Hire and pay employees in
Canada, hassle-free

On April 1, 2022, the federal minimum wage increased from $15.00 to $15.55 per hour. For those working in provinces or territories where the general minimum wage rate is higher, the higher rate will continue to apply.

Minimum wage in Canada differs by Province / Territory.

Please reference the corresponding information for current wages:

Provinces

• Newfoundland and Labrador
• Prince Edward Island
• Nova Scotia
• New Brunswick
• Quebec
• Ontario
• Manitoba
• Saskatchewan
• Alberta
• British Columbia

Territories

• Nunavut
• Northwest Territories
• Yukon Territory

Individuals pay federal taxes as well as provincial taxes based on where they are located. Federal individual income tax ranges from 15% to 33%. Income tax is calculated according to progressive rates.

For provincial and territorial tax rates, please see Canada Revenue Agency and Revenu Quebec.

The employer cost is roughly estimated between 8.23% and 14.63% depending on employee’s province of residence

This is the employer cost for Ontario:

• Quebec Pension Plan (Quebec only) - 6.40%
• Quebec Parental Insurance Plan (Quebec only) - 0.69%
• WSDRF - Workforce Skills Development and Recognition Fund (Quebec Only) - 1.0%
• Canada Pension Plan (excluding Quebec) - 5.95%
• Employment Health Tax - 1.95% - 4.26% depending on provincial government
• Employment Insurance - 2.28%
• Worker's Compensation - 0.18%-1.28% depending on provincial government
• Mandatory Private Health Insurance - CA$124- CA$420 
• Health Insurance admin fee - USD 15

Optional Costs: 

If the Optional Pension Plan is offered to employees, the following monthly fees will apply: 

• Service fee for the Optional Pension Plan: USD 10
• Additional service fee for Employer Contribution to the employee's Optional Pension Plan (if applicable): USD 15

Pregnant employees are entitled to 15 weeks of paid leave. The leave can start as early as 12 weeks before the expected date of birth and can end as late as 17 weeks after the actual date of birth. The employee will receive 55% of their average salary during this period, and the government will be responsible for this pay. The maximum salary payment is $638 per week.

The employee can extend leave through parental leave.

Parental leave can't be extended.

Terminations in Canada can be complex. There is no at-will termination in Canada for the employer, outside the probation period, and termination must be done for just cause.

Compliant terminations include:

• Voluntarily by the employee
• By mutual agreement
• Unilaterally by the employer based on:
  • Probation period
  • A material breach of the provisions of this agreement
  • Misconduct
  • Commission of an act of bankruptcy by the employee
  • Refusal by an employee to perform job duties as assigned in agreement
• By the expiration of the contract

Statutory minimums for employee/employer notice vary per province’s ESA (Employment Standards Act). Our contracts have been created with this in mind and have wording which is meant to protect the client should they wish to terminate an employment agreement.

In Canada, termination pay is paid when an employee is terminated without cause, and severance pay is paid when there is a mutual separation agreement or when an employee has completed a minimum of 12 consecutive months of employment.

In the federal jurisdiction, eligible employees receive the greater of 2 days' wages per year of service or 5 days' wages. Severance pay varies based on specific provinces.

To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country.  Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.

In Canada, public holidays depend on the province the employee is located in. There are both nationwide and province specific days. Nationwide public holidays include:

• New Year
• Good Friday
• Canada Day
• Labour Day
• Christmas Day

Contracts must be in English or French and can be bilingual. They must be in writing and signed by both parties.

A contract must include:

• Employee’s name
• Employee’s address
• Job role
• Job description (with measurable duties)
• Start date
• Compensation
• Vacation
• Benefits
• Termination