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Although Quebec is in a challenging financial situation, Réseau FADOQ believes that the government should have gradually increased the eligibility age for the career extension tax credit in its economic update rather than raising it from 60 to 65 years old starting next year.
The removal of this incentive for individuals aged 60 to 64 could influence their willingness to return to or remain in the workforce.
“Many of our members eligible for this measure tell us that this tax credit plays a role in their decision to work. We understand Quebec’s budgetary situation. However, Quebec businesses rely on experienced workers, and we must ensure their employment rate does not decline,” explains Gisèle Tassé-Goodman, president of Réseau FADOQ.
In addition, this change will impact the finances of low-income workers aged 60 to 64, for whom this credit made a significant difference in their personal budgets.
Nonetheless, we support the changes to the tax credit that target lower-income workers aged 65 and over, as well as the increase in the maximum assistance, which will rise from $1,540 to $1,750.
This tax credit is part of a set of measures designed to encourage experienced workers to continue their careers. To some extent, this credit has contributed to reducing the employment rate gap between Quebec and the rest of Canada among those aged 60 and older.
At Réseau FADOQ, we have emphasized that experienced workers are precious for the labor market. They represent a reliable workforce whose presence facilitates knowledge transfer and helps mitigate labor shortages in many sectors. Intergenerational diversity promotes exchanges between generations, which is beneficial for our society.
