Canadian Dollar (CAD)
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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 - 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:
- Newfoundland and Labrador
- Prince Edward Island
- Nova Scotia
- New Brunswick
- British Columbia
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.
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
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
If the Optional Pension Plan is offered to employees, the following monthly fees will apply:
- Service fee for the Optional Pension Plan: USD 10
- Additional service fee for Employer Contribution to the employee's Optional Pension Plan (if applicable): USD 15
Overtime Pay & Maximum Hours
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.
|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.
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
- 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
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
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
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
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.
Estimate Employer Cost
*of employee salary