Canada, the second-largest country in the world in area occupies roughly the northern two-fifths of the continent of North America. Despite Canada’s great size, it is one of the world’s most sparsely populated countries.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Canada.
Canadian Dollars (CAD, CA$)
Languages spoken :
38.25 million (2021 est.)
Minimum wage 2023 :
CA$16.65 per hour
Cost of Living index :
$$$$ (25 of 139 countries)
Payroll Frequency :
VAT - standard rate :
5% (varies by province)
GDP - real growth rate :
The national holidays mentioned below are valid for the year 2023.
The approximate time for sharing the contract with an employee in Canada is 5 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.
NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.
Hours of Work of Part III of the Canada Labour Code sets out the requirements an employer must meet with respect to hours of work and overtime. Managers, superintendents, and employees who carry out management functions are exempted. Architects, dentists, engineers, lawyers, and medical doctors are also excluded.
Hours worked in excess of standard hours must be paid for at the overtime rate. Overtime means any hours worked in excess of the standard hours specified in the Code of Regulations, in most cases eight in a day or 40 in a week. A minimum of one and one-half times the regular rate of wages is prescribed as the overtime rate.
Employees are not provided with a statutory limit for probation. However, every province has provided the maximum possible timelines that range from a month to 6 months.
An employer must provide an employee with at least two weeks’ written notice of their intention to terminate the employment of an employee. In lieu of written notice, the employer must pay two weeks’ wages at the regular rate to the employee.
An employee must have completed a minimum period of service in order to be entitled to notice (typically three months, except in Manitoba – 30 days – and in New Brunswick, Prince Edward Island, and Yukon – six months).
In Nova Scotia, Prince Edward Island, Newfoundland & Labrador, Yukon, Northwest Territories, Nunavut, and Québec, employees must receive two weeks of paid vacation after completing one year with an employer. Saskatchewan offers three weeks after a year of service. Most provinces revise the limit of annual leave to three weeks after the job duration increases. Employees are paid vacation pay when they take their annual leave.
Generally, a full-time employee with a workweek of 37.5 hours earns sick leave at the rate of 9.375 hours each month for which they receive 75 hours pay. Sick leave is prorated for a part-time employee.
Employment Insurance (EI) sickness benefits can provide a beneficiary with up to 15 weeks of financial assistance if they cannot work for medical reasons. They could receive 55% of their earnings up to a maximum of CA$595 a week. The employee must get a medical certificate to show that they are unable to work for medical reasons.
The standard parental benefit is provided for up to 40 weeks, but one parent cannot receive more than 35 weeks of standard benefits. The benefit rate is 55% of the weekly income and is paid up to CA$595. The extended parental benefit is provided for up to 69 weeks, but one parent cannot receive more than 61 weeks of extended benefits. This benefit is paid at the rate of 33% of the weekly income and is paid up to CA$357.
Maternity leave varies between the provinces. The employer does not need to pay wages during maternity leave. Maternity benefits are offered by the Employment Insurance agency.
There is no statutory provision of paternity leave except the 35 weeks offered to either of the parents as parental leave. Quebec offers five weeks paternity leave.
Employees are entitled to up to five days of personal leave per calendar year to:
Employees are entitled to up to 10 days of leave per calendar year if they are:
Special types of leave may be different in each province. Special leave could include compassionate care leave, court leave, casual leave, family responsibility leave, etc.
If the employee is an Aboriginal employee with at least three months of continuous employment, they are entitled to take up to five days of leave per calendar year. They may take this leave in order to take part in traditional Aboriginal practices.
Employees are entitled to unpaid leave for the time necessary to participate in a judicial proceeding as a:
Employees are entitled to medical leave protection of up to:
The Canadian social security system incorporates federal law on welfare issues such as unemployment insurance and old age security, as well as, provincial policies and programs on welfare issues, such as education, social services, and social assistance. The country has two key components of its social security: Pension and Employment Insurance (EI).
|Category||Employer Contribution||Maximum Annual Insurable Earnings||Maximum Annual Employer Premium|
|Employer Employment Insurance (EI)||CA$60,300|
|Canada Pension Plan (CPP)||CA$61,600||–|
Canada has a decentralized, universal, publicly funded health system called Canadian Medicare. Health care is funded and administered primarily by the country’s 13 provinces and territories. Health insurance is not required statutorily by employers.
Workers’ Compensation programs protect employees from the financial hardships associated with work-related injuries and occupational diseases. These programs are largely administered by provincial and territorial governments in Canada.
The total cost is financed through contributions that vary by industry and according to the assessed degree of risk (large firms in some provinces may self-insure).
To prove their eligibility and to receive payments they may be entitled to, unemployed beneficiaries are required to complete bi-weekly reports by internet or telephone. Failure to do so can mean a loss of benefits. For most people, the basic rate for calculating EI benefits is 55% of their average insurable weekly earnings, up to a maximum amount. The maximum yearly insurable earnings amount is CA$60,300. This means that they can receive a maximum amount of CA$638 per week.
The Canada Pension Plan (CPP) retirement pension is a monthly, taxable benefit that replaces an employee’s income when they retire. To qualify, the employee must:
Valid contributions can be either from an employee’s work in Canada or as the result of receiving credits from a former spouse or former common-law partner at the end of the relationship.
Pension Plan contributions in Canada and Quebec are required by both the employee and employer.
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