Good to know
Local Currency: Canadian Dollar (CAD)
Minimum Salary: the federal minimum wage is $15.55 per hour (as of April 1, 2022)
Minimum wages vary from province to province. If the minimum wage set by the province or territory is higher than the federal minimum wage, the provincial or territorial wage rate applies.
Salary Calculation: gross to net
Legal Working Hours:
- 8 hours per day (during a period of 24 consecutive hours)
- 40 hours per week (during the period from midnight on Saturday to midnight on the following Saturday).
The maximum number of hours of work allowed per week is 48.
Paid Leave: the amount of annual leave varies with seniority. Employees are entitled to:
- At least 2 weeks of leave per year after 1 year of continuous employment with the same employer.
- At least 3 weeks of leave per year after 5 consecutive years of employment with the same employer.
- At least 4 weeks of leave per year after 10 consecutive years of employment with the same employer.
Ready to Benefit from Canadian HR & Payroll Experts?
About Canada
Canada is a North American country that shares its borders with the United States. It is the longest bi-national land border in the world.
Canada is a great place to live. The country is on the podium of the most enjoyable countries to live in.
It is a dynamic country where the job market is very attractive. Canada has one of the highest employment rates among OECD countries. Its economy is based on important natural resources (wood, oil, minerals), international trade, software, aerospace and renewable energy.
Fun fact: Canada has more than 2 million lakes and nearly 20% of the world’s freshwater reserves.
Are you looking to settle in Canada? Do you need help with payroll or human resources management? Our Canadian payroll and HR experts will provide you with a fast and accurate service in full compliance with local legislation
The Canadian social security system (for employees)
In Canadian provinces and territories outside Quebec
In Canada, the federal government has legislative and financial influence on social matters and directly manages some programs. Other programs are managed at the provincial or municipal level. The majority of these programs are financially supported by the federal government.
Federal & provincial programs
Employment Insurance (federal program) provides protection in the event of job loss, illness, pregnancy or adoption.
Family benefits are a federal program administered by the Canada Revenue Agency (CRA).
Pensions are provided by two federal programs:
Worker’s compensation is provided at both the provincial and federal levels. The Federal Workers’ Compensation Service (FWCS) of the Labour Program administers the Government Employees Compensation Act (GECA). In partnership with provincial workers’ compensation boards, the Labour Program is responsible for employee compensation claims.
The governments of the 10 provinces and 3 territories are responsible for the delivery of health insurance programs. The federal government provides grants to help fund these plans.
British Columbia has funded health care for its residents since January 1, 2020. Premiums paid by the insured have been eliminated.
In the province of Quebec
The pension insurance funds the Quebec Retirement Plan (Retraite Québec), which is designed to protect workers and their families against loss of income due to retirement, disability or death.
The worker’s compensation insurance (CNESST) is entirely funded by employers.
The Quebec government has programs that complement employment insurance in order to neutralize the waiting period in certain circumstances.
Contributions are payable to Revenu Québec, including those for the Quebec Parental Insurance Plan (QPIP), covering maternity, paternity, parental and adoption benefits.
The minimum gross hourly wage is $13.50 in the province of Quebec as of May 1, 2021.
Social security contributions in Canada (for employees)
Social contributions in the provinces and territories of Canada excluding Quebec
Contributions as of January 1, 2022 |
|||||
| Risks | Employers | Employees | Contributory Salary | ||
| Pensions, disability, old age and survivors (CPP) | 5.70% | 5.70% | Between $3,500 and $64,900 per year | ||
| Workplace Accidents | according to the risks | – | according to the provinces | ||
| Employment Insurance (EI) | 2.212% | 1.58% | $60,300 per year | ||
Collection
As an employer or self-employed person :
- Canada Pension Plan (CPP) contributions,
- Employment Insurance (EI) contributions,
- income tax deducted from employees’ paychecks,
are to be remitted to the Canada Revenue Agency where the business is located.
Workers’ Compensation Insurance is administered at the provincial level by Commissions (list of Commissions).
Social contributions in the province of Quebec
Contributions as of January 1, 2022 |
|||||
| Risks | Employers | Employees | Annual Ceilings | ||
| Pensions (Retraite Québec) | 6.15% (1) | 6.15% (1) | Between $3,500 and $64,900 per year | ||
| Workplace Accidents (CNESST) | according to the risks | – | $88,000 | ||
| Employment Insurance (EI) | 1.68% | 1.20% | $60,300 per year | ||
| Quebec Parental Insurance Plan | 0.692% | 0.494% | $88,000 | ||
(1) Basic plan rate (5.40%) + supplementary plan rate (0.75%)
Collection
Contributions for salaried workers and self-employed workers must be paid to Revenu Québec.
