Talent Wiki - Canada
Your quick guide on talent and labor compliance norms in Canada
Capital
Ottawa
Currency
Canadian Dollar (CAD)
Languages
English, French
Payroll Frequency
Hourly, Weekly, Bi-weekly, Monthly, or Bi-Monthly (Based on Province)
GDP per Capita
$56,794.02
Employer Tax
Varies on Provinces & Territories
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 as of 2022.
Major economic hubs:
Toronto, Ottawa, British Columbia, Brampton
Skills in demand:
Web developer, Software engineers, Human resource, Customer service, Sales
Local Universities
The top local universities in Canada are as follows:
University of Toronto
Ranking
Local: 1
World: 23
University of British Columbia
Ranking
Local: 2
World: 26
McGill University
Ranking
Local: 3
World: 57
University of Waterloo
Ranking
Local: 4
World: 71
Simon Fraser University
Ranking
Local: 5
World: 74
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 |
Talent Sourcing Tips
Top Local Job Boards
RobertHalf, CareerBuilder, Indeed, LinkedIn
Number of LinkedIn users
21,070,000
Top Recruitment Agencies
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 is from one to six months.
Public and Provincial Holidays
| Date | Name | Type | Details |
| 1 Jan | New Year’s Day | Statutory Holiday | |
| 2 Jan | Day off for New Year’s Day | Statutory Holiday | |
| 7 Apr | Good Friday | Statutory Holiday | |
| 10 Apr | Easter Monday | Statutory Holiday | Northwest Territories, Nunavut, Quebec |
| 22 May | Victoria Day | Statutory Holiday | All except New Brunswick, Nova Scotia, Prince Edward Island, Quebec |
| 1 Jul | Canada Day | Statutory Holiday | |
| 4 Sep | Labour Day | Statutory Holiday | |
| 30 Sep | National Day for Truth and Reconciliation | Federal Employees Holiday | |
| 9 Oct | Thanksgiving Day | Statutory Holiday | All except New Brunswick, Nova Scotia, Prince Edward Island |
| 11 Nov | Remembrance Day | Statutory Holiday | All except Manitoba, Nova Scotia, Ontario, Quebec |
| 25 Dec | Christmas Day | Statutory Holiday | |
| 26 Dec | Boxing Day | Statutory Holiday | Newfoundland and Labrador, Northwest Territories, Nunavut, Ontario |
Employee Leaves
| Type of Leave | Duration | Mandatory |
| Annual Leave | 14 days | Yes |
| Sick Leave | 5 days | Yes |
| Maternity Leave | 17 weeks | Yes |
Payroll
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.
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.
Bonus
13th Month Pay
No statutory mention of 13th-month pay in Canada.
Employee Benefits
- Canada Pension Plan
- Parental leaves
- Employment insurance
- Health insurance
Taxes
Employer Payroll Tax
| Payroll Category | Tax Contribution % |
| Canada Pension Plan (except for Quebec)* | 5.95% |
| Quebec Pension Plan** (Retirement Pension) | 6.4% |
| 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) | 6.4% |
| Employment Insurance (except for Quebec) | 1.58% |
| Quebec Employment Insurance | 1.27% |
Note:
**Quebec Pension Plan (QPP): This plan provides the employee from Quebec with three different benefits:
- Retirement pension
- Disability benefits
- Survivors’ benefits.
To know more about the contributions, check here.
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 50,197 CAD | 0 | 15% | |
| 50,197 to 100,392 CAD | 7,530 CAD | 20.5% | |
| 100,392 to 155,625 CAD | 17,820 CAD | 26% | |
| 155,625 to 221,708 CAD | 32,180 CAD | 29% | |
| 221,708 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).
| Province / territory | Taxable income with corresponding Rates |
| Newfoundland/ Labrador |
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| Prince Edward Island |
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| Nova Scotia |
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| New Brunswick |
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| Quebec |
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| Ontario |
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| Manitoba |
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| Saskatchewan |
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| Alberta |
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| British Columbia |
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| Yukon |
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| Northwest Territories |
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| Nunavut |
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VAT
The standard GST rate in Canada is 5% while PST (provincial sales tax) rate varies in different provinces.
Offboarding & Termination
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.
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.
