Hiring in Canada

You can hire in Canada directly through a Canadian entity or as a registered nonresident employer, use an employer of record, or engage independent contractors for genuinely independent services. Contractor status depends on the actual working relationship, including the engagement's terms and conditions. 4dev.com is a global contractor platform working with independent contractors in Canada.

Three ways to hire in Canada

Use direct employment or an employer of record for employee work, and a contractor engagement for services that meet the applicable independence test.

Route	Legal employer	What you pay on top of salary	How you end it
Your own entity	Your Canadian entity; your foreign company can alternatively employ directly through nonresident employer registration	8.23% basic CPP/EI components reference outside Quebec, before the CPP exemption and annual caps; excludes CPP2 and other costs. Assess provincial levies, workers compensation and agreed benefits separately.	0–8 weeks (BC statutory) notice or compensation floor, subject to statutory exceptions and greater contractual or other rights; apply the worker's actual jurisdiction.
Employer of record	The provider's employing entity under the arrangement; assess any client exposure under applicable law	8.23% basic CPP/EI components reference outside Quebec, before the CPP exemption and annual caps; excludes CPP2 and other costs. Check the provider contract for additional charges and included obligations.	0–8 weeks (BC statutory) employment notice or compensation floor, subject to statutory exceptions and greater contractual or other rights. Assess the client–provider agreement and assignment end separately.
Contractor	No legal employer for genuinely independent services	Agreed service price and applicable tax obligations; the salary contribution reference does not apply to this engagement	Contract terms and applicable law; the employee notice schedule does not govern genuinely independent services.

The contribution reference uses federal CPP and standard EI components for employment outside Quebec; Quebec has a different package. The exemption, annual ceilings and additional CPP2 band change the amount payable, so multiplying gross salary by this reference alone does not produce a complete budget. The BC notice figure is a provincial statutory floor, with service thresholds explained in the termination section.

Direct hiring also requires separate checks of provincial business registration, corporate tax and permanent-establishment exposure, workers-compensation coverage and work authorisation. Payroll registration does not settle those questions; the registration section explains the setup.

An employer of record's activities and the employee's work location determine which provider rules need review. Ontario defines a temporary help agency by its activity of employing people for temporary assignments to clients; BC employment-agency licensing and Quebec personnel-leasing permits have their own scope. Contractor incorporation and GST/HST registration answer business and tax questions separately from the assessment of the working relationship.

Choose the province and sector before the hiring route

Identify the sector and province of work before choosing employment terms, then determine the payroll province and year-end tax residence separately.

Federal-sector employment and provincial standards

The Canada Labour Code's employment standards apply to federally regulated work, including banks, telecommunications and transport that crosses provincial borders. Employment outside federally regulated industries follows the standards of the province or territory of work.

The BC minimum-wage, vacation, statutory-holiday and notice figures in this guide are provincial examples. For Ontario, Quebec and federally regulated employees, use the relevant jurisdiction's rules to set the contract and schedule.

Work location, payroll province and year-end residence

For payroll, determine the employee's province of employment (POE) for each pay period. CPP or QPP, EI and provincial income-tax deductions follow that determination regardless of the employee's province of residence; Quebec payroll treatment also includes QPIP. Provincial tax withheld for Quebec employment is remitted to Revenu Québec, while other provincial or territorial income-tax deductions are remitted to the CRA.

A remote employee's home address does not by itself settle the payroll province. The CRA's province-of-employment guidance provides an attachment test where an employer directs or permits full-time remote work under an agreement that both parties can substantiate. Its primary indicator is the establishment where the employee would physically perform their duties without that agreement; an establishment used immediately before remote work normally remains the attachment point unless circumstances or duties change. This administrative policy determines CPP/QPP, EI, QPIP and income-tax deductions, so it should not be used to select the employee's employment-standards regime.

For a Canadian-resident employee working in Canada whose employer has no Canadian establishment, the CRA's deduction instructions treat the employment as being in Canada beyond the limits of any province or territory. A Quebec place of business may require source-deduction registration with Revenu Québec alongside CRA registration. The business-registration, corporate-tax, insurance and work-authorisation checks for direct hiring remain separate.

For the employee's final 2026 personal income-tax return, provincial or territorial rates depend on residence on 31 December 2026. Record the workplace and sector, pay-period POE and year-end residence separately because each serves a different decision.

The labour market: compare the role and region

Set a salary reference by matching the occupation, region, data period and pay unit to the job you are hiring for.

Salary reference points

Job Bank's national figures distinguish software developers and programmers from software engineers and designers. Its low, median and high wage estimates describe the wage distribution for each occupation; they are not junior, mid-level and senior salary bands. The figures below use the 2023–2024 reference period, with wages updated on 19 November 2025.

Software developers and programmers, Canada, NOC 21232	CAD 30.00 low / CAD 48.08 median / CAD 76.92 high per hour; 2023–2024	Job Bank — Developer wages
Software engineers and designers, Canada, NOC 21231	CAD 35.00 low / CAD 56.49 median / CAD 91.35 high per hour; 2023–2024	Job Bank — Engineer wages
Software developers and programmers, Toronto Region	CAD 48.08 / hour median; 2023–2024	Job Bank — Developer wages
Software developers and programmers, Montréal Region	CAD 45.67 / hour median; 2023–2024	Job Bank — Developer wages
Software developers and programmers, Lower Mainland–Southwest Region	CAD 52.40 / hour median; 2023–2024	Job Bank — Developer wages
Software developers and programmers, Ottawa Region	CAD 50.26 / hour median; 2023–2024	Job Bank — Developer wages

For the same developer occupation and reference period, Lower Mainland–Southwest has the highest hourly median among these four regions, followed by Ottawa, Toronto and Montréal. The estimates cover wider areas than the cities themselves. Use them as an offer benchmark alongside the role's duties and experience requirements.

What the national weekly mean measures

Canada's national reference is CAD 1,347.14 / week (mean), the preliminary, seasonally adjusted July 2026 figure from the Survey of Employment, Payrolls and Hours (SEPH). It measures gross weekly payroll earnings, including overtime, before source deductions. Statistics Canada calculates this arithmetic mean by dividing the in-scope gross taxable weekly payroll by the number of payroll employees.

The population includes full-time, part-time and casual or temporary payroll employees. It excludes unincorporated self-employed people and unpaid family workers, among other categories, and the survey excludes industries such as agriculture, fishing and trapping, and private household services. Its national weekly mean and Job Bank's occupational hourly medians therefore describe different populations and periods; neither is a contractor service-price benchmark.

