Temporary HSF Contribution Holiday for Agriculture, Forestry & Fishing Employers (2026–2027)

What this two-year exemption means for your business and your payroll

The Government of Québec has introduced a temporary exemption from employer contributions to the Health Services Fund (HSF) for organizations operating in the agriculture, forestry, and fishing sectors. This measure, announced by Revenu Québec on December 1, 2025, provides targeted financial relief to industries that form the foundation of our food supply, natural resource development, and rural economies.

At PayEvo, we want to ensure employers understand how this exemption works, who qualifies, and how your payroll will be affected over the 2026–2027 period.

What Is Changing?

For the 2026 and 2027 calendar years, eligible employers will benefit from two major forms of relief:

A 0% HSF Contribution Rate

You will not owe any contributions to the Health Services Fund for wages paid in 2026 and 2027.

No HSF Remittances Required

Since the applicable rate is 0%, qualifying employers do not have to make periodic HSF remittances during these years.

This temporary measure is designed to ease cost pressures in industries facing workforce challenges, cyclical operations, and increasing operational expenses.

Who Qualifies for the Exemption?

Revenu Québec outlines specific criteria for determining whether an employer is eligible for the HSF holiday:

More than 50% of your total payroll must relate to activities within eligible NAICS industry codes.

This payroll proportion test must be met for each of the exempt years (2026 and 2027).

Eligible sectors include a defined list of agriculture, forestry, and fishing industries such as:

• Crop production
• Animal production and aquaculture
• Forestry and logging
• Fishing, hunting, and trapping
• Support activities for agriculture and forestry
• Certain first-stage wood transformation activities (e.g., sawmills, pulp mills)

The official Revenu Québec announcement provides a detailed list of qualifying NAICS codes to help employers confirm eligibility.

Who Qualifies?

To qualify, an employer must determine:

1. Total payroll for the year

All wages and salaries paid.

2. Payroll associated with eligible activities

This includes employees directly involved in agricultural, forestry, or fishing work, as well as supporting activities tied to those NAICS classifications.

3. Percentage threshold requirement

If more than 50% of total payroll is attributable to eligible activities, the employer qualifies for that year’s exemption.

This test is applied independently for 2026 and 2027, meaning eligibility could change from one year to the next.

What This Means for Your Payroll

The exemption has a few key implications for employers and payroll processing:

1. Reduced Payroll Costs

The HSF is a meaningful employer expense. A 0% rate produces immediate savings, especially for businesses with large or seasonal workforces.

2. Simplified Payroll Administration

With no HSF remittances required during these two years, payroll filings become more efficient.

3. Annual Eligibility Review

Because the exemption applies year-by-year, employers must monitor their payroll structure to ensure they continue to meet the >50% threshold.

4. Adjustments to Year-End Reporting

Payroll summaries will reflect the exemption, although employers must still comply with all other filing obligations.

How PayEvo Supports This Change

PayEvo ensures your payroll stays compliant and up to date with every regulatory change—including this two-year HSF holiday.

Here’s how we support you:

• Ongoing monitoring of provincial payroll changes and impacts
• Client support for questions about eligibility, reporting, and compliance. You can reach out to us at support@paymentevolution.com.

Our goal is to ensure your payroll reflects every available benefit, accurately, effortlessly, and on time.

Why This Matters

The agriculture, forestry, and fishing sectors play a vital role in Québec’s economy and communities. This temporary HSF exemption recognizes the unique challenges these industries face and provides:

• Immediate cost relief
• Improved financial flexibility
• Support for workforce retention
• Greater operational stability during periods of economic pressure

For many employers, especially seasonal ones, these savings can be significant.

Official Source

Full details:
Revenu Québec: Temporary exemption from paying Health Services Fund contributions for the agriculture, forestry and fishing sectors