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Expand your global workforce in Canada

Your guide to the employment landscape, working customs and local labor laws in

Capital

Ottawa

Currency

Canadian Dollar (CAD)

Languages

English, French

GDP per Capita

$54,233.87

Employer Tax

Varies on Provinces & Territories

Payroll Frequency

Hourly, Weekly, Bi-weekly, Monthly, or Bi-Monthly (Based on Province)

Talent overview

Canada is a highly developed country with a high ranking in the human development index among the world countries. It has a mixed-market economy and is the 8th largest economy.

Major economic hubs:

Toronto, Ottawa, British Columbia, Brampton

Skills in demand:

Web developer, Software engineers, Human resource, Customer service, Sales

Top local universities in Canada

Canada Uni1

University of Toronto

Ranking

Local: 1

World: 23

Canada Uni2

University of British Columbia

Ranking

Local: 2

World: 26

Canada Uni3

McGill University

Ranking

Local: 3

World: 57

Canada Uni4

University of Waterloo

Ranking

Local: 4

World: 71

Canada Uni5

Simon Fraser University

Ranking

Local: 5

World: 74

Top Local Job Boards

RobertHalf, CareerBuilder, Indeed, LinkedIn

Number of LinkedIn users

22,100,000

Top Recruitment Agencies

TM8 Recruitment, Aerotek

Where to find talent

Top Local Job Boards:

Number of LinkedIn users:

Top Recruitment Agencies:

Salary Data

Some of the top jobs in Canada and their annual salary are listed below:

Job Title Average Monthly Salary (CAD) Average Monthly Salary (USD)
Financial Manager 20,100 CAD 14743.35 USD
General Manager 18,300 CAD 13423.05 USD
Business Development Manager 15,900 CAD 11662.65 USD
Financial Analyst 13,300 CAD 9755.55 USD
Business Analyst 12,800 CAD 9388.80 USD
Project Manager 11,700 CAD 8581.95 USD

Employ in Canada

Employing in Canada

To nurture harmonious labor relations beneficial to employers, employees and the economy, numerous measures have been taken up by the labor program, some of which are collective bargaining, dispute prevention, and arbitration appointments. 

Employee Contract

The language of employment contracts in Canada can be English or French. An exception is the Quebec province, which makes it necessary to have the contract, particularly in French.

Probation Period

The usual probationary period followed in Canada are set by each province, ranging from 1 to 12 months.

Public and Provincial Holidays

Date Name Type
January 1 New Year’s Day National Holiday
April 18 Good Friday National Holiday
April 21 Easter Monday National Holiday
May 19 Victoria Day National Holiday
July 1 Canada Day National Holiday
September 1 Labour Day National Holiday
September 30 National Day for Truth and Reconciliation National Holiday
October 13 Thanksgiving Day National Holiday
November 11 Remembrance Day National Holiday
December 25 Christmas Day National Holiday
December 26 Boxing Day National Holiday
Date Name Local Holiday (Province)
February 17 Louis Riel Day MB
February 17 Nova Scotia Heritage Day NS
February 17 Islander Day PE
February 17 Family Day BC, AB, ON, SK, NB
February 21 Yukon Heritage Day YT
March 17 St. Patrick’s Day NL
April 20 Easter Sunday NL, NS
April 21 Easter Monday NB
April 21 St. George’s Day NL
May 19 National Patriots’ Day QC
June 21 National Indigenous Peoples Day NT, YT
June 23 June Holiday NL
June 24 St. Jean Baptiste Day QC
July 1 Memorial Day NL
July 9 Nunavut Day NU
July 14 Orangemen’s Day NL
August 4 Civic/Provincial Day NT, NU
August 4 Natal Day NS
August 4 British Columbia Day BC
August 4 New Brunswick Day NB
August 4 Terry Fox Day MB
August 4 Saskatchewan Day SK
August 4 Civic/Provincial Day ON
August 6 The Royal St John’s Regatta (Regatta Day) NL
August 15 Gold Cup Parade PE
August 18 Discovery Day YT
September 30 National Day for Truth and Reconciliation NT, YT, NU, PE, BC
October 13 Thanksgiving Day NB, NS
October 18 Healthcare Aide Day BC, MB
November 11 Remembrance Day NS
December 24 Christmas Eve NB
December 26 Boxing Day NB, NS