For a hypothetical budget using 52 identical paid weeks at the weekly mean, annual gross would be CAD 70,051.28 and the annual amount divided by 12 would give CAD 5,837.61 per month. These are calculated equivalents, rather than measured annual or monthly salaries; the employer-cost section applies the contribution rules separately.

Finding candidates and reading wider wage reports

The Job Bank developer wage report compares the occupation across regions. When using recruiter or industry reports, match their geography, observation period, pay unit, full-time or part-time population, experience and benefits assumptions to your proposed role.

Canada's Labour Force Survey unemployment rate was 6.5% in September 2026. That national measure supplies broad labour-market context; it does not establish how long your developer vacancy will take to fill or whether the required skills are in short supply.

Registering as an employer, step by step

Register the employing business with the CRA through its resident or nonresident payroll-registration channel. A foreign company can use nonresident employer registration without forming a separate Canadian entity. Identify the employee's work location and payroll province to assess additional provincial registrations.

Step	What happens	Takes
Choose the employing business and province	Decide between a Canadian entity and direct employment by the foreign company; identify the applicable employment standards and payroll treatment.	Depends on registration and required documents
Obtain the Business Number and payroll account	Use Business Registration Online for a Canadian resident business, or Non-resident business registration for a nonresident business.	Depends on registration and required documents
Assess Quebec registration	A Quebec place of business may require provincial source-deduction registration in addition to CRA registration.	Depends on registration and required documents
Prepare the first payroll	Arrange the applicable deductions and remittances, and complete the provincial registrations required for your setup. Confirm the CRA-assigned remittance frequency.	Depends on registration and required documents

Total: no confirmed end-to-end lead time. The required registrations and documents depend on your setup.

Use the CRA payroll-registration page to reach the resident or nonresident online channel. Register the payroll account before the first remittance due date, ordinarily the 15th of the month following the month in which you begin withholding from the employee's pay, unless the CRA assigns a different frequency. This is a remittance deadline, separate from registration lead time.

Business registration, workers-compensation coverage, work authorisation and corporate-tax or permanent-establishment exposure need separate assessments. For example, a foreign employer's Canadian sales employee with general authority to contract on its behalf can raise corporate-tax questions. Keep those assessments with the payroll-registration records.

Hiring and onboarding: job information and contracts

Before the employee starts, confirm the applicable employment terms, recruitment disclosures and written-information duties for their jurisdiction.

Legal limits in recruitment

Since 1 January 2026, Ontario's publicly advertised job-posting requirements apply to covered employers with at least 25 employees on the posting date. Count the employing business's workforce, including the relevant agency arrangement, before publishing. This test is separate from the new employee's first-day test below.

For a covered posting:

• State the expected compensation or a range. A disclosed range cannot span more than CAD 50,000 annually; compensation disclosure is excepted where expected compensation, or the range's upper end, exceeds CAD 200,000 annually.
• Disclose the use of artificial intelligence during hiring.
• State whether the posting is for an existing vacancy. A posting without an existing vacancy is not automatically prohibited.
• Exclude requirements for Canadian experience from the posting and its associated application form.
• Tell an interviewed applicant whether a hiring decision has been made within 45 days after the interview. The update can be given in person, in writing or using technology. If there are multiple interviews, check the applicable timetable before setting the update deadline.

Retain the posting and associated application form for three years after public access to the posting is removed, and the required information given to interviewed applicants for three years after it is provided. Record the two start events separately.

In Quebec, job offers must be published in French. Another-language requirement must be necessary for the tasks, and the employer must have taken reasonable measures to avoid it.

Onboarding checklist

Since 1 July 2025, covered Ontario employers with at least 25 employees on a new employee's first day must supply written job information before that day. If advance provision is impracticable, they must provide it as soon afterward as reasonably possible. The information covers the employer's legal and operating names and contact details, the anticipated initial work location, starting wage or commission, pay period and payday, and anticipated initial hours; general descriptions of initial location and hours are sufficient.

Assignment employees count toward a temporary help agency's threshold for this first-day duty, but are excluded from this particular entitlement. The agency has separate assignment-information duties covering the client's identity and contact details, the wage and benefits, hours and work description, pay period and payday, and estimated assignment term where available. Federal Part III employers have a different obligation: a written employment statement with the prescribed information within the first 30 days of employment.

Prepare the following alongside the required written information:

• Confirm the legal employer, province of work, sector and payroll province determination.
• Check the employee's work authorisation and any conditions relevant to the role.
• Agree the starting compensation, pay schedule, hours and place of work.
• Record vacation and leave terms, and any contractual benefits or bonuses.
• Set out confidentiality obligations and the intended treatment of rights in the work.
• Record the service start date, any probation clause and termination terms.

For Quebec employment, CNESST recognises verbal or written contracts and recommends a written agreement. An individual contract of adhesion must first be presented in French; confirm the language procedure applicable to the precise contract format before signing. Prepare French work tools, training and documents needed to perform the role as part of the onboarding setup.

Probation and transferring an existing worker

A BC probation clause must be clearly stipulated in the employment contract.

Probation

Set by contract (BC)

Achkar Law — BC probation

Extending contractual probation beyond three months does not postpone BC statutory notice rights. After three consecutive months, the BC statutory compensation or notice floor begins at one week, subject to the applicable statutory conditions. Ontario's three-month statutory notice threshold likewise does not establish a universal maximum probation period; Ontario employment standards generally cannot be waived, and greater contractual or statutory benefits can prevail.

When moving an existing worker between employing arrangements, compare the records before agreeing the new terms:

• Original service date and the proposed date recognised by the new employer.
• Accrued vacation and other balances, and how they will be carried forward or settled.
• Existing benefits and any change in eligibility or coverage.
• Current termination terms and the effect of the proposed agreement.

Earlier agency service can matter where the worker has continued with the same client. A client found to be a true or common employer can face common-law termination-notice exposure, so assess the service history and proposed contract together before treating the transfer as a new start.

Work permits and hiring someone already in Canada

Choosing a hiring arrangement does not establish a foreign national's right to work in Canada.

Check the permit conditions

A foreign national must be authorised to work by a work permit or the Immigration and Refugee Protection Regulations, even if already physically in Canada. Check whether the proposed job falls within their permission. Bringing someone into Canada requires a separate assessment of the immigration route.

Temporary-resident work conditions can restrict the occupation or type of work, employer, duration, location, and times or periods of work. Compare the proposed employing business, duties, workplace and schedule with those conditions before onboarding. Permit-location restrictions, employment standards and payroll province each require a separate check.