Personal Income Tax
Income tax in Canada is based on the concept of tax residence. All Canadian residents are liable for income tax.
Income subject to income tax in Canada is all the taxes that are collected by the tax household, i.e:
- salaries
- property income
- income from movable property
- professional income
Income tax is paid at source by the employer on the salary paid to the taxpayer. The employer must then remit this tax to the Canada Revenue Agency.
Federal Tax Rates (2022) |
|||||
| 15% of the first $50,197 of taxable income, plus | |||||
| 20.5% on the next $50,195 of taxable income (on the portion of taxable income between $50,197 and $100,392), plus | |||||
| 26% on the next $55,233 of taxable income (on the portion of taxable income between $100,392 and $155,625), plus | |||||
| 29% on the next $66,083 of taxable income (on the portion of taxable income between $155,625 and $221,708), plus | |||||
| 33% of income over $221,708 | |||||
In addition to this rate, the province imposes a tax of between 4% and 21% of net income. Provincial and territorial tax rates for the year 2022 can be found here.
Although deducted at source, the taxpayer must still complete and file his or her income tax return by the deadline. If the withholding tax is higher than the amount of tax actually due, the taxpayer receives a refund. Otherwise, the taxpayer must pay the Revenue Agency the difference between what he or she paid and the total amount of the withholding tax for the tax year in question.
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Canada.
Our Payroll and HR services in Canada
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
HR & Payroll in Canada
HR & Payroll in Canada
Good to know
Local Currency: Canadian Dollar (CAD)
Minimum Salary: the federal minimum wage is $15.55 per hour (as of April 1, 2022)
Minimum wages vary from province to province. If the minimum wage set by the province or territory is higher than the federal minimum wage, the provincial or territorial wage rate applies.
Salary Calculation: gross to net
Legal Working Hours:
- 8 hours per day (during a period of 24 consecutive hours)
- 40 hours per week (during the period from midnight on Saturday to midnight on the following Saturday).
The maximum number of hours of work allowed per week is 48.
Paid Leave: the amount of annual leave varies with seniority. Employees are entitled to:
- At least 2 weeks of leave per year after 1 year of continuous employment with the same employer.
- At least 3 weeks of leave per year after 5 consecutive years of employment with the same employer.
- At least 4 weeks of leave per year after 10 consecutive years of employment with the same employer.
Ready to Benefit from Canadian HR & Payroll Experts?
About Canada
Canada is a North American country that shares its borders with the United States. It is the longest bi-national land border in the world.
Canada is a great place to live. The country is on the podium of the most enjoyable countries to live in.
It is a dynamic country where the job market is very attractive. Canada has one of the highest employment rates among OECD countries. Its economy is based on important natural resources (wood, oil, minerals), international trade, software, aerospace and renewable energy.
Fun fact: Canada has more than 2 million lakes and nearly 20% of the world’s freshwater reserves.
Are you looking to settle in Canada? Do you need help with payroll or human resources management? Our Canadian payroll and HR experts will provide you with a fast and accurate service in full compliance with local legislation
The Canadian social security system (for employees)
In Canadian provinces and territories outside Quebec
In Canada, the federal government has legislative and financial influence on social matters and directly manages some programs. Other programs are managed at the provincial or municipal level. The majority of these programs are financially supported by the federal government.
Federal & provincial programs
Employment Insurance (federal program) provides protection in the event of job loss, illness, pregnancy or adoption.
Family benefits are a federal program administered by the Canada Revenue Agency (CRA).
Pensions are provided by two federal programs:
Worker’s compensation is provided at both the provincial and federal levels. The Federal Workers’ Compensation Service (FWCS) of the Labour Program administers the Government Employees Compensation Act (GECA). In partnership with provincial workers’ compensation boards, the Labour Program is responsible for employee compensation claims.
The governments of the 10 provinces and 3 territories are responsible for the delivery of health insurance programs. The federal government provides grants to help fund these plans.
British Columbia has funded health care for its residents since January 1, 2020. Premiums paid by the insured have been eliminated.
In the province of Quebec
The pension insurance funds the Quebec Retirement Plan (Retraite Québec), which is designed to protect workers and their families against loss of income due to retirement, disability or death.
The worker’s compensation insurance (CNESST) is entirely funded by employers.
The Quebec government has programs that complement employment insurance in order to neutralize the waiting period in certain circumstances.
Contributions are payable to Revenu Québec, including those for the Quebec Parental Insurance Plan (QPIP), covering maternity, paternity, parental and adoption benefits.
The minimum gross hourly wage is $13.50 in the province of Quebec as of May 1, 2021.
