Hire and pay employees in Canada compliantly from day one

Easily hire employees in Canada with Deel. Deel's best-in-class Employer of Record setup allows us to handle local laws, tax and benefits, and international payroll on your behalf in 150+ countries including Canada.

Backed by local experts and built-in compliance protection, your next hire could start in as little as 1 days with Deel.

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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, and licensing, can take months.

Now you can hire employees in Canada quickly, easily and compliantly. Automate tax document collection, payroll, benefits, and more. And once your new hire is onboarded, Deel HR keeps their time off and documents in one place, so managing your team in Canada doesn't mean a separate system.

Already have an entity in Canada? Our PEO services can run payroll and compliance for your direct employees.

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Currency
 Canadian Dollar (CAD)
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Capital Ottawa
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Official language French and English
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Payroll cycle Bi-Monthly

All the necessary benefits for Canada built right in

Deel allows you to provide localised benefits for employees in Canada within minutes. All from one manageable online dashboard in a single HR platform.

  • Pension fund
  • Social security
  • Disability insurance
  • Healthcare - ManuLife (Mandatory - Bronze)
  • Pension - Wealthsimple (optional)
  • Healthcare - ManuLife (Optional - Silver and Gold plans)

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Our quick-start 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

The federal minimum wage in Canada is CAD 18.15 per hour. For employees working in provinces or territories where the general minimum wage is higher, the higher minimum wage will apply.

Minimum wage in Canada differs by province / territory.

Please reference the corresponding information for current wages:

Provinces

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.

Income (Portion)

Tax Rate

Taxable income up to $53,359, plus

15%

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

20.5%

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

26% 

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

29%

Taxable income over $235,675, plus

33%


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


Payroll Cost

The employer cost is roughly estimated between 8.25% and 14.93% depending on the 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 - 1.83%–2.30%

  • Worker's compensation - 0.18%–1.28% depending on provincial government

  • Mandatory private health insurance - CAD 124–CAD 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 employer contributions

Fees:

  • USD 10/month if employees make a contribution or hold a balance in the plan

  • USD 15/month if employers make a contribution

  • Employer liability cost - an administrative fee of 0.30% is applied to ensure ongoing worker compensation and liability coverage 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 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 at 150% of their salary.

Part-time employees may work a maximum of 30 hours per week. Employees working more than 30 hours per week are considered full-time.

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 and complex tax systems to running your payroll in Canada and 150+ other countries.

Management fee
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Starting at

$599
/month
Estimated Employer Cost
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8.55%-15.23%

of employee salary