Service Canada directs employers to request a new employee's Social Insurance Number (SIN) within three days of their start where the law requires it. It advises against asking on an application or during an interview and says physical proof is unnecessary. The three-day deadline concerns the employer's request, not SIN issuance.

Identify the real employer before an LMIA application

For the high-wage Temporary Foreign Worker Program, assess the actual employer–employee relationship before submitting a Labour Market Impact Assessment (LMIA) application. The ESDC high-wage requirements, updated on 18 September 2026, describe the employer as the entity that hires the worker, sets working conditions and directly pays them. Service Canada's assessment includes who:

• Directly benefits from the work.
• Decides where, when and how the work is done.
• Pays wages and other compensation.
• Sets duties and expectations and monitors performance.
• Has authority to dismiss the worker.
• Signs the employment agreement and is recognised by the worker as the employer.

Under this high-wage guidance, a staffing or employment agency recruiting for another business cannot be approved to hire a temporary foreign worker for that business where the employer–employee relationship does not exist. Apply the employer test above to who directs the work and carries out the employment obligations. LMIA-exempt routes and other employer of record arrangements require their own immigration assessment.

Employee protections beyond wages and leave

Apply the relevant human-rights, safety, collective-bargaining and employee-privacy rules alongside the employment terms.

Equal treatment and workplace harassment

BC's Human Rights Code prohibits discrimination in hiring, continued employment and employment terms on its specified grounds. These include Indigenous identity, race, colour, ancestry, place of origin, political belief, religion, marital or family status, physical or mental disability, sex, sexual orientation, gender identity or expression, age, and a criminal or summary conviction unrelated to the employment. The Code also prohibits discriminatory employment-agency referrals, with exceptions for bona fide occupational requirements and specified seniority or benefit schemes.

In Ontario, employers must accommodate disability-related needs to the point of undue hardship so that people with disabilities have equal opportunities, access and benefits. Assess the person's needs and proposed adjustments rather than applying a blanket attendance or medical policy. Ontario employers covered by the Occupational Health and Safety Act must also maintain a written workplace-harassment program and ensure that incidents and complaints receive an investigation appropriate to the circumstances.

Occupational health and safety

Ontario's Occupational Health and Safety Act requires covered employers to take every precaution reasonable in the circumstances to protect a worker. Assess the work, equipment and working arrangements, and assign responsibility for responding to reported hazards and incidents. For a remote role, establish the applicable safety regime separately from the payroll province; the Ontario duty does not provide a national rule for home offices.

Unions and collective agreements

In Ontario, a collective agreement sets employment terms for unionised employees and the rights, privileges and duties of the union, employer and employees. The union and employer must meet and bargain in good faith and make reasonable efforts to conclude an agreement. Before drafting an individual offer, check whether the position is covered and review the agreement's hours, benefits and other terms. Identify the union representative and the agreement's workplace reporting and consultation procedures.

Personal information and confidentiality

Federal private-sector employee information in federal works, undertakings and businesses falls within the Personal Information Protection and Electronic Documents Act (PIPEDA). Under the federal workplace guidance, employers must limit collection to information necessary for identified purposes. Employment-related consent exceptions leave the other collection, use, disclosure and retention requirements in place; elsewhere, applicable provincial employee-privacy laws must be assessed.

For organisations covered by BC's Personal Information Protection Act (PIPA), collection must serve reasonable purposes permitted or disclosed under the Act, with consent or an applicable statutory exception. The employment-purpose exception is limited to reasonable collection for establishing, managing or terminating the employment relationship and requires advance notice of the collection and its purposes. Covered organisations must make reasonable security arrangements for personal information in their custody or control.

BC PIPA requires information used to make a decision directly affecting an individual to be retained for at least one year after use, giving the person a reasonable opportunity to access it. This period applies to those decision records; assess other HR records and eventual lawful disposal under their applicable obligations.

Before commissioning a background check, document its job-related purpose, the information needed and the applicable consent or statutory exception. For BC employment, assess conviction information against the Code's protection for convictions unrelated to the job. Include access and confidentiality procedures for the resulting records in your privacy arrangements.

Minimum wage depends on the jurisdiction

Federally regulated private-sector employers must pay the higher of the federal minimum wage and the applicable provincial or territorial minimum; other employment follows the relevant provincial or territorial rules.

These general hourly floors apply to covered employment, subject to special categories and exemptions. Use the rate effective on the work date, keeping scheduled increases separate from current rates.

Federal private sector	CAD 18.15 / hour; since 1 April 2026, subject to the higher provincial or territorial floor	ESDC — Federal minimum wage 2026
British Columbia	CAD 18.25 / hour (BC); since 1 June 2026	BC — Minimum wage
Quebec	CAD 16.60 / hour	CNESST — Minimum wage
Ontario	CAD 17.95 / hour; since 1 October 2026	Hicks Morley — Ontario minimum wage 2026
Alberta	CAD 15 / hour; since 1 October 2018	Alberta — Minimum wage; Alberta — Wage history
Manitoba	CAD 16.40 / hour; since 1 October 2026	Manitoba — Minimum wage
New Brunswick	CAD 15.90 / hour; since 1 April 2026	New Brunswick — Wage and pay
Newfoundland and Labrador	CAD 16.35 / hour; since 1 April 2026	Newfoundland and Labrador — Your rights at work
Nova Scotia	CAD 17.00 / hour; since 1 October 2026	Nova Scotia — General minimum wage order
Prince Edward Island	CAD 17.30 / hour; since 1 October 2026	PEI — Minimum wage order
Saskatchewan	CAD 15.70 / hour; since 1 October 2026	Saskatchewan — Minimum wage and reporting pay
Northwest Territories	CAD 17.20 / hour; since 1 September 2026	NWT — Minimum wage September 2026
Nunavut	CAD 20.17 / hour; since 1 September 2026	Nunavut — Labour and employment standards
Yukon	CAD 18.51 / hour; since 1 April 2026	Yukon — Minimum wage April 2026

Special worker rates and crossing an effective date

BC has special rates and exemptions, and Quebec has a distinct tipped-worker category. Check the worker's category before applying the general floor; the BC minimum-wage guidance explains its provincial categories.

Alberta's student rate is CAD 13 / hour for students under 18. When school is in session, it applies to the first 28 hours worked in a week, with CAD 15 / hour applying above that threshold; when school is not in session, the student rate applies to all regular hours. Some Alberta salespersons and domestic employees have separate weekly or monthly minima, so the general hourly rate should not be converted into a monthly floor for those roles.