Social security contributions in Canada (for employees)
Social contributions in the provinces and territories of Canada excluding Quebec
Contributions as of January 1, 2022 |
|||||
| Risks | Employers | Employees | Contributory Salary | ||
| Pensions, disability, old age and survivors (CPP) | 5.70% | 5.70% | Between $3,500 and $64,900 per year | ||
| Workplace Accidents | according to the risks | – | according to the provinces | ||
| Employment Insurance (EI) | 2.212% | 1.58% | $60,300 per year | ||
Collection
As an employer or self-employed person :
- Canada Pension Plan (CPP) contributions,
- Employment Insurance (EI) contributions,
- income tax deducted from employees’ paychecks,
are to be remitted to the Canada Revenue Agency where the business is located.
Workers’ Compensation Insurance is administered at the provincial level by Commissions (list of Commissions).
Social contributions in the province of Quebec
Contributions as of January 1, 2022 |
|||||
| Risks | Employers | Employees | Annual Ceilings | ||
| Pensions (Retraite Québec) | 6.15% (1) | 6.15% (1) | Between $3,500 and $64,900 per year | ||
| Workplace Accidents (CNESST) | according to the risks | – | $88,000 | ||
| Employment Insurance (EI) | 1.68% | 1.20% | $60,300 per year | ||
| Quebec Parental Insurance Plan | 0.692% | 0.494% | $88,000 | ||
(1) Basic plan rate (5.40%) + supplementary plan rate (0.75%)
Collection
Contributions for salaried workers and self-employed workers must be paid to Revenu Québec.
Personal Income Tax
Income tax in Canada is based on the concept of tax residence. All Canadian residents are liable for income tax.
Income subject to income tax in Canada is all the taxes that are collected by the tax household, i.e:
- salaries
- property income
- income from movable property
- professional income
Income tax is paid at source by the employer on the salary paid to the taxpayer. The employer must then remit this tax to the Canada Revenue Agency.
Federal Tax Rates (2022) |
|||||
| 15% of the first $50,197 of taxable income, plus | |||||
| 20.5% on the next $50,195 of taxable income (on the portion of taxable income between $50,197 and $100,392), plus | |||||
| 26% on the next $55,233 of taxable income (on the portion of taxable income between $100,392 and $155,625), plus | |||||
| 29% on the next $66,083 of taxable income (on the portion of taxable income between $155,625 and $221,708), plus | |||||
| 33% of income over $221,708 | |||||
In addition to this rate, the province imposes a tax of between 4% and 21% of net income. Provincial and territorial tax rates for the year 2022 can be found here.
Although deducted at source, the taxpayer must still complete and file his or her income tax return by the deadline. If the withholding tax is higher than the amount of tax actually due, the taxpayer receives a refund. Otherwise, the taxpayer must pay the Revenue Agency the difference between what he or she paid and the total amount of the withholding tax for the tax year in question.
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Canada.
Our Payroll and HR services in Canada
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
Good to know
Local Currency: Canadian Dollar (CAD)
Minimum Salary: the federal minimum wage is $15.55 per hour (as of April 1, 2022)
Minimum wages vary from province to province. If the minimum wage set by the province or territory is higher than the federal minimum wage, the provincial or territorial wage rate applies.
Salary Calculation: gross to net
Legal Working Hours:
- 8 hours per day (during a period of 24 consecutive hours)
- 40 hours per week (during the period from midnight on Saturday to midnight on the following Saturday).
The maximum number of hours of work allowed per week is 48.
Paid Leave: the amount of annual leave varies with seniority. Employees are entitled to:
- At least 2 weeks of leave per year after 1 year of continuous employment with the same employer.
- At least 3 weeks of leave per year after 5 consecutive years of employment with the same employer.
- At least 4 weeks of leave per year after 10 consecutive years of employment with the same employer.
Ready to Benefit from Canadian HR & Payroll Experts?
About Canada
Canada is a North American country that shares its borders with the United States. It is the longest bi-national land border in the world.
Canada is a great place to live. The country is on the podium of the most enjoyable countries to live in.
It is a dynamic country where the job market is very attractive. Canada has one of the highest employment rates among OECD countries. Its economy is based on important natural resources (wood, oil, minerals), international trade, software, aerospace and renewable energy.
Fun fact: Canada has more than 2 million lakes and nearly 20% of the world’s freshwater reserves.
Are you looking to settle in Canada? Do you need help with payroll or human resources management? Our Canadian payroll and HR experts will provide you with a fast and accurate service in full compliance with local legislation
The Canadian social security system (for employees)
In Canadian provinces and territories outside Quebec
In Canada, the federal government has legislative and financial influence on social matters and directly manages some programs. Other programs are managed at the provincial or municipal level. The majority of these programs are financially supported by the federal government.
