Tips, tip sharing and minimum wage for Quebec restaurant staff

Tips are a large part of what restaurant staff in Montreal take home, and Quebec regulates them more closely than most provinces. Who owns a tip, how a tip pool can be set up, what the minimum wage is for tipped staff and how tips are reported for tax all have specific rules. This is general information for owners and managers; check the current rules with the CNESST and Revenu Québec, or ask an employment lawyer or payroll specialist about your situation.

Who owns a tip in Quebec?

Under section 50 of Quebec's Act respecting labour standards, a tip belongs to the employee who provided the service. As the employer, you cannot keep any part of it, and you cannot impose a system for sharing tips among staff. If a customer pays a tip by card, it must still reach the employee.

Can a Quebec restaurant have a tip pool?

Yes, but the employees must set it up, not the employer. A tip-sharing agreement has to come from the staff themselves, with their free and voluntary consent. The CNESST's guidance says it applies only if a majority of the workers accept it, and that it can be verbal or written. The employer's role is limited: you cannot impose an arrangement or intervene in setting one up, but once the workers have one you must comply with it, and you can distribute the tips under it if the workers ask you to.

Common mistakes to avoid:

• Deciding the split yourself and announcing it to the team.
• Using tips to pay for breakages, mistakes or walkouts.
• Holding back card tips until the end of the month without the staff's agreement on timing.

What is the minimum wage for tipped employees in Quebec?

Quebec has a lower minimum wage for employees who usually receive tips, such as servers in restaurants. From May 1, 2026, the general minimum wage is 16.60 dollars an hour and the minimum wage for tipped employees is 13.30 dollars an hour. The CNESST sets the rates, so check its pages for the current ones. Tips belong to the employee and cannot be used to make up the base wage.

Not every restaurant worker qualifies for the tipped rate. It applies to employees who usually receive tips in the course of their work. Kitchen staff who do not receive tips, for example, are entitled to the general minimum wage.

How are tips declared to Revenu Québec?

In restaurants covered by Revenu Québec's tip rules, employees must declare all the tips they receive to their employer, usually on a Revenu Québec form or an equivalent record, each pay period. Revenu Québec's tips pages say which tips an employer adds to wages when calculating source deductions.

If the tips an employee declares are less than 8 percent of their tippable sales for the pay period, the employer must allocate the difference. A lower rate can apply if Revenu Québec has approved a request for a reduced allocation rate. Workers with no tippable sales, such as delivery people, are outside the allocation. Ask Revenu Québec or your payroll provider how it applies to your team.

How should you set up your till for tips?

Your point-of-sale system should make all of this easier:

• Record tips separately from sales, so they are not taxed as revenue.
• Track tips by employee, to support declarations and allocations.
• Show card tips clearly on end-of-shift reports, so they can be paid out as staff have agreed.
• Calculate suggested tip percentages on the amount before tax, which Quebec's consumer protection rules require on payment terminals since May 2025.

How do you talk to staff about tips?

Be clear and transparent. Explain how card tips are recorded and paid, what the declaration rules are and why they matter, and that any tip-sharing arrangement is theirs to decide. Put it in writing in your staff handbook. Confusion about tips is one of the quickest ways to lose good servers, and the CNESST takes complaints about withheld tips seriously.

Where can you get help with tips and wages in Quebec?

The CNESST publishes information on labour standards, including tips, tip sharing and the minimum wage, along with its model tip-sharing agreement. Revenu Québec publishes guidance for employers and employees on declaring and allocating tips. An accountant or payroll provider familiar with Quebec restaurants can set up your system correctly from the start.

Mosey's venue tools include staff timesheets and tips records, which can help keep a clear trail, but the rules themselves come from the CNESST and Revenu Québec.

More guides for your business:

• Running a bring your own wine restaurant in Quebec: permit basics
• Mandatory billing and QST for Quebec restaurants: what owners need to know

More in the Canadian guides for food businesses.