New Brunswick has special rates for specified government-construction employees and residential summer-camp staff. Saskatchewan's minimum-wage rules also exclude specified categories, and Yukon's public-works Fair Wage Schedule is separate from its general floor. Where a pay period crosses an increase date, confirm the jurisdiction's treatment of the work dates before calculating wages; the general Ontario amount alone does not establish special-category rates or split-period treatment.

BC minimum wage since 2019

The BC general hourly minimum increased on 1 June in each year shown below.

1 June 2019	CAD 13.85 / hour	BC — Minimum wage
1 June 2020	CAD 14.60 / hour	BC — Minimum wage
1 June 2021	CAD 15.20 / hour	BC — Minimum wage
1 June 2022	CAD 15.65 / hour	BC — Minimum wage
1 June 2023	CAD 16.75 / hour	BC — Minimum wage
1 June 2024	CAD 17.40 / hour	BC — Minimum wage
1 June 2025	CAD 17.85 / hour	BC — Minimum wage
1 June 2026	CAD 18.25 / hour	BC — Minimum wage

Taxes and contributions: separate deductions from employer costs

The employer deducts the employee's income tax and contribution shares from pay, and budgets its own contribution shares separately using the applicable payroll province and contribution year.

Income tax and payroll location

The income-tax reference is 14–33% federal + provincial: the federal percentages are marginal rates, with provincial or territorial tax assessed separately. Each federal rate applies to the corresponding portion of taxable income, rather than to the employee's entire salary.

Federal taxable income through CAD 58,523, 2026	14%	CRA — Income tax brackets 2026
Federal taxable income CAD 58,523.01–117,045, 2026	20.5%	CRA — Income tax brackets 2026
Federal taxable income CAD 117,045.01–181,440, 2026	26%	CRA — Income tax brackets 2026
Federal taxable income CAD 181,440.01–258,482, 2026	29%	CRA — Income tax brackets 2026
Federal taxable income above CAD 258,482, 2026	33%	CRA — Income tax brackets 2026

Provincial schedules add a separate set of brackets. Ontario's basic marginal rates and Quebec's provincial rates below are not combined federal-and-provincial effective rates.

Ontario basic provincial marginal rates, 2026	5.05%, 9.15%, 11.16%, 12.16%, 13.16%; taxable-income thresholds CAD 53,891, CAD 107,785, CAD 150,000 and CAD 220,000	CRA — Income tax brackets 2026
Quebec provincial marginal rates, 2026	14%, 19%, 24%, 25.75%; taxable-income thresholds CAD 54,345, CAD 108,680 and CAD 132,245	Revenu Québec — Employer changes 2026
BC annual lowest provincial bracket, 2026	5.60% on taxable income through CAD 50,363	BC — Personal income tax rates
BC lowest bracket in CRA July 2026 Option 1 withholding	6.14% second-half catch-up rate, commencing with the first July payroll	CRA — July 2026 payroll formulas

The BC annual first-bracket rate and July Option 1 withholding rate serve different purposes. The 6.14% rate catches up the second half of the year after lower withholding in the first half; it is not the annual tax rate and does not apply to every calculation method. CRA's Option 2 rates are not prorated.

Configure deductions using pay-period province of employment; final 2026 provincial or territorial income tax depends on residence on 31 December 2026. The bracket tables show rates, not personal take-home pay.

CPP, CPP2 and EI outside Quebec

For ordinary covered employment outside Quebec, both parties contribute to the Canada Pension Plan (CPP), including its separate upper-band CPP2 component. Employment Insurance (EI) has an employee premium and a standard employer premium calculated from it. The following figures are for 2026.

CPP annual basic exemption	CAD 3,500	CRA — CPP rates
CPP first annual pensionable-earnings ceiling	CAD 74,600; maximum contributory earnings CAD 71,100 after the exemption	CRA — CPP rates
CPP first-tier contribution	5.95% each for employer and employee; annual maximum CAD 4,230.45 each	CRA — CPP rates
CPP2 upper band	Earnings above CAD 74,600 through CAD 85,000; 4% each for employer and employee; annual maximum CAD 416 each	CRA — CPP2 rates
EI insurable-earnings ceiling	CAD 68,900 annually	CRA — EI rates
Employee EI	1.63%; annual maximum CAD 1,123.07	CRA — EI rates
Standard employer EI	1.4 times the employee premium; annual maximum CAD 1,572.30	ESDC — Employer EI; CRA — EI rates

The 8.23% reference combines the basic employer CPP and standard EI components before applying the exemption and annual caps. CPP2 sits outside that reference, and each component has its own earnings base. Qualifying wage-loss plans can reduce the employer EI rate, but the illustrations below use the standard multiplier without a reduction.

Quebec uses a different contribution package

Quebec payroll treatment uses the Quebec Pension Plan (QPP), Quebec EI and the Quebec Parental Insurance Plan (QPIP). Its package must be assessed separately from the outside-Quebec CPP/EI examples.

QPP first tier, 2026	6.30% each for employer and employee on pensionable earnings above CAD 3,500 through CAD 74,600; annual maximum CAD 4,479.30 each	Revenu Québec — Employer changes 2026
QPP upper earnings band, 2026	Above CAD 74,600 through CAD 85,000; confirm the applicable upper-band rate and maximum before budgeting	Revenu Québec — Employer changes 2026
Quebec employee EI, 2026	1.30% through CAD 68,900 insurable earnings; annual maximum CAD 895.70	CRA — EI rates
Standard Quebec employer EI, 2026	1.4 multiplier, equivalent to 1.82%; annual maximum CAD 1,253.98	CRA — EI rates; ESDC — Employer EI
QPIP, 2026	Employee 0.430%, employer 0.602% through CAD 103,000 eligible earnings; annual maxima CAD 442.90 employee and CAD 620.06 employer	Revenu Québec — Employer changes 2026
Quebec health services fund, ordinary private employers outside primary/manufacturing sectors, 2026	1.65% at total payroll through CAD 1 million; formula-based rate above CAD 1 million and below CAD 7.8 million; 4.26% at CAD 7.8 million or more	Revenu Québec — Employer changes 2026

Other employer charges need their own eligibility and earnings-base checks. BC's employer health-tax exemption covers annual BC remuneration through CAD 1 million, subject to eligibility and associated-employer rules. Ontario's 2026 WSIB average is CAD 1.23 per CAD 100 of insurable earnings; industry and employer-specific rates vary, so that average is not every employer's premium.

What an employee actually costs you

The illustrations below show salary plus selected employer contributions for an ordinary full-year CPP/EI-covered employee with one employer outside Quebec, using 2026 rules and no EI premium reduction. They apply the annual CPP basic exemption and ceiling, the separate CPP2 upper band, and the official employer EI maximum. Amounts are rounded at the annual component level.