Federal & provincial programs
Employment Insurance (federal program) provides protection in the event of job loss, illness, pregnancy or adoption.
Family benefits are a federal program administered by the Canada Revenue Agency (CRA).
Pensions are provided by two federal programs:
Worker’s compensation is provided at both the provincial and federal levels. The Federal Workers’ Compensation Service (FWCS) of the Labour Program administers the Government Employees Compensation Act (GECA). In partnership with provincial workers’ compensation boards, the Labour Program is responsible for employee compensation claims.
The governments of the 10 provinces and 3 territories are responsible for the delivery of health insurance programs. The federal government provides grants to help fund these plans.
British Columbia has funded health care for its residents since January 1, 2020. Premiums paid by the insured have been eliminated.
In the province of Quebec
The pension insurance funds the Quebec Retirement Plan (Retraite Québec), which is designed to protect workers and their families against loss of income due to retirement, disability or death.
The worker’s compensation insurance (CNESST) is entirely funded by employers.
The Quebec government has programs that complement employment insurance in order to neutralize the waiting period in certain circumstances.
Contributions are payable to Revenu Québec, including those for the Quebec Parental Insurance Plan (QPIP), covering maternity, paternity, parental and adoption benefits.
The minimum gross hourly wage is $13.50 in the province of Quebec as of May 1, 2021.
Social security contributions in Canada (for employees)
Social contributions in the provinces and territories of Canada excluding Quebec
Contributions as of January 1, 2022 |
|||||
| Risks | Employers | Employees | Contributory Salary | ||
| Pensions, disability, old age and survivors (CPP) | 5.70% | 5.70% | Between $3,500 and $64,900 per year | ||
| Workplace Accidents | according to the risks | – | according to the provinces | ||
| Employment Insurance (EI) | 2.212% | 1.58% | $60,300 per year | ||
Collection
As an employer or self-employed person :
- Canada Pension Plan (CPP) contributions,
- Employment Insurance (EI) contributions,
- income tax deducted from employees’ paychecks,
are to be remitted to the Canada Revenue Agency where the business is located.
Workers’ Compensation Insurance is administered at the provincial level by Commissions (list of Commissions).
Social contributions in the province of Quebec
Contributions as of January 1, 2022 |
|||||
| Risks | Employers | Employees | Annual Ceilings | ||
| Pensions (Retraite Québec) | 6.15% (1) | 6.15% (1) | Between $3,500 and $64,900 per year | ||
| Workplace Accidents (CNESST) | according to the risks | – | $88,000 | ||
| Employment Insurance (EI) | 1.68% | 1.20% | $60,300 per year | ||
| Quebec Parental Insurance Plan | 0.692% | 0.494% | $88,000 | ||
(1) Basic plan rate (5.40%) + supplementary plan rate (0.75%)
Collection
Contributions for salaried workers and self-employed workers must be paid to Revenu Québec.
Personal Income Tax
Income tax in Canada is based on the concept of tax residence. All Canadian residents are liable for income tax.
Income subject to income tax in Canada is all the taxes that are collected by the tax household, i.e:
- salaries
- property income
- income from movable property
- professional income
Income tax is paid at source by the employer on the salary paid to the taxpayer. The employer must then remit this tax to the Canada Revenue Agency.
Federal Tax Rates (2022) |
|||||
| 15% of the first $50,197 of taxable income, plus | |||||
| 20.5% on the next $50,195 of taxable income (on the portion of taxable income between $50,197 and $100,392), plus | |||||
| 26% on the next $55,233 of taxable income (on the portion of taxable income between $100,392 and $155,625), plus | |||||
| 29% on the next $66,083 of taxable income (on the portion of taxable income between $155,625 and $221,708), plus | |||||
| 33% of income over $221,708 | |||||
In addition to this rate, the province imposes a tax of between 4% and 21% of net income. Provincial and territorial tax rates for the year 2022 can be found here.
Although deducted at source, the taxpayer must still complete and file his or her income tax return by the deadline. If the withholding tax is higher than the amount of tax actually due, the taxpayer receives a refund. Otherwise, the taxpayer must pay the Revenue Agency the difference between what he or she paid and the total amount of the withholding tax for the tax year in question.
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Canada.
Our Payroll and HR services in Canada
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
Sources:
Government of Canada
https://www.canada.ca/en/services/jobs/workplace/federal-labour-standards/pay-deductions.html
https://www.canada.ca/en/services/jobs/workplace/federal-labour-standards/work-hours.html#h2.01
https://www.canada.ca/en/services/jobs/workplace/federal-labour-standards/vacations-holidays.html