Hire employees in

Canada, hassle-free

Hire employees in Canada, hassle-free

With Deel, your business can easily hire employees in Canada. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in Canada is 1 day with Deel.

Download the Guide

Currency

Canadian Dollar (CAD)

Capital

Ottawa

Official Language

French and English

Payroll Cycle

Bi-Monthly

Hire employees in Canada. No entity needed.

Usually, to hire in Canada, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Canada also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Canada quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.

All the necessary benefits for Canada
built right in

Deel allows you to provide localized benefits for employees in Canada within minutes. All in one manageable online dashboard.

  • Pension Fund
  • Disability Insurance
  • Healthcare - Canada Life (optional)
  • Pension - Wealthsimple (optional)

Our quickstart guide to hiring in Canada

Navigate the tabs below to learn everything you need to know about hiring an employee in Canada

Minimum Wage Requirements

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

Territories

Individual Income Tax

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.

Gross Annual Income (CAD) Tax Rate (%)
Up to 49,020 15%
Between 49,020 to 98,040 20.5%
Between 98,040 to 151,978 26%
Between 151,978 to 216,511 29%
Above 216,511 33%

Employer Cost

The employer cost is generally estimated at 10.17% of the employee salary.

This is the employer cost for Ontario:

  • Canada Pension Plan - 5.7%
  • Employment Health Tax - 1.95%
  • Employment Insurance - 2.21%
  • Workers' Compensation - 0.31%
  • Registered Retirement Saving Plan (Optional pension plan)

Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday. There are specific requirements depending on the province as well as the industry. Overtime pay is generally mandatory. Certain position types and professions are exempt from overtime requirements such as employees with managerial responsibilities. Exemptions are complex and depend upon the province where the employee is located. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 8 hours of overtime per week. For additional hours, employees are paid 150% of their salary.

Maternity Leave

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.

Paternity Leave

There is no specific paternity leave required by law separate from parental leave in Canada.

Parental Leave

In Canada, there are two options for parental leave, standard parental benefits or extended parental benefits. The CRA is responsible for paying for this leave.

 

Benefit Leave Payment (% of salary) Weekly Maximum
Standard parental Up to 40 weeks split between both parents, but one parent cannot receive more than 35 weeks of standard benefits 55% Up to 638 CAD
Extended parental Up to 69 weeks split between both parents, but one parent cannot receive more than 61 weeks of extended benefits 33% Up to 383 CAD

Parental leave can't be extended.

Sick Leave

Federally, employees are entitled to 10 days of paid sick leave a year and unlimited unpaid days. Sick leave accrues at 9.375 hours for each month in which an employee receives 75 hours of pay.

Termination Requirements

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

Notice Period

On termination, the employer has to provide a minimum notice period of 2 weeks. Province specific:

  • Alberta - 2 weeks of notice
  • Ontario - 1 month of notice
  • Quebec - 1 month of notice

Severance for Employees

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.

Paid Time Off

Both full-time and part-time employees are entitled to 2 weeks (10 working days) of paid time off (PTO) a year. Employees are paid at 4% of their gross earnings as vacation pay.

  • After 5 consecutive years of employment with the same employer, the entitlement increases to 3 weeks (15 working days) of vacation - paid at 6% of gross earnings
  • After 10 consecutive years of employment with the same employer, employees are entitled to 4 weeks (20 working days) of vacation - paid at 8% of gross earnings

PTO accrues daily. Employees must take their earned vacation within the 12 months in which they accrued it.

Province specific:

  • Alberta
    • 15 days until 3 years of employment
    • 21 days for 3 years of employment and greater
  • Quebec - 15 days
  • Ontario - 15 days

Public Holidays

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

Onboarding

Onboarding takes 1 business day. Registration in health insurance is required.

Employment Contract Details

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 name
  • Role
  • Start date
  • Compensation
  • Vacation
  • Benefits
  • Termination

Probation Period

Probation periods are not mandatory. There is no minimum probation period. The maximum probation period is 90 days (3 months).
btn_download

Download the complete guide to hiring in Canada

Simply fill out your details below to gain access to our complete guide to hiring in Canada.

Hiring in Canada, hassle-free

With Deel, your business can easily hire employees in Canada. No more worrying about local laws, complex tax systems, or managing
international payroll. Deel takes care of everything in 150+ countries.

Group (8)

599 USD

Management fee

Group (9)

10.17%

Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in Canada?

View our Employee Cost Calculator

We have a 4.9 out of 5 rating on Trustpilot

We're trusted by over 6,000 businesses all over the world. Read our reviews on Trustpilot.com.

5 Stars

Deel is the best!!

“Deel is an amazing platform! It's super intuitive and user friendly, plus it runs suuuuper smoothly!! It has great options for paying and withdrawing money, plus it helps you keep super organized with your spending. They also have great support and are super friendly with all the questions you might have :D I would definitely recommend it!!”

Manuela Echeverry
Nov 20, 2020
5 Stars

A contracting life-changer!

"This has by far the singular tool that made my contracting work amazing. It used to be that contract management and payouts was a nightmare — Deel makes everything so easy especially with its Transferwise integration. Everyone gets paid on time and kept happy. I also contacted their support a couple of times for some small questions and they’ve been nothing short of amazing. If you’re a contractor or someone who hires contractors then definitely give Deel a go."

Kix Panganiban
Dec 3, 2020
5 Stars

Great service offering!!

"The Deel platform has been super effective for my team and I and has enabled us to bring on workers globally. The platform allows us to onboard individuals seamlessly and with no issues at all. Highly recommend."

Michael US
Oct 28, 2020
5 Stars

Terrific service

"Great service, amazing customer care, terrific platform, both for the company and for the contractors/employees. Saving everyone's time and money"

Nunzio Martinello
Dec 15, 2020
5 Stars

Deel is a game-changer for distributed teams

"Deel has been instrumental in helping us both open and operate our EU operations. It's super simple to set up and implement and the support team has been world-class. I can't recommend them enough!"

Jeremie Habib
Nov 16, 2020
5 Stars

Great app with great customer service

"Great app with great customer service, with great attention to details and legal requirements. Looking forward to keep using it!"

Felipe Marote
Jan 29, 2021

Deel makes growing remote and international teams effortless. Ready to get started?

+

Countries

+

Customers

+

Legal experts

+

Currencies