Hire employees in
Canada, hassle-free
Hire 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 2 days with Deel.
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Currency
Canadian Dollar (CAD)

Capital
Ottawa
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Official Language
French and English
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Payroll Cycle
Bi-Monthly
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
- Social Security
- 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:
Provinces
- Newfoundland and Labrador
- Prince Edward Island
- Nova Scotia
- New Brunswick
- Quebec
- Ontario
- Manitoba
- Saskatchewan
- Alberta
- British Columbia
Territories
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.
Gross Annual Income (CAD) | Tax Rate (%) |
---|---|
Up to 49,020 | 15% |
Between 49,020 to 98,040 | 20.5% |
Between 98,040 to 151,978 | 26% |
Between 151,978 to 216,511 | 29% |
Above 216,511 | 33% |
Employer Cost
The employer cost is generally estimated at 10.17% of the employee salary.
This is the employer cost for Ontario:
- Canada Pension Plan - 5.7%
- Employment Health Tax - 1.95%
- Employment Insurance - 2.21%
- Workers' Compensation - 0.31%
- Registered Retirement Saving Plan (Optional pension plan)
Overtime Pay & Maximum Hours
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
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.
Sick Leave
Termination Requirements
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
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
Onboarding
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 name
- Role
- Start date
- Compensation
- Vacation
- Benefits
- Termination
Probation Period
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.
599 USD
Management fee
10.17%
Estimate Employer Cost
*of employee salary
Want to learn the cost of hiring an employee in Canada?
View our Employee Cost CalculatorHelp your team get a working visa in Canada
Expand your hiring reach by enabling employees to work from Canada. We handle the entire visa process in-house, taking the burden off your HR team
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