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Employ in Canada with ease.
Remote makes employment in Canada easy. With our localized contracts, easy invoice management, and best-in-class compliance, you can grow your global team with confidence.
Remote-Owned Local Entity
We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.
Capital city
Ottawa
Currency
Canadian dollar
($, CAD)Languages spoken
English, French
Services available:
Facts & Stats
Canada is the second-largest country in the world by land area, split into 10 provinces and three territories. With a GDP of nearly $2 trillion in 2020, Canada has a robust economy with workers in a variety of critical industries. Companies looking to hire remote workers in Canada will find plenty of talent in tech, finance, health, professional services, and a variety of other industries. Thanks to its abundant resources, Canada is also home to thriving businesses in agriculture, mining, forestry, and construction.
Capital city
Ottawa
Currency
Canadian dollar
($, CAD)Languages spoken
English, French
Population size
37,589,262
Ease of doing business
Very easy
Cost of living index
$$$
Payroll frequency
Biweekly
VAT - standard rate
5% (varies by province)
GDP - real growth rate
1.9%
Grow your team in Canada with Remote
Looking to hire employees in Canada? Companies hiring in Canada must either own a local legal entity or work with a global employment platform like Remote that can legally provide employment services in the country.
Remote can employ team members in Canada and keep you compliant at all times. Remote can hire, onboard, and pay your Canada team so you don't have to set up local HR services in the region. Remote also makes it easy to pay contractors in Canada. Sign up now to get started or talk to an expert for more details.
Employing in Canada
Canadian labor laws vary from one province to another, although the country does enforce some laws at the federal level. Employees in Canada enjoy protections against discrimination based on age, religion, sexual orientation, gender expression, and race.
Although “Canadian work experience” is a common subject, employers should avoid asking employees about Canada-specific work history. Depending on the laws of the province, certain questions about Canadian work experience could be considered discriminatory. When interviewing candidates in Canada, limit questions to the duties and responsibilities of the role instead of focusing on where the candidate gained the experience.
Common questions including minimum wage, overtime rates, and guaranteed paid time off vary depending on the province. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Canada.
Minimum Wage
Canada’s minimum wages vary by province. Most provinces adjust their minimum wages regularly to keep up with inflation. The Retail Council of Canada maintains an updated list of minimum wages in the country. The Government of Canada proposed a federal minimum wage of $15 per hour, rising with inflation, effective on December 29, 2021. However, each province still sets their own hourly minimum wage.
Payroll Cycle
For customers of Remote, all employee payments will be made in equal installments twice a month (15th of the month and end of the month), payable in arrears.
Onboarding Time
We can help you get a new employee started in Canada fast. The minimum onboarding time we need is only 2 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
Competitive benefits package in Canada
Remote supports our clients by offering competitive benefits packages that will help you attract and retain the best talent across the globe! Our benefits specialists have done the research on norms and requirements in each local market and have crafted packages that will allow your employees to thrive, no matter what country they live in.
Our benefits packages in Canada are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:
- Health Insurance
- Dental Insurance
- Vision Insurance
- Mental Health Support
- Pension or 401(K)
- Life and Disability Insurance
Local market insights
- In Canada, 99%* of employers offer supplemental health insurance to their workforce. (*based on 3rd-party market research from our partners)
- Although the country has a public health system, supplemental health insurance provides employees with access to a wider range of options for providers and specialists, as well as significantly shorter wait times. Our plans also offer global coverage (excluding the US) to protect your employees when they are traveling outside their home country.
- Life, accident, and long-term disability insurance are also offered by 90%* of employers in Canada. (*based on 3rd-party market research from our partners)
Our core benefits (which often include things like healthcare) are required in most countries where we hire. Because Remote is the employer of record, it’s important for us to offer the same core benefits to all employees in a country to ensure fair equity and non-discriminatory hiring practices, which protects your business and ours. Note that we do not add a markup on any benefits premiums or administration costs.
If you'd like specific information about our benefits packages in Canada, start onboarding your first employee with Remote today.
For more insight into fair equity and benefits best practices, download our Global Benefits Guide and share with the rest of your hiring team.
Calculate the cost to hire an employee
in Canada
Taxes in Canada
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Canada.