The salary inputs are hypothetical annual equivalents: the July 2026 preliminary SEPH weekly mean assumes 52 identical paid weeks, while the national 2023–2024 Job Bank developer and engineer hourly medians assume 40 paid hours per week for 52 paid weeks. These inputs describe different populations and periods; the resulting salaries are not observed 2026 offers or seniority bands. Monthly equivalents divide the annual amount by 12 and do not describe actual payroll withholding.

Weekly-mean salary illustration

This scenario uses the July 2026 gross weekly mean of CAD 1,347.14 for 52 identical paid weeks.

Annual gross salary	CAD 70,051.28	Statistics Canada — Weekly earnings July 2026
Annual employer CPP first tier	CAD 3,959.80	CRA — CPP rates
Annual employer CPP2	CAD 0.00	CRA — CPP2 rates
Annual employer EI	CAD 1,572.30	CRA — EI rates; ESDC — Employer EI
Annual salary plus CPP/CPP2/EI subtotal	CAD 75,583.38	Statistics Canada — Weekly earnings July 2026; CRA — CPP rates; CRA — CPP2 rates; CRA — EI rates; ESDC — Employer EI
Monthly gross equivalent	CAD 5,837.61	Statistics Canada — Weekly earnings July 2026
Monthly subtotal equivalent	CAD 6,298.62	Statistics Canada — Weekly earnings July 2026; CRA — CPP rates; CRA — CPP2 rates; CRA — EI rates; ESDC — Employer EI
Effective annual employer CPP/CPP2/EI burden	7.90% of hypothetical gross	Statistics Canada — Weekly earnings July 2026; CRA — CPP rates; CRA — CPP2 rates; CRA — EI rates; ESDC — Employer EI

The salary remains below the first CPP ceiling, so no CPP2 is due in this illustration. EI reaches its annual employer maximum, while the CPP first tier still reflects the exemption and pensionable earnings below its ceiling.

Developer-median salary illustration

This scenario uses the national developer hourly median of CAD 48.08 for 40 paid hours per week and 52 paid weeks.

Annual gross salary	CAD 100,006.40	Job Bank — Developer wages
Annual employer CPP first tier	CAD 4,230.45	CRA — CPP rates
Annual employer CPP2	CAD 416.00	CRA — CPP2 rates
Annual employer EI	CAD 1,572.30	CRA — EI rates; ESDC — Employer EI
Annual salary plus CPP/CPP2/EI subtotal	CAD 106,225.15	Job Bank — Developer wages; CRA — CPP rates; CRA — CPP2 rates; CRA — EI rates; ESDC — Employer EI
Monthly gross equivalent	CAD 8,333.87	Job Bank — Developer wages
Monthly subtotal equivalent	CAD 8,852.10	Job Bank — Developer wages; CRA — CPP rates; CRA — CPP2 rates; CRA — EI rates; ESDC — Employer EI
Effective annual employer CPP/CPP2/EI burden	6.22% of hypothetical gross	Job Bank — Developer wages; CRA — CPP rates; CRA — CPP2 rates; CRA — EI rates; ESDC — Employer EI

Engineer-median salary illustration

This scenario uses the national software engineer and designer hourly median of CAD 56.49 for 40 paid hours per week and 52 paid weeks.

Annual gross salary	CAD 117,499.20	Job Bank — Engineer wages
Annual employer CPP first tier	CAD 4,230.45	CRA — CPP rates
Annual employer CPP2	CAD 416.00	CRA — CPP2 rates
Annual employer EI	CAD 1,572.30	CRA — EI rates; ESDC — Employer EI
Annual salary plus CPP/CPP2/EI subtotal	CAD 123,717.95	Job Bank — Engineer wages; CRA — CPP rates; CRA — CPP2 rates; CRA — EI rates; ESDC — Employer EI
Monthly gross equivalent	CAD 9,791.60	Job Bank — Engineer wages
Monthly subtotal equivalent	CAD 10,309.83	Job Bank — Engineer wages; CRA — CPP rates; CRA — CPP2 rates; CRA — EI rates; ESDC — Employer EI
Effective annual employer CPP/CPP2/EI burden	5.29% of hypothetical gross	Job Bank — Engineer wages; CRA — CPP rates; CRA — CPP2 rates; CRA — EI rates; ESDC — Employer EI

The developer and engineer illustrations reach the same annual CPP, CPP2 and EI maxima, so the same contribution amounts produce different effective burdens at their different gross salaries. The chart combines CPP and CPP2 in one pension-contribution series; the tables list them separately.

Each subtotal includes only salary and employer CPP, CPP2 and EI. Add applicable provincial levies, workers-compensation premiums, vacation and other leave arrangements, benefits and any provider charges when preparing the actual budget. The chart and tables do not supply a complete employment or EOR cost, or a Quebec cost model.

Pay schedules, benefits and rights in the work

Document the pay schedule, applicable reporting duties, agreed benefits and rights in the work alongside gross salary.

Pay periods and records

Ontario and BC have the following pay-schedule rules:

Ontario pay period and payday	A recurring pay period and payday; wages earned in the period are due by that payday, other than accruing vacation pay	Ontario — Employment Standards Act
BC ordinary wage-payment schedule	At least semimonthly and within eight days after the pay period ends, subject to statutory exceptions	BC — Employment Standards Act

The employee's payday and the tax authority's remittance deadlines are separate; the registration section gives the ordinary first CRA remittance deadline. Federal and Quebec pay-frequency rules need their own check before payroll setup.

Reconcile time and compensation records, gross earnings, deductions, the employee statement and remitted amounts. Configure statement fields and retention in your payroll system or provider for the jurisdiction and document type, with access to the required records.

Quebec provincial income tax deducted from employment earnings is reported on an RL-1 slip, rather than a T4; other provincial or territorial income-tax deductions are reported on the T4. Other deductions and records have separate requirements. For insurable employees, an interruption of earnings can require a Record of Employment (ROE), even without an intended EI claim; apply the issuance instructions for the interruption concerned.

Benefits, bonuses and a thirteenth salary

Separate statutory vacation and protected leave from the additional benefits and compensation terms you agree with the employee. Document any insurance or private pension arrangement, bonus plan or annual extra payment, including eligibility, calculation, timing and treatment when employment ends. Review the applicable law, contract and any collective agreement before treating an annual additional payment as either required or discretionary.

Budget for the terms you offer, including the vacation, other leave arrangements, benefits and provincial charges excluded from the contribution subtotals above. Keep any bonus conditions with the compensation records when establishing the annual commitment.