Employee Leaves:

Type of Leave Duration Mandatory
Annual Leave 14 days Yes
Sick Leave 10 days Yes
Maternity Leave 17 weeks Yes

Leave Compliance

Payroll in Canada

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Payroll cycle

Payroll frequency followed in the top Canadian provinces:

Read more

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Minimum wage

The minimum wage in Canada varies with provinces. Below is a list of the top provinces in Canada along with their minimum wage. Please note, these are for general workers, and there shall be exceptions in the data depending on the age of the employee ( for those under 17) and the industry related.

Read more

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Overtime pay

The standard working hours in Canada are 40 hours in a week. If an employee works overtime, they must be compensated at 1.5 times their hourly rate.

How taxes work

Employer Payroll Tax

Payroll Category Tax Contribution %
Canada Pension Plan (except for Quebec)* 5.95%
Quebec Pension Plan** (Retirement Pension) 5.4%
Employment Insurance (except for Quebec) 2.21%
Quebec Employment Insurance 1.63%

Employee Payroll Tax

Payroll Category Tax Contribution %
Canada Pension Plan* (except for Quebec) 5.95%
Quebec Pension Plan* (Retirement Pension) 5.4%
Employment Insurance (except for Quebec) 1.58%
Quebec Employment Insurance 1.27%

Note:

In 2025, if an employee earns more than $71,300, they contribute 4% of their income between $71,300 and $81,200 to the additional Quebec Pension Plan (QPP), with the employer matching this contribution.

Employee Income Tax

Federal Income tax on employees (except for Quebec):

Annual Taxable Income Tax on the first Amount Tax rate on excess
0 to 55,867 CAD 0 15%
55,867 – 111,733 CAD 7,530 CAD 20.5%
111,733 – 173,205 CAD 17,820 CAD 26%
173,205 – 246,752 CAD 32,180 CAD 29%
246,752 CAD and Above 51,344 CAD 33%

Quebec Personal Income Tax:

Annual Taxable Income Tax rate on excess
0 to 46,295 CAD 15%
46,296 to 92,580 CAD 20%
92,581 to 112,655 CAD 24%
Above 112,655 CAD 25.75%

Federal Income Tax In Canada:

In addition to federal income tax, an individual who resides in, or has earned income in any province or territory is subject to provincial or territorial income tax.

Note: The tax will be calculated based on the slabs the income falls under. Once tax is calculated from the first slab, the remaining income (if any) is to be calculated from the second slab of taxation, and so on(Except Quebec).

Provinces and territories Rates
Alberta 10% on the first CAD 148,269 of taxable income

