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Your guide to the employment landscape, working customs and local labor laws in Canada.
Capital
Ottawa
Currency
Canadian Dollar (CAD)
Languages
English, French
GDP per Capita
$54,233.87
Employer Tax
Varies on Provinces & Territories
Payroll Frequency
Hourly, Weekly, Bi-weekly, Monthly, or Bi-Monthly (Based on Province)
Canada is a highly developed country with a high ranking in the human development index among the world countries. It has a mixed-market economy and is the 8th largest economy as of 2022.
Major economic hubs:
Toronto, Ottawa, British Columbia, Brampton
Skills in demand:
Local: 1
World: 23
Local: 2
World: 26
Local: 3
World: 57
Local: 4
World: 71
Local: 5
World: 74
RobertHalf, CareerBuilder, Indeed, LinkedIn
22,100,000
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
Some of the top jobs in Canada and their annual salary are listed below:
| Job Title | Average Monthly Salary (CAD) | Average Monthly Salary (USD) |
| Financial Manager | 20,100 CAD | 14743.35 USD |
| General Manager | 18,300 CAD | 13423.05 USD |
| Business Development Manager | 15,900 CAD | 11662.65 USD |
| Financial Analyst | 13,300 CAD | 9755.55 USD |
| Business Analyst | 12,800 CAD | 9388.80 USD |
| Project Manager | 11,700 CAD | 8581.95 USD |
To nurture harmonious labor relations beneficial to employers, employees and the economy, numerous measures have been taken up by the labor program, some of which are collective bargaining, dispute prevention, and arbitration appointments.
The language of employment contracts in Canada can be English or French. An exception is the Quebec province, which makes it necessary to have the contract, particularly in French.
The usual probationary period followed in Canada is from one to six months.
| Holiday | Date in 2024 | Observance |
| New Year’s Day | January 1, Monday | National |
| Islander Day | February 19, Monday | PEI |
| Louis Riel Day | February 19, Monday | MB |
| Heritage Day | February 19, Monday | NS |
| Family Day | February 19, Monday | BC, AB, SK, ON, NB |
| St. Patrick’s Day | March 17, Sunday | Not a stat holiday |
| Good Friday | March 29, Friday | National except QC |
| Easter Monday | April 1, Monday | QC |
| Victoria Day | May 20, Monday | National except NS, NL |
| Aboriginal Day | June 21, Friday | NWT |
| St. Jean Baptiste Day | June 24, Monday | QC |
| Canada Day | July 1, Monday | National |
| Civic Holiday | August 5, Monday | AB, BC, SK, ON, NB, NU |
| Labour Day | September 2, Monday | National |
| National Day for Truth and Reconciliation | September 30, Monday | National, federally regulated workplaces only |
| Thanksgiving | October 14, Monday | National except NS, NL |
| Remembrance Day | November 11, Monday | National except MB, ON, QC, NS |
| Christmas Day | December 25, Wednesday | National |
| Boxing Day | December 26, Thursday | ON |
| Type of Leave | Duration | Mandatory |
| Annual Leave | 14 days | Yes |
| Sick Leave | 5 days | Yes |
| Maternity Leave | 17 weeks | Yes |
Payroll cycle
Payroll frequency followed in the top Canadian provinces:
Read more
Minimum wage
The minimum wage in Canada varies with provinces. Below is a list of the top provinces in Canada along with their minimum wage. Please note, these are for general workers, and there shall be exceptions in the data depending on the age of the employee ( for those under 17) and the industry related.
Read more
Overtime pay
The standard working hours in Canada are 40 hours in a week. If an employee works overtime, they must be compensated at 1.5 times their hourly rate.
| Payroll Category | Tax Contribution % |
| Canada Pension Plan (except for Quebec)* | 5.95% |
| Quebec Pension Plan** (Retirement Pension) | 6.4% |
| Employment Insurance (except for Quebec) | 2.21% |
| Quebec Employment Insurance | 1.63% |
| Payroll Category | Tax Contribution % |
| Canada Pension Plan* (except for Quebec) | 5.95% |
| Quebec Pension Plan* (Retirement Pension) | 6.4% |
| Employment Insurance (except for Quebec) | 1.58% |
| Quebec Employment Insurance | 1.27% |
Note:
**Quebec Pension Plan (QPP): This plan provides the employee from Quebec with three different benefits:
To know more about the contributions, check here.