Confidentiality, non-competes and IP

The Canadian copyright default generally makes the employer the first owner of work created in the course of employment under a contract of service, absent a contrary agreement. The Copyright Act has specific provisions for contributions to newspapers, magazines and similar periodicals. Check the agreement against the works the employee will create.

The author-first-owner rule and the employment exception distinguish employee work from independently commissioned work. A copyright assignment or grant of an interest by licence must be in writing and signed by the owner or an authorised agent. Moral rights cannot be assigned, can be waived wholly or partly, and are not waived merely by assigning copyright; the Canada contractor guide covers the independent-services documentation in more detail.

Ontario generally prohibits employee non-compete agreements, with statutory exceptions for executives and specified business-sale circumstances. In the business-sale exception, the seller must become the purchaser's employee immediately after the sale and the restriction must be part of that sale arrangement. Enforceability elsewhere requires a separate assessment of the province and clause.

For an employer of record arrangement, inspect the employment and client–provider agreements to establish who holds copyright and what rights reach the client. The employment default alone does not establish client ownership, particularly where the provider is the employer. Set confidentiality and access procedures alongside the employee-privacy obligations described earlier.

Working time and overtime: Ontario, BC and federal rules

Set working hours and overtime using the employee's provincial or federal rules, with limits and exemptions checked separately from the overtime-pay threshold.

Federal ordinary hours	Standard eight hours daily and 40 weekly; ordinary weekly maximum 48 hours, subject to statutory exceptions, permits and averaging	Canada Labour Code
Federal overtime	At least 1.5 times the regular wage, or 1.5 paid hours off per overtime hour under a qualifying written agreement	Canada Labour Code
Ontario ordinary hours limits	Eight hours daily or a longer established regular workday, and 48 hours weekly; qualifying written/electronic agreements and statutory exceptions can alter the limits	Ontario — Employment Standards Act
Ontario ordinary overtime	1.5 times the regular rate after 44 hours in a work week; exemptions and special thresholds apply	Ontario — Overtime pay
BC ordinary daily overtime	1.5 times the regular wage above eight daily hours through 12; double time above 12 daily hours, except averaging/special rules	BC — Employment Standards Act
BC ordinary weekly overtime	1.5 times the regular wage above 40 weekly hours, except averaging/special rules	BC — Employment Standards Act

Ontario's ordinary weekly overtime threshold is reached before its ordinary weekly hours limit. A proposed schedule must also meet the applicable hours rules, taking account of the relevant agreement, averaging provisions and occupational exemptions; paying overtime alone does not settle that question.

BC high technology professionals have specific exemptions

BC's legally defined high technology professional category has a specific exemption from Part 4 hours and overtime rules, except section 39 on excessive hours, and from Part 5 statutory-holiday provisions. Apply the definition in the BC Employment Standards Regulation to the employee's duties, rather than relying on a job title or the employer's industry.

For the information-systems branch of the definition, the employee must be primarily engaged in applying specialised knowledge and professional judgement to investigate, analyse, design, develop or engineer a computer-based information system or its prototype. Basic operational technical support is excluded from that branch. The category does not cover every IT worker or every employee of a technology company, and it is not a national exemption.

Minimum-wage, vacation and termination protections remain, as does the excessive-hours provision. Review contractual working-time and holiday terms separately, and check the category before applying the ordinary BC meal, rest or overtime rules below.

Breaks, daily rest and scheduling

Meal breaks and rest periods have their own rules; they cannot be inferred from the overtime threshold.

Ontario covered employees: meal break	30 minutes free from work before exceeding five consecutive working hours; agreement can split it into two periods totalling 30 minutes within that interval	Ontario — Hours of work
BC ordinary covered employees: meal break	At least 30 minutes before exceeding five consecutive working hours; required work or availability during the break counts as time worked	BC — ESA meal and rest provisions
Federal covered employees: break	At least 30 unpaid minutes during each five consecutive working hours, in one unsplit period; paid if the employee must remain at the employer's disposal	ESDC — Federal breaks and rest
Ontario ordinary daily and between-shift rest	At least 11 consecutive hours off daily and eight hours between shifts, subject to statutory exceptions	Ontario — Hours of work
Ontario ordinary weekly rest	24 consecutive hours off in each work week, or 48 consecutive hours in two consecutive work weeks	Ontario — Hours of work
BC ordinary weekly rest	At least 32 consecutive hours free each week, or 1.5 times the regular wage for work in that otherwise-free period	BC — ESA meal and rest provisions
BC ordinary between-shift rest	At least eight consecutive hours free between shifts, except in an emergency	BC — ESA meal and rest provisions
Federal covered employees: between-shift rest	At least eight consecutive unpaid hours between shifts or work periods, subject to the applicable exclusions/modifications	ESDC — Federal breaks and rest

The federal break and rest provisions are subject to the Exemptions from, and Modifications to, Hours of Work Provisions Regulations and exclude managers and certain professionals. Ontario's ordinary rest rules have statutory exceptions, while BC's defined technology-professional exemption must be assessed before applying its ordinary Part 4 provisions. An agreement or exemption relevant to one rule should not be treated as permission to disregard every scheduling obligation.

BC's ordinary reporting-pay floor is two hours at the regular wage when an employee reports as required, even if work does not start. It rises to four hours where the employee was previously scheduled for more than eight hours that day. Statutory exceptions address an employee being unfit for work or failing to comply with the specified workplace-safety requirements; where work is suspended for reasons completely beyond the employer's control, the floor is two hours.

For an extended day or consecutive workdays, check limits, overtime, breaks and rest together. If planned work is cut short, check reporting pay under the relevant jurisdiction's rules.

Leave, sick pay and parental leave

Assess the leave's duration, service threshold, pay status and job protection separately under the employee's applicable rules.

Vacation time and vacation pay

Service history and jurisdiction determine minimum vacation time and vacation pay. Weeks of leave and percentages of wages measure different entitlements.

BC minimum annual vacation	2–3 weeks (BC): two weeks after 12 consecutive months; three weeks after five consecutive years	BC — Employment Standards Act
Ontario minimum annual vacation	Two weeks after each completed entitlement year with less than five years' employment; three weeks at five or more years	Ontario — Vacation
Ontario minimum vacation pay	4% of gross wages excluding vacation pay below five years; 6% at five or more years, for the relevant entitlement year or stub period	Ontario — Vacation
Federal minimum annual vacation and pay	Two weeks/4% after one year; three weeks/6% after five consecutive years with the same employer; four weeks/8% after 10 consecutive years	Canada Labour Code
Quebec minimum vacation, one to under three years' continuous service	Two consecutive weeks and 4% of gross wages in the reference year	CNESST — Annual vacation
Quebec minimum vacation, three or more years' continuous service	Three consecutive weeks and 6% of gross wages in the reference year	CNESST — Annual vacation

Keep service dates with vacation-pay records. The Quebec rows cover completed service of at least one year; employees below that threshold need a separate entitlement check.

