RREGOP contributions 2026: rate, exemption, calculation and real examples

Contribution Rate 2026

Employee contribution rate: 9.09%

This rate applies to pensionable salary exceeding the exemption of 25% of the Maximum Pensionable Earnings (MPE). The MPE in 2026 is $71,300. The exemption is therefore 25% x $71,300 = $17,825.

Formula: Annual contribution = 9.09% x (Salary - $17,825)

If the salary is below $17,825, the employee does not contribute to RREGOP. In practice, this situation is rare for full-time public sector employees. For part-time employees, the exemption is adjusted pro rata based on work time.

Why the 25% MPE Exemption?

The exemption exists because RREGOP is designed to complement QPP, not duplicate it. QPP already covers a portion of income up to the MPE. The 25% MPE exemption represents approximately the portion of income already covered by QPP.

This integration between RREGOP and QPP also explains why the RREGOP pension is reduced at age 65 through QPP coordination. During the career, the employee contributes less to RREGOP (thanks to the exemption). At retirement, the RREGOP pension includes a supplement (the "bridge") that is removed at 65 when QPP is presumed to begin.

Contribution Table 2026 by Salary Level

Here are the annual RREGOP contributions for different salary levels in 2026:

Salary: $50,000

Contributory salary: $50,000 - $17,825 = $32,175. Annual contribution: 9.09% x $32,175 = $2,925. Per biweekly pay: approximately $112. The contribution represents 5.85% of total gross salary.

Salary: $70,000

Contributory salary: $70,000 - $17,825 = $52,175. Annual contribution: 9.09% x $52,175 = $4,743. Per biweekly pay: approximately $182. The contribution represents 6.78% of total gross salary.

Salary: $90,000

Contributory salary: $90,000 - $17,825 = $72,175. Annual contribution: 9.09% x $72,175 = $6,561. Per biweekly pay: approximately $252. The contribution represents 7.29% of total gross salary.

Salary: $110,000

Contributory salary: $110,000 - $17,825 = $92,175. Annual contribution: 9.09% x $92,175 = $8,379. Per biweekly pay: approximately $322. The contribution represents 7.62% of total gross salary. As salary increases, the proportion devoted to RREGOP contributions rises because the fixed exemption represents a smaller share of the salary.

Tax Deductibility of Contributions

Employee RREGOP contributions are fully deductible from taxable income. This deduction is applied automatically at source by the employer, meaning the employee pays less tax on each pay.

For an employee earning $80,000 at a combined marginal rate of 41%, the RREGOP contribution of $5,652 generates a tax saving of $2,317 (41% x $5,652). The net cost of the contribution is therefore $3,335, or approximately $128 per biweekly pay. This net cost is what should be considered when evaluating the real impact of contributions on disposable income.

RREGOP contributions also reduce RRSP contribution room. The Pension Adjustment (PA) reported on the T4 slip accounts for both employer and employee RREGOP contributions and reduces the following year's RRSP limit accordingly. RREGOP members therefore generally have lower RRSP room than private sector workers at equivalent income levels.

Employer Contribution

RREGOP is a jointly funded plan. The employer (Quebec government) also contributes to the plan, but its share is not calculated the same way as in a private defined contribution plan. The employer contribution does not appear on the employee's pay stub.

For advisors, it is important to understand that RREGOP is a defined benefit plan: the pension is guaranteed by the formula regardless of investment returns. The investment risk is borne by the plan (and ultimately the government), not by the employee. This is a major advantage compared to defined contribution plans in the private sector.

Impact on Financial Planning

For advisors, RREGOP contributions have several implications for the client's overall planning. Disposable income is reduced by contributions, even after the tax deduction. RRSP room is lower due to the pension adjustment. Projected retirement income depends more on the RREGOP formula than on investment returns.

The advisor should therefore orient planning toward objectives that complement RREGOP: maximize the TFSA (not affected by the pension adjustment), plan for compensation of partial indexation, and use remaining RRSP room strategically (contribute at the highest marginal rate, withdraw at the lowest rate).

Frequently Asked Questions