Federal Income tax on employees (except for Quebec):
Taxable Income (CAD)
Income Tax Rates
0 – 15%
CAD 7,530 + 20.5%
CAD 17,820 + 26%
CAD 32,180 + 29%
Above
CAD 51,344 + 33%
| Annual Taxable Income | Tax on the first Amount | Tax rate on excess | |
| 0 to 55,867 CAD | 0 | 15% | |
| 55,867 – 111,733 CAD | 7,530 CAD | 20.5% | |
| 111,733 – 173,205 CAD | 17,820 CAD | 26% | |
| 173,205 – 246,752 CAD | 32,180 CAD | 29% | |
| 246,752 CAD and Above | 51,344 CAD | 33% | |
Quebec Personal Income Tax:
| Annual Taxable Income | Tax rate on excess | |
| 0 to 46,295 CAD | 15% | |
| 46,296 to 92,580 CAD | 20% | |
| 92,581 to 112,655 CAD | 24% | |
| Above 112,655 CAD | 25.75% | |
Federal Income Tax In Canada:
In addition to federal income tax, an individual who resides in, or has earned income in any province or territory is subject to provincial or territorial income tax.
Note: The tax will be calculated based on the slabs the income falls under. Once tax is calculated from the first slab, the remaining income (if any) is to be calculated from the second slab of taxation, and so on(Except Quebec).
| Province / territory | Taxable income with corresponding Rates |
| Newfoundland/ Labrador |
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| Prince Edward Island |
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| Nova Scotia |
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| New Brunswick |
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| Quebec |
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| Ontario |
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| Manitoba |
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| Saskatchewan |
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| Alberta |
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| British Columbia |
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| Yukon |
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| Northwest Territories |
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| Nunavut |
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The standard GST rate in Canada is 5% while PST (provincial sales tax) rate varies in different provinces.
No statutory mention of 13th-month pay in Canada.
The Canada Labor Code explains the procedure to follow while terminating the employment of an individual employee or a group termination involving 50 or more employees from a single industrial establishment who are dismissed simultaneously within four weeks. If an employee believes the dismissal as unjust, they can file a complaint alleging unjust dismissal within 90 days, from the dismissal date.
The notice period for employees on probation and permanent employees is between one to twelve weeks.
Employees have the right to collect severance pay if they complete continuous employment of at least 12 consecutive months before their layoff or dismissal. They are entitled to two days of regular wages for each full year they worked for the employer before their termination from employment. The minimum benefit is five days’ wages.
Both Canadian citizens and permanent residents have a right to work in Canada. In case of non-Canadian nationals, a valid work permit will usually be required.
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Overtime Pay
Minimum Wage
| Provinces/Territories | Effective date | Wage rate per hour (in Canadian dollars, CAD) | Note |
| Federal | April 1, 2022 | 16.65 | The minimum wage rate applicable in regard to employees under federal jurisdiction is the general adult minimum rate of the province or territory where the employee is usually employed. |
| Alberta | June 26, 2019 | 15.00 | — |
| British Columbia | June 1, 2023 | 16.75
|
— |
| Manitoba | October 1, 2023 | 15.30 | — |
| New Brunswick | April 1, 2024 | 15.30 | — |
| Newfoundland and Labrador | October 1, 2023 | — | |
| Northwest Territories | September 1, 2023 | 16.05 | — |
| Nova Scotia | October 1, 2023 | 15.00 | The minimum wage will rise by 1% annually starting on April 1, 2024. |
| Nunavut | April 1, 2020 | 16.00 | Applies to all employees in Nunavut. |
| Ontario | October 1, 2023 | 16.55 | — |
| Prince Edward Island | April 1, 2023 | 15.00 | The minimum wage will rise to CAD 15.40 on April 1, 2024, and to CAD 16.00 on October 1, 2024. |
| Quebec | May 1, 2023 | 15.25 | — |
| Saskatchewan | October 1, 2023 | 14.00 | The minimum wage will rise to CAD 15.00 on October 1, 2024. |
| Yukon | April 1, 2023 | 16.77 | – |
Overtime Pay
Visa and Immigration
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