Ordinary sickness and serious illness

Ordinary short-absence leave and serious-illness leave have separate eligibility and evidence rules.

Ontario ordinary ESA sick leave	Up to three unpaid days per calendar year after at least two consecutive weeks' employment	Ontario — Employment Standards Act
BC personal illness or injury	Five paid days and up to three unpaid days per calendar year after 90 consecutive days' employment	BC — Employment Standards Act; BC — Employment Standards Regulation
Federal paid medical leave	Three paid days earned after 30 continuous days' employment, then one day per completed month, up to 10 paid days per calendar year, subject to the regulations	Canada Labour Code
Quebec illness or non-work accident	Job-protected absence up to 26 weeks in 12 months; after three months' service, two paid days per calendar year shared with specified family, caregiving and other protected grounds	CNESST — Illness or non-work accident
Ontario long-term illness leave, since 19 June 2025	Up to 27 unpaid weeks in 52 weeks after 13 consecutive weeks' employment, for an ESA-covered employee unable to perform their duties because of a serious medical condition; qualifying-practitioner certificate required	Ontario — Long-term illness leave
BC serious personal illness or injury, since 28 November 2025	Up to 27 unpaid weeks in 52 weeks, regardless of service, where illness/injury prevents work for at least one week; doctor or nurse-practitioner certificate must state medical inability to work and required leave dates	BC — Serious illness leave; BC — Serious illness commencement

Quebec's two paid days are a shared annual pool, rather than separate paid allowances for illness and each family or caregiving ground. BC's serious-illness entitlement has no minimum service requirement, while Ontario's requires 13 consecutive weeks. Use the BC serious-illness leave guidance when checking eligibility and certificate requirements for that leave.

Ontario employers cannot require a qualified health practitioner's certificate as evidence for ordinary ESA sick leave. Since 12 November 2025, BC's sick-note restriction covers the first two health-related absences in a calendar year, each lasting five consecutive days or fewer, subject to the prescribed qualifications. Each type of Part 6 health-related leave counts separately, and the leave belongs to the calendar year in which it starts. This short-absence restriction does not remove the certificate requirement for serious-illness leave.

Pregnancy, parental and other protected leaves

The pregnancy and parental schedules below concern protected time away from work. Income replacement under EI or QPIP has separate rules, so a statutory leave duration does not establish the amount or duration of benefits, or employer-paid salary.

Ontario pregnancy leave	Ordinarily 17 weeks where the employee is also entitled to parental leave; the due date must be at least 13 weeks after employment began, with different end-date rules otherwise	Ontario — Employment Standards Act
Ontario parental leave	Ordinarily 61 weeks after pregnancy leave, or 63 weeks otherwise; generally requires 13 weeks' employment	Ontario — Employment Standards Act
BC pregnancy leave	Up to 17 unpaid weeks, with statutory extensions	BC — Employment Standards Act
BC parental leave after pregnancy leave	Up to 61 consecutive unpaid weeks; ordinarily begins immediately after pregnancy leave unless the employer and employee agree otherwise	BC — Employment Standards Act
BC other birth or adopting parent	Up to 62 consecutive unpaid weeks, beginning within 78 weeks of birth or placement; statutory extensions apply	BC — Employment Standards Act
Federal maternity and parental leave	Maternity up to 17 weeks; parental up to 63 weeks to care for a newborn or a child placed for adoption, subject to statutory limits and combined entitlements	Canada Labour Code
Quebec maternity/pregnancy/childbirth leave	Up to 18 consecutive unpaid weeks for the pregnant person or person who gave birth, regardless of continuous-service length; statutory extensions apply	CNESST — Maternity leave
Quebec parental leave	Up to 65 unpaid weeks for parents named on a newborn's birth record or adopting parents; ordinarily ends no later than 85 weeks after birth or placement	CNESST — Parental leave
Quebec father/non-birth-parent leave and stated adoption/surrogacy cases	Five consecutive unpaid weeks, regardless of continuous-service length; it cannot be transferred to or shared with the birth parent	CNESST — Paternity or non-birth-parent leave

For the stated Quebec maternity and father/non-birth-parent leaves, the employer must continue group-insurance and pension contributions if the employee continues theirs. Record the plan and contribution arrangements, and check applicable extensions and timing conditions before fixing the return date.

Federal Part III pregnancy-loss leave commenced on 12 December 2025. It can cover the pregnant person, their spouse or common-law partner, or an intended legal parent, with different durations according to the loss.

Federal pregnancy-loss leave after stillbirth	Up to eight weeks	ESDC — Federal leaves; Canada Gazette — Pregnancy-loss commencement
Federal pregnancy-loss leave in other cases	Up to three days	ESDC — Federal leaves
Federal pregnancy-loss leave pay	First three days paid after three consecutive months' continuous employment with the employer	ESDC — Federal leaves

Public holidays change across provincial borders

Plan the holiday calendar using the employee's provincial or federal regime, then check the separate eligibility and holiday-work rules.

BC statutory holidays	11 (BC): New Year's Day, Family Day, Good Friday, Victoria Day, Canada Day, British Columbia Day, Labour Day, National Day for Truth and Reconciliation, Thanksgiving Day, Remembrance Day and Christmas Day	BC — Employment Standards Act
Ontario public holidays	Nine: New Year's Day, Family Day, Good Friday, Victoria Day, Canada Day, Labour Day, Thanksgiving Day, Christmas Day and Boxing Day	Ontario — Public holidays
Federal Part III general holidays	Ten: New Year's Day, Good Friday, Victoria Day, Canada Day, Labour Day, National Day for Truth and Reconciliation, Thanksgiving Day, Remembrance Day, Christmas Day and Boxing Day	Canada Labour Code
Quebec general labour-standards holidays	Eight paid statutory holidays, subject to the applicable conditions	CNESST — Statutory holidays

BC's list includes British Columbia Day, Remembrance Day and National Day for Truth and Reconciliation. Ontario includes Boxing Day, which is absent from the BC statutory list. For a team working across these jurisdictions, record each person's applicable calendar before agreeing a shared office-closure schedule.

Use the CNESST statutory-holiday guidance for Quebec's holiday dates, eligibility and pay conditions. The federal row covers Canada Labour Code Part III employment.

