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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

$54,233.87

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

Canada Map

Local Universities

The top local universities in Canada are as follows:

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

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
Canada Talentsource

Talent Sourcing Tips

Top Local Job Boards

RobertHalf, CareerBuilder, Indeed, LinkedIn

Number of LinkedIn users

22,100,000

Top Recruitment Agencies

TM8 Recruitment, Aerotek

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

Holiday Date in 2024 Observance
New Year’s Day January 1, Monday National
Islander Day February 19, Monday PEI
Louis Riel Day February 19, Monday MB
Heritage Day February 19, Monday NS
Family Day February 19, Monday BC, AB, SK, ON, NB
St. Patrick’s Day March 17, Sunday Not a stat holiday
Good Friday March 29, Friday National except QC
Easter Monday April 1, Monday QC
Victoria Day May 20, Monday National except NS, NL
Aboriginal Day June 21, Friday NWT
St. Jean Baptiste Day June 24, Monday QC
Canada Day July 1, Monday National
Civic Holiday August 5, Monday AB, BC, SK, ON, NB, NU
Labour Day September 2, Monday National
National Day for Truth and Reconciliation September 30, Monday National, federally regulated workplaces only
Thanksgiving October 14, Monday National except NS, NL
Remembrance Day November 11, Monday National except MB, ON, QC, NS
Christmas Day December 25, Wednesday National
Boxing Day December 26, Thursday ON

Employee Leaves:

Type of Leave Duration Mandatory
Annual Leave 14 days Yes
Sick Leave 5 days Yes
Maternity Leave 17 weeks Yes

Payroll

Payroll 1

Payroll Cycle

Payroll frequency followed in the top Canadian provinces:

Payroll 2

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.

Payroll 3

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:

  1. Retirement pension
  2. Disability benefits
  3. Survivors’ benefits.

To know more about the contributions, check here.

Employee Income Tax

Federal Income tax on employees (except for Quebec):

Taxable Income (CAD)
Income Tax Rates
0 – 15%
CAD 7,530 + 20.5%
CAD 17,820 + 26%
CAD 32,180 + 29%
Above
CAD 51,344 + 33%

 

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).

Province / territory Taxable income with corresponding Rates
Newfoundland/ Labrador
  • Taxable income up to CAD 39,147 or less – 8.7%
  • Between CAD 39,147 and CAD 78,294 – 14.5%
  • Between CAD 78,294 and CAD 139,780 – 15.8%
  • Between CAD 139,780 and CAD 195,693 – 17.8%
  • Between CAD 195,693 and CAD 250,000 – 19.8%
  • Between CAD 250,000 and CAD 500,000 – 20.8%
  • Between CAD 500,000 and CAD 1000,000 – 21.3%
  • Taxable income above CAD 1,000,000 – 21.8%
Prince Edward Island
  • Taxable income up to CAD 31,984 or less – 9.8%
  • Between CAD 31,984 and CAD 63,969 – 13.8%
  • Above CAD 63,969 – 16.7%
Nova Scotia
  • Taxable income CAD 29,590 or less – 8.79%
  • Between CAD 29,590 and CAD 59,180 – 14.95%
  • Between CAD 59,180 and CAD 93,000 – 16.67%
  • Between CAD 93,000 and CAD 150,000 – 17.5%
  • Above CAD 150,000 – 21%
New Brunswick
  • Taxable income CAD 44,887 or less – 9.4%
  • Between CAD 44,887 and CAD 89,775 – 14.82%
  • Between CAD 89,775 and CAD 145,955 – 16.52%
  • Between CAD 145,955 and CAD 166,280 – 17.84%
  • Above CAD 166,280 – 20.3%
Quebec
  • Taxable income CAD 46,295 or less – 15%
  • Between CAD 46,295 and CAD 92,580 – 20%
  • Between CAD 92,580 and  CAD 112,655 – 24%
  • Above CAD 112,655 – 25.75%
Ontario
  • Taxable income CAD 46,226 or less – 5.05%
  • Between CAD 46,226 and CAD 92,454 – 9.15%
  • Between CAD 92,454 and CAD 150,000 – 11.16%
  • Between CAD 150,000 and CAD 220,000 – 12.16
  • Above CAD 220,000 – 13.16%
Manitoba
  • Taxable income CAD 34,431 or less – 10.8%
  • Between CAD 34,431 and CAD 74,416 – 12.75%
  • Above CAD 74,416 – 17.4%
Saskatchewan
  • Taxable income CAD 46,773 or less – 10.5%
  • Between CAD 46,773 and CAD 133,638 – 12.5%
  • Above CAD 133,638 – 14.5%
Alberta
  • Taxable income CAD 131,220 or less – 10%
  • Between CAD 131,220 and CAD 157,464 – 12%
  • Between CAD 157,464 and CAD 209,952 – 13%
  • Between CAD 209,952 and CAD 314,928 – 14%
  • Above CAD 314,928 – 15%
British Columbia
  • Taxable income CAD 43,070 or less – 5.06%
  • Between CAD 43,070 and CAD 86,141 – 7.7%
  • Between CAD 86,141 and CAD 98,901 – 10.5%
  • Between CAD 98,901 and CAD 120,094 – 12.29%
  • Between CAD 120,094 and CAD 162,832 – 14.7%
  • Between CAD 162,832 and CAD 227,091 – 16.8%
  • Above CAD 227,091 – 20.5%
Yukon
  • Taxable income CAD 50,197 or less – 6.4%
  • Between CAD 50,197 and CAD 100,392 – 9%
  • Between CAD 100,392 and CAD 155,625 – 10.9%
  • Between CAD 155,625 and CAD 500,000 –  12.8%
  • Above CAD 500,000 – 15%
Northwest Territories
  • Taxable income CAD 45,462 or less – 5.9%
  • Between CAD 45,462 and CAD 90,927 – 8.6%
  • Between CAD 90,927 and CAD 147,826 – 12.2%
  • Above CAD 147,826 – 14.05%
Nunavut
  • Taxable income CAD 47,862 or less – 4%
  • Between  CAD 47,862 and CAD 95,724 – 7%
  • Between  CAD 95,724 and CAD 155,625 – 9%
  • Above CAD 155,625 – 11.5%

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.

Canada Visa
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Payroll

  • Alberta – Weekly, Monthly, Bi-monthly
  • British Columbia – Bi-weekly, Monthly
  • Ontario – Monthly, Bi-monthly
  • Quebec – Hourly, Monthly, Bi-monthly

Minimum Wage

Provinces & Territories Minimum Wage
Alberta CA$15.00 per hour
British Columbia CA$15.65 per hour
Manitoba CA$13.50 per hour
New Brunswick CA$13.75 per hour
Newfoundland and Labrador CA$13.70 per hour
Northwest Territories CA$15.20 per hour
Nova Scotia CA$13.60 per hour
Nunavut CA$16.00 per hour
Ontario CA$15.50 per hour
Prince Edward Island CA$13.70 per hour
Quebec CA$14.25 per hour
Saskatchewan CA$13.00 per hour
Yukon CA$15.70 per hour

Overtime Pay

Visa & Immigration