Compensation spending for government employees in the next fiscal year 2023-24 will increase by $4.2 billion or 7.5% compared to the current fiscal year due to salary adjustments.
Given that negotiations are still ongoing for new collective agreements with civil servants and other employees of the Quebec government, this is undoubtedly a minimal increase.
Legault government compensation spending will reach $60.5 billion.
$4 billion jump
That includes salaries and fees of $52 billion, up 8.4% from 2022-23, or $4 billion more than the current fiscal year.
Benefits and contributions to employee pension plans will reach $8.5 billion, or approximately $200 million more.
lion’s share of health
The Department of Health and Human Services is monopolizing 78.2% of the increase in compensation spending, or $3.3 billion of the $4.2 billion total.
According to the spending budget, the compensation of state employees will monopolize 52.4% of all CAQ government program spending in the next fiscal year, which will amount to US$115.5 billion next year.
Nothing for council taxes…
Bad news for property owners.
Treasury Secretary Eric Girard has no action planned to counter the sharp hikes in local taxes that hundreds of thousands of homeowners are experiencing this year after filing new local tax returns.
Households face increases in municipal tax bills ranging from 10% to 30% and even more.
… nor school taxes
And as far as school taxes are concerned, we don’t find any measures in the new budget there either, nor any indication of what will happen with the next school tax bill 2023-24, which will be sent to us next July.
Since the school tax rate is flat, this suggests that people struggling with significant municipal tax increases are also victims of a significant increase in their school tax bills.
For what ? Because the school tax is based on the municipal asset assessment. The current school tax rate is 10.24 cents per $100 assessment.
The new school tax rate for the year 2023-24 will be determined shortly by the government.
Especially from 65 years…
Beginning next year, workers age 65 and older who receive their pensions from the Quebec Pension Plan (QPP) will no longer have to contribute to the QPP as they previously did. This applies to both employees and the self-employed. Of course, those who wish to continue contributing to the QPP can do so.
It goes without saying that employers will welcome the entry into force of this measure. This also allows them to save on the QPP contribution they have to pay for the same workers.
Note: Employees age 65 and older who have not yet claimed their QPP pension must continue to contribute to the plan.
Another important measure relating to the QPP: From next year, the obligation to contribute to the QPP will be abolished for all employees who have reached the age of 73.