Employer (outside Quebec)
5.7% - Canada Pension Plan, up to $3,499.80 per year
2.21% - Employment Insurance, up to $1,333.84 per year (can vary by province)
Employee (outside Quebec)
5.7% - Canada Pension Plan, up to $3,499.80 per year
1.58% - Employment Insurance, up to $952.74 fper year
Employee Federal Income Tax
15% - $0 to $50,197
20.5% - $50,195 to $100,392
26% - $100,392 up to $155,625
29% - $155,625 up to $221,708
Employee Provincial Income Tax
Canada’s individual provinces and territories charge their own income taxes to residents and workers. These rates change periodically and vary widely from one province to another. Remote Canada legal entity is based in the province of British Columbia and income tax withholding is based on this province's rates. For employees residing outside of this province, province-specific adjustments to the tax withholding amount will be needed. For updated information regarding tax rates in specific provinces, view Canada’s official tax website.
Types of leave
Paid time off
Paid time off laws in Canada vary by province. Employment standard legislation guarantees two weeks of PTO to employees after one year of work. After five years, the minimum increases to three weeks, then four weeks at 10 years. Employers may offer unlimited time off in Canada.
Family violence leave
Canada is one of a few nations to offer family violence leave for victims. Employers must offer at least 10 days of protected leave to employees to use in case of family violence, five of which must be paid. Employees accused of committing acts of family violence are not eligible.
Medical leave
Employees in Canada are guaranteed a minimum of 17 weeks of unpaid protected medical leave. Employers are permitted to request medical documentation verifying the need for any leave lasting longer than three days.
COVID-19 leave
Canada offers protected paid leave to employees who must quarantine because of COVID-19 and employees who must take time off to recover from the virus or care for a relative who tests positive. Quarantine leave can last up to two weeks, while sickness or care leave can last up to 26 weeks. Canada’s COVID-19 leave guarantees are set to expire on September 21, 2021.
Critical illness leave
Canadian employees are entitled to protected leave to care for sick family members. Protected critical illness leave covers 37 weeks per sick child and 17 weeks for sick adults.
Paid holiday leave
Canada observes several public holidays (see above). Employees are entitled to holiday pay no matter how long they have worked for the company.
Leave for legal proceedings
Employees in Canada are entitled to protected unpaid leave to serve on juries or act as witnesses, but this leave does not extend to employees who are parties in lawsuits, either as plaintiffs or defendants.
Child disappearance leave
Parents of children who go missing are entitled to 52 weeks of unpaid protected leave. If the child is discovered to be deceased, leave entitlement increases to 104 weeks beginning on the date of the death. Adoptive parents, guardians, and primary caregivers are all eligible to receive child disappearance leave, provided they are not charged with a crime related to the disappearance. This leave also does not extend in cases where children are suspected to be party to a crime related to their own disappearance.
Maternity leave
Canada guarantees at least 15 weeks’ maternity leave, though some provinces set a higher minimum. Employers do not have to pay for maternity leave, as Canadian social programs provide payments to new parents.
Paternity and parental leave
Parents in Canada are also entitled to at least 27 weeks’ shared parental leave, regardless of gender. In some provinces, the shared parental leave minimum is 35 weeks.
Aboriginal employee leave
Employees in Canada with Aboriginal heritage are entitled to receive five days of unpaid leave per year to observe Aboriginal customs and events, which can include fishing, hunting, and traditional ceremonies.
Bereavement leave
Federal law in Canada guarantees employees at least five days of unpaid protected bereavement leave after the death of an immediate family member. As with personal leave, employers are only required to pay for three of the five days. Employees become eligible for bereavement leave after three months of employment.
Employment termination
Termination process
Canadian laws encourage employers to work with employees who are underperforming instead of defaulting to termination. In cases where termination is unavoidable, though, employees in Canada retain a few protections. Canada does not practice at-will employment. Quebec has special protections in place regarding employee terminations for employees with more than two years of service.
Notice period
Employees are usually entitled to notice (or pay in lieu of notice) when being terminated. Notice periods vary based on age, experience, tenure, and availability of other work options.
Probation periods
Probationary periods are common in Canada and typically last around three months. Some provinces enforce mandatory probationary periods to provide employers with some protection, even when the probationary period is not specified in the employment agreement.
