person, and 3.75% in the case of a person living as a couple. For 2023, the second contribution rate is 11.22%, in the case of a single person, and 5.62%, in the case of a person living as a couple. 13
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