How to calculate your billing hourly rate in construction (Quebec, 2026)

What is the billing hourly rate formula?

The billing hourly rate covers the full cost of a billed hour, plus your margin. Five steps are enough:

Why isn't the billed rate the same as the wage?

Because the wage is only part of what a sold hour costs:

• Employer contributions: contributions you pay on top of wages (table below).
• Time paid but not sold: vacation, statutory holidays, travel, waiting for materials, training, callbacks.
• Overhead: everything that keeps the company running without being billed directly.
• Margin: what is left after all costs, to absorb the unexpected and grow the company.

Which employer contributions to add in Quebec in 2026?

Here are the employer contributions for 2026, based on the official pages of Revenu Québec, the Canada Revenue Agency and the CNESST.

QPP and employment insurance: the 6.30% QPP (Quebec Pension Plan) rate combines a 5.30% base contribution and a 1% first additional contribution; the employer's employment insurance premium is 1.4 times the employee's (1.30%).

HSF: for payroll between $1M and $7.8M, the Health Services Fund rate is 1.2662 + (0.3838 × payroll ÷ 1,000,000)%; at $7.8M and above, it is 4.26%. The 1.65% rate applies to employers other than those in the primary and manufacturing sectors (NAICS codes 11, 21 and 31 to 33) and the public sector. Since construction is not one of those sectors, the general rate should apply; confirm with Revenu Québec for your company.

CNESST: in the 2026 Rate Table, the general rates of the construction units (80040 to 80250) range from $2.04 to $7.88 per $100 of insurable wages, for example $7.88 for roofing work, $6.04 for carpentry and joinery and $3.13 for electrical work. Your actual rate appears in your classification decision; it also depends on your pricing method (unit rate, personalized or retrospective rate, depending on company size). For 2027, the CNESST announces an average rate of $1.71 per $100.

Vacation and statutory holidays (Act respecting labour standards): vacation pay of 4% of gross wages (less than 3 years of continuous service) or 6% (3 years or more), and 8 paid statutory holidays, each equal to 1/20 of the wages earned during the 4 complete pay weeks before the week of the holiday. These are paid but non-billable hours. Benefits you offer (group insurance, group RRSP, training) and other contributions depending on the size of your payroll come on top: they are not included here. Special rates or reductions may also apply depending on your situation (for example for employment insurance): confirm with the agencies concerned.

What does a worked example of the calculation look like?

Fictional example. These numbers are made up to illustrate the method; they represent neither an average nor a market rate. Assumptions: employee paid $30.00/h for 2,080 hours per year (40 h × 52 weeks, paid vacation and statutory holidays included); company with a payroll of $1M or less; fictional CNESST rate of $5.00 per $100; 1,500 billable hours per employee; fictional overhead of $90,000 spread over 4,500 billable hours (3 employees); target margin of 15% of price.

In this fictional example, the pre-tax rate is about 2.7 times the wage. With a 15% markup instead of a 15% margin, you would get $78.05: a gap of $1.80 on every billed hour. Replace each assumption with your own data.

How do you estimate your billable hours?

Measure them: for a few months, record paid hours, then separate the hours sold to clients from travel, waiting, training, administration and callbacks. This proportion varies from one company to another: the 1,500 h in the example is an assumption, not a standard. Timesheets by project make this calculation more reliable.

What if my employees fall under the CCQ?

The principle is the same, but the cost in step 1 changes. According to the CCQ (Commission de la construction du Québec), the employer pays the CCQ monthly indemnities equal to 13% of wages earned (6% for annual leave, 5.5% for statutory holidays, 1.5% for sick leave), and the collective agreement provides for other fringe benefits. Wage rates depend on the trade and sector: see our CCQ 2026 guide and the CCQ rate calculator.

Which tools can you use to calculate and apply your rate?

The true cost of an employee calculator estimates the cost per hour and per year; the margin calculator turns your costs into a selling price. To apply the rate, our article on writing a construction quote explains how to present the price. In SubmitX, quotes are drafted by AI and approved by you, GST and QST are automatic and payroll for CCQ employees is calculated from timesheets. A Free plan exists; the Starter and Pro plans can be tried for 7 days with no credit card.

Frequently asked questions

What hourly rate should I bill in construction?

There is no standard rate: it depends on your real cost, your overhead, your billable hours and your target margin. Calculate it with the formula in this article rather than copying a competitor's rate.

Do employer contributions change every year?

Yes. Revenu Québec, the Canada Revenue Agency and the CNESST publish the rates and ceilings every year. In 2026, for example, the QPP rate is 6.30% and the maximum pensionable earnings are $74,600.

Are GST and QST added to the hourly rate?

The rate calculated in this article is before taxes. If you are registered for GST and QST, you add 5% and 9.975% to the price billed to the client. See the GST/QST calculator.

What margin should I target on the hourly rate?

There is no standard margin: it depends on your risks, your workload and your market. Test several margins with the margin calculator to see their effect on the selling price.

Sources

Official pages consulted on October 13, 2026 (most of them in French). Contribution rates are reviewed every year: check them before running payroll or preparing a quote. This is not tax or legal advice.

• Revenu Québec, "Main changes for 2026": QPP, QPIP, HSF, ceiling of the labour standards contribution
• Revenu Québec, "Contribution related to labour standards": 0.06% rate
• Revenu Québec, "Total payroll" (HSF): primary and manufacturing sectors, NAICS codes 11, 21 and 31 to 33
• Canada Revenue Agency, "EI premium rates and maximums": 2026 rate, ceiling and employer premium, Quebec
• Employment and Social Development Canada, "Maximum insurable earnings for 2026": $68,900; rate of $1.30 per $100 in Quebec
• CNESST, "Average premium rate": $1.54 per $100 in 2026
• CNESST, "Premium rates": 2027 average rate, pricing methods, classification decision
• CNESST, "2026 Rate Table": general rates of the construction units (80040 to 80250)
• CNESST, "Maximum annual insurable earnings": $103,000 in 2026
• CNESST, "Annual vacation": 4% or 6% indemnity
• CNESST, "Statutory holidays": 8 paid statutory holidays, 1/20 indemnity
• CCQ, "Vacation pay": 13% indemnities (6%, 5.5% and 1.5%)

Last checked: October 13, 2026.