Country file

What it costs an employer to hire in Canada

This figure is the statutory employer cost for Canada only; it does not include an employer of record's own service fee, which providers price separately. Which countries a given provider actually covers is confirmed provider by provider, not implied by its appearing on this page.

Every contribution line shows the source used and the date checked. We prefer primary statutory sources. When a statutory page could not be reliably retrieved, we label the line as secondary and name the national payroll reference used. The figures are for 2026.

Model assumptions: Full-year covered employment with one employer outside Quebec; CPP age, exemption allocation and other coverage conditions still apply. Standard EI is used, not a reduced employer premium. Provincial charges, workers compensation and benefits are excluded. Annual line amounts are rounded to cents; this is not a pay-period payroll calculation.

A mid salary of C$95,000

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Published EOR fee on top of this employer cost

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The whole budget for one hire in Canada, the fee and this employer cost side by side: EOR fee plus employer cost in Canada.

A senior salary of C$190,000

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Where the percentage changes

The formula

Each contribution uses its own documented earnings base and limits. The generic annual percentage formula is not a universal payroll rule. Brazil's worked assumptions include a thirteenth salary and a separate one-third vacation premium, with ordinary contributions and FGTS on covered remuneration. The total-gross option includes both salary additions. The Philippines model calculates twelve monthly capped contributions and fixed EC only for its supported constant high-pay scenario. Lower or irregular pay requires monthly payroll; no unsupported estimate is shown.

Each ceiling above applies only to its own line, which is why the employer percentage for Canada is not the same at both salaries. Employer contribution ceilings, country by country lists where every ceiling on this site sits.

Time off, extra pay and leaving

Federal minimums under the Canada Labour Code, which cover roughly a tenth of workers: two weeks' vacation under five years, rising to three and four weeks with tenure. Provincial minimums vary and are generally similar or lower.

No statutory 13th month federally.

For federally regulated employers, statutory severance is the greater of two days' wages per completed year of service or five days' wages (section 235, Canada Labour Code). Provinces differ.

What the percentage hides

Outside Quebec, base CPP uses a CAD 3,500 annual basic exemption and a CAD 74,600 upper limit. CPP2 applies only between CAD 74,600 and CAD 85,000. Standard EI uses the employee rate of 1.63% multiplied by 1.4 (2.282% before display rounding) up to CAD 68,900.

Provincial payroll and health levies come on top. Ontario's Employer Health Tax reaches 1.95% of payroll above a one million dollar exemption for eligible private employers with payroll under five million.

Quebec runs QPP and QPIP instead of CPP and the federal EI split. The rates are close but not identical.

Items requiring payroll or quote confirmation, not established by any figure above: the Ontario EHT figures on ontario.ca (the page could not be retrieved).

One recorded change to the data on this page is listed with the old value, the date and the reason in what changed.

Using an employer of record in Canada

The modeled total includes salary payments and employer contributions. An employer of record adds its own fee on top, and that fee is a flat monthly amount rather than a percentage, so it weighs far more on a junior salary than a senior one. The published prices are here, and the calculator will add one to the figures on this page.