Hire and pay 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.


Canadian Dollar (CAD)



Official Language

French and English

Payroll Cycle


Onboard, pay and manage employees in Canada with Deel.

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.

Deel lets you hire employees in Canada quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.

Download the Guide

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 - ManuLife (Mandatory - Bronze)
  • Pension - Wealthsimple (optional)
  • Healthcare - ManuLife (Optional - Silver and Gold plans)

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:



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.

Income (Portion)

Tax Rate

Taxable income up to $53,359, plus


Taxable income over $53,359 up to $106,717, plus


Taxable income over $106,717 up to $165,430, plus


Taxable income over $165,430 up to $235,675, plus


Taxable income over $235,675, plus


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

Payroll Cost

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

Mandatory Registered Retirement Savings Plan (Pension Plan): Employers must offer this plan but may choose to opt out of the employer contributions


  • US $10/month if employees make a contribution or hold a balance in the plan
  • US $15/month if employers make a contribution

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

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

Entitled sick time may vary per province.

Termination Requirements

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

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

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.

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.

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.

Paid Time Off

The vacation allowance varies per province in Canada. As a general policy in Canada Deel requires employers to give full-time employees a minimum of 15 vacation days per year.
 Part-time workers’ vacation accrual is prorated from the standard 15 vacation days per year.
 These are the minimum legal requirements, but common practice for employers in Canada is to give 21 vacation 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


Employees cannot sign the contract on their start date. Onboarding takes 1 business day after the SOW is signed. 

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’s name
  • Employee’s address
  • Job role
  • Job description (with measurable duties)
  • 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).

Download the complete guide to hiring in Canada

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Hiring in Canada, hassle-free

With Deel, your business can easily hire employees in Canada with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Canada and 150+ countries.

Group (8)

Starting at 599 USD

Management fee

Group (9)


Estimate Employer Cost

*of employee salary

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

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