12% on the income over CAD 148,269 up to CAD 177,922

13% on the income over CAD 177,922 up to CAD 237,230

14% on the income over CAD 237,230 up to CAD 355,845

15% on the amount over CAD 355,845

British Columbia 5.06% on the first CAD 47,937 of taxable income

7.7% on the income over CAD 47,937 up to CAD 95,875

10.5% on the income over CAD 95,875 up to CAD 110,076

12.29% on the income over CAD 110,076 up to CAD 133,664

14.7% on the income over CAD 133,664 up to CAD 181,232

16.8% on the income over CAD 181,232 up to CAD 252,752

20.5% on the amount over CAD 252,752

Manitoba 10.8% on the first CAD 47,000 of taxable income

12.75% on the income over CAD 47,000 up to CAD 100,000

17.4% on the amount over CAD 100,000

New Brunswick 9.4% on the first CAD 47,715 of taxable income

14.82% on the income over CAD 47,715 up to CAD 95,431

14% on the income over CAD 95,431 up to CAD 176,756

16% on the income over CAD 95,431 up to CAD 176,756

19.5% on the amount over CAD 176,756

Newfoundland and Labrador 8.7% on the first CAD 43,198 of taxable income

14.5% on the income over CAD 43,198 up to CAD 86,395

15.8% on the income over CAD 86,395 up to CAD 154,244

17.8% on the income over CAD 154,244 up to CAD 215,943

19.8% on the income over CAD 215,943 up to CAD 275,870

20.8% on the income over CAD 275,870 up to CAD 551,739

21.3% on the income over CAD 551,739 up to CAD 1,103,478

21.8% on the amount over CAD 1,103,478

Northwest Territories 5.9% on the first CAD 50,597 of taxable income

8.6% on the income over CAD 50,597 up to CAD 101,198

12.2% on the income over CAD 101,198 up to CAD 164,525

14.05% on the amount over CAD 164,525

Nova Scotia 8.79% on the first CAD 29,590 of taxable income

14.95% on the income over CAD 29,590 up to CAD 59,180

16.67% on the income over CAD 59,180 up to CAD 93,000

17.5% on the income over CAD 93,000 up to CAD 150,000

21% on the amount over CAD 150,000

Nunavut 4% on the first CAD 53,268 of taxable income

7% on the income over CAD 53,268 up to CAD 106,537

9% on the income over CAD 106,537 up to CAD 173,205

11.5% on the amount over CAD 173,205

Ontario 5.05% on the first CAD 51,446 of taxable income

9.15% on the income over CAD 51,446 up to CAD 102,894

11.16% on the income over CAD 102,894 up to CAD 150,000

12.16% on the income over CAD 150,000 up to CAD 220,000

13.16 % on the amount over CAD 220,000

Prince Edward Island 9.65% on the first CAD 32,656 of taxable income

13.63% on the income over CAD 32,656 up to CAD 64,313

16.65% on the income over CAD 64,313 up to CAD 105,000

18.00% on the income over CAD 105,000 up to CAD 140,000

18.75% on the amount over CAD 140,000

Quebec 14% on the first CAD 51,780 of taxable income

19% on more than CAD 51,780 but not more than CAD 103,545

24% on more than CAD 103,545 but not more than CAD 126,000

25.75% on the amount over CAD 126,000

Saskatchewan 10.5% on the first CAD 52,057 of taxable income

12.5% on the income over CAD 52,057 up to CAD 148,734

14.5% on the amount over CAD 148,734

Yukon 6.4% on the first CAD 55,867 of taxable income

9% on the income over CAD 55,867 up to CAD 111,733

10.9% on the income over CAD 111,733 up to CAD 173,205

12.8% on the income over CAD 173,205 up to CAD 500,000

15% on the amount over CAD 500,000

VAT

The standard GST rate in Canada is 5% while PST (provincial sales tax) rate varies in different provinces.

Bonus

13th Month Pay

No statutory mention of 13th-month pay in Canada.

Employee Benefits

  • Canada Pension Plan
  • Parental leaves
  • Employment insurance
  • Health insurance

Employee offboarding

The Canada Labor Code explains the procedure to follow while terminating the employment of an individual employee or a group termination involving 50 or more employees from a single industrial establishment who are dismissed simultaneously within four weeks. If an employee believes the dismissal as unjust, they can file a complaint alleging unjust dismissal within 90 days, from the dismissal date.

The notice period for employees on probation and permanent employees is between one to twelve weeks.

Employees have the right to collect severance pay if they complete continuous employment of at least 12 consecutive months before their layoff or dismissal. They are entitled to two days of regular wages for each full year they worked for the employer before their termination from employment. The minimum benefit is five days’ wages.

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Visa and
immigration

Both Canadian citizens and permanent residents have a right to work in Canada. In case of non-Canadian nationals, a valid work permit will usually be required.

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