Canada offers a highly skilled, bilingual workforce with employment rules set mostly at the provincial level. All-in employer cost runs around 1.12x the gross salary. Here is what to know before your first Canadian hire.
Employment standards, minimum wage, leave, and termination are governed province by province, with a separate federal regime for some industries. Written contracts are standard, and common-law 'reasonable notice' can exceed statutory minimums unless a valid contract limits it.
Employer costs are moderate, around 12%, mainly Canada Pension Plan and Employment Insurance contributions plus provincial levies such as workers' compensation and health taxes.
CPP and EI apply up to annual maximums, so higher salaries carry a smaller effective percentage. Rates and ceilings are set federally each year; Quebec runs its own QPP and QPIP.
Employees pay federal and provincial income tax plus their CPP/EI share, withheld at source. Remittance is the employer's responsibility, which under EOR means ours.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Canadian employment contract, payroll, CPP/EI, and benefits, handled. One invoice, flat $399 per month.