* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City
Ottawa
Currency

Canadian Dollar ($)

Timezone

NST/AST/EST/CST/MST/PST (GMT -3:30/-4/-5/-6/-7/-8)

Payroll
Biweekly
Employment Cost

8.23% to 16.864% (varies by province)

Annual Leave

14 days (varies by province)

In-demand Specialties*
Programming And Software Development, Engineering, Customer Service

The Ultimate Guide to Hiring Employees in Canada

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.

hiring-in-Canada-guide

Key Considerations Before Hiring In Canada

Employing in Canada requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Canada with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Canada quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

In Canada, various employment terms, such as minimum wage and probation periods, differ among provinces. It is crucial to thoroughly review and adhere to local laws governing employment contracts.

Federal and provincial laws protect Canadians from discriminatory hiring practices. Be aware of federal laws against discrimination and province-specific rules (e.g., in British Columbia, no discrimination based on unrelated criminal convictions).

The absence of a language barrier makes hiring remote workers in Canada an easy task

Canada boasts one of the best-educated workforces globally, with over half of active workers aged 25 to 64 holding degrees from tertiary education institutions.

playroll-good-to-know

Fundamental Aspects of Employment in Canada

Each region has its own set of legislation, and the interplay between federal and provincial laws adds complexity to understanding and meeting the specific requirements. The employer should also provide a contract of employment that is signed by both parties detailing:

Probationary Period in Canada

Probationary periods are common in Canada, approximately three months. While there is no statutory limit for probation, each province has established maximum allowable timelines, varying from one month to six months. In certain provinces, mandatory probationary periods may be imposed, offering employers a level of protection even when the specific probationary duration is not explicitly outlined in the employment agreement.

Working hours in Canada

The standard practice involves employees working eight hours per day, amounting to a total of 40 hours per week.

Overtime in Canada

Work conducted outside regular working hours is classified as overtime and must be compensated at a minimum rate of 150% of the standard wages. This is a widely accepted standard across most provinces and territories. However, there are variations in provincial and territorial legal standards regarding the definition of overtime and its constraints.

Navigating Key Aspects of Payroll in Canada

Canada has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January - 31 December

Fiscal Year in Canada

1 January - 31 December is the 12-month accounting period that businesses in Canada use for financial and tax reporting purposes.
Biweekly

Payroll Cycle in Canada

The payroll cycle in Canada is usually Biweekly, with employees being paid before 15th and by the end of month.
$16.65 CAD p/h

Minimum Wage in Canada

The minimum wage for employees in Canada is typically $16.65 CAD per hour, amounting to ~$2688.39 CAD per month for a typical 40 hour work week.

Minimum wages and salaries in Canada

The minimum wage in Canada differs among provinces, with a federal minimum wage currently established at CAD 16.65 per hour.

Bonus Payments in Canada

Canada does not have any legislation that mandates the provision of a 13th salary.

Comprehensive Overview of Employment Taxes in Canada

Understanding the tax obligations for both employers and employees is crucial when operating in Canada's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Canada.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 8.23% to 16.864% (varies by province) on top of the employee salary in Canada.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Canada, the typical estimation for employee payroll contributions cost is around 7.28% - 8.542% (varies by province).

Tax Rate Tax Type

Individual Payroll Tax Contributions

In Canada, employees are subject to federal taxation ranging from 15% to 33%, determined by their income bracket. Additionally, provincial taxes, which vary across the provinces, are imposed on top of these federal taxes.

Tax Rate Income Bracket

Pension in Canada

The Canada Pension Plan retirement pension is a monthly taxable benefit that serves as an income replacement for retirees aged 60 and above. To qualify, individuals must have made at least one valid contribution to the CPP, which can stem from their work in Canada or be credited from a former spouse or common-law partner. Both employees and employers in Canada and Quebec are required to contribute to the pension plan.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Canada tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Canada

When it comes to terminating employment in Canada, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

Terminating employment contracts in Canada can be complicated. Unlike the concept of at-will termination commonly found in some jurisdictions, Canadian employers do not have the same flexibility, especially once the probationary period concludes. In Canada, terminations must be based on just cause to comply with legal requirements. The reasons for termination may include:

Notice Period

According to federal employment regulations, employers are required to provide a minimum of two weeks' notice when terminating an employee, but this applies only if the employee has been in service for more than three months. It's important to note that notice periods differ across provinces and territories, ranging from one to eight weeks.. Notice period regulations do not pertain to employees under fixed-term contracts.

Severance Pay

Upon completing a minimum of twelve months of employment with an employer, individuals are entitled to severance pay equivalent to two days' pay for each year of service completed

Annual Leave Entitlements and Company Policies in Canada

The annual leave entitlement in Canada is 14 days (varies by province) for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Canada

Employees get paid for public holidays, and if a holiday falls on a weekend, it shifts to the next workday.

Holiday Date

Paid Time Off in Canada

Maternity Leave in Canada

Paternity Leave in Canada

Sick Leave in Canada

Bereavement Leave

Family Violence Leave

Parental Leave In Canada

Canada's Benefits Built Into Playroll

Competitive benefits package in Canada

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Canada's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Canada

Make your benefits package in Canada a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Pension
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in Canada

Playroll allows you to provide localized benefits for employees in Canada within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Canada create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Canada

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Canada.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!