Before processing holiday work, check:

• Whether the employee falls within the jurisdiction's holiday provisions or an applicable exemption.
• Any qualifying service, attendance or other eligibility conditions for that holiday entitlement.
• The applicable holiday-pay calculation and treatment of work on the holiday, including any permitted substitute-day arrangement.

Ordinary overtime rates do not establish holiday pay; use the applicable holiday rules for planned work and any agreed arrangement.

BC's Part 5 statutory-holiday exemption applies to the legally defined high technology professional category described in the working-time section. IT work or employment at a technology company alone does not qualify someone. Contractual holiday terms need separate review, and vacation and other time-off protections remain outside this exemption.

Termination: notice, severance and final wages

Assess statutory notice, separate severance and any greater rights before ending employment; an assignment ending requires its own review.

Statutory notice by tenure

BC's ordinary individual statutory reference is 0–8 weeks (BC statutory), in notice or compensation for length of service. The table maps completed consecutive service under section 63; statutory exceptions and greater entitlements must be assessed separately.

BC: fewer than three completed months	No section 63 notice/compensation amount	BC — Employment Standards Act
BC: three months to under 12 months	One week	BC — Employment Standards Act
BC: 12 months to under three years	Two weeks	BC — Employment Standards Act
BC: three years to under four years	Three weeks	BC — Employment Standards Act
BC: four years to under five years	Four weeks	BC — Employment Standards Act
BC: five years to under six years	Five weeks	BC — Employment Standards Act
BC: six years to under seven years	Six weeks	BC — Employment Standards Act
BC: seven years to under eight years	Seven weeks	BC — Employment Standards Act
BC: eight years or more	Eight weeks	BC — Employment Standards Act

Ontario, federal and Quebec ordinary individual notice bands differ:

Ontario: three months to under one year	One week	Ontario — Termination of employment
Ontario: one year to under three years	Two weeks	Ontario — Termination of employment
Ontario: three years or more	Three weeks at three completed years, plus one week per additional completed year, capped at eight weeks at eight years	Ontario — Termination of employment
Federal: three consecutive months to under three years	Two weeks	Canada Labour Code
Federal: three consecutive years or more	Three weeks at three completed years, plus one week per additional completed year, capped at eight weeks at eight years	Canada Labour Code
Quebec: three months to under one year	One week	CNESST — Termination notice
Quebec: one year to under five years	Two weeks	CNESST — Termination notice
Quebec: five years to under 10 years	Four weeks	CNESST — Termination notice
Quebec: 10 years or more	Eight weeks	CNESST — Termination notice

Apply each regime's eligibility and exceptions to these individual statutory floors. Employment contracts and other rights can create greater entitlements.

Severance and greater rights

Ontario ESA severance is separate from termination notice or pay. An employee whose employment is severed may qualify after five or more years with the employer, including employment that was noncontinuous or inactive, where the employer meets either condition:

• Global payroll of at least CAD 2.5 million.
• Severance of 50 or more employees in six months because all or part of the business permanently closes.

For an eligible employee, multiply regular weekly wages by completed years of employment plus completed months of the unfinished year divided by 12. Statutory severance is capped at 26 weeks, with eligibility assessed separately from individual notice.

Federal statutory severance has a different test. After 12 consecutive months' continuous employment, it is the greater of two days' regular wages per completed year of continuous employment and five days' wages, except dismissal for just cause. Eligible federal employees with 12 consecutive months' service who are not under a collective agreement may also have unjust-dismissal rights; complying with statutory notice and severance does not extinguish those rights or rule out reinstatement.

For Ontario indefinite-term employment, common-law reasonable notice or pay in lieu can apply unless an enforceable contractual provision limits termination entitlements to statutory minimums. Review the contract before treating the table as the final liability. Quebec requires a separate civil-law assessment of contractual and reasonable-notice rights; its statutory schedule is not a total-liability estimate.

Final payroll, assignment end and transfers

Final-wage deadlines are distinct from the notice and severance calculations.

Ontario final wages	By the later of seven days after employment ends and the next regular payday	Ontario — Employment Standards Act
BC employer-initiated termination	All wages owing within 48 hours	BC — Employment Standards Act
BC employee-initiated end	All wages owing within six days	BC — Employment Standards Act

For a qualifying Ontario temporary-help-agency assignment originally estimated to last at least three months, ending it early generally requires one week's written notice or pay in lieu from the agency, subject to alternative-assignment and other statutory exceptions. That assignment rule is separate from employment termination and does not establish a maximum assignment duration. In an employer of record arrangement, check the assignment, employment and client–provider terms before deciding which relationship is ending.

A provider change's effect on service depends on the arrangement and service history. Compare the recognised service date, accrued balances and termination terms before changing the employing business. A continuous, uninterrupted relationship with the same client is relevant, and a client found to be a true or common employer can retain common-law termination-notice exposure.

EI Pilot 25 has applied since 11 October 2026. It permits the Commission to waive the waiting period for benefit periods beginning between 11 October 2026 and 9 October 2027. For the pilot's specified EI purposes, earnings paid or payable because of a layoff or separation are disregarded if either:

• The benefit period begins within that date range.
• The first week to which those earnings would otherwise be allocated falls within that date range.

Either condition can apply for this EI treatment. Employer notice, severance and final wages remain separate obligations.

Recent changes employers need to plan for

Apply each change to its jurisdiction, effective date and eligibility conditions when updating recruitment, leave and payroll procedures.

• 19 June 2025 — Ontario long-term illness leave began for eligible ESA employees with 13 consecutive weeks' service and a qualifying certificate.
• 1 July 2025 — Ontario's written job-information duty began for covered employers with at least 25 employees on the new employee's first day. Prepare the information before that day, or as soon afterward as reasonably possible if advance provision is impracticable; the onboarding section distinguishes assignment employees.
• 12 November 2025 — BC introduced the sick-note restriction for the first two short health-related absences in a calendar year, each five consecutive days or fewer, subject to its qualifications. Keep that rule separate from the serious-illness certificate requirement.
• 28 November 2025 — BC serious personal illness or injury leave took effect, with no minimum service requirement where the covered employee cannot work for at least one week.
• 12 December 2025 — Federal Part III pregnancy-loss leave commenced, with separate stillbirth/other-loss durations and a service test for paid days.
• 1 January 2026 — Ontario's publicly advertised job-posting rules began for covered employers with at least 25 employees on the posting date. The recruitment disclosures, applicant updates and retention duties use the posting-date test, separate from first-day information duties.
• 1 January 2026 — Ontario agency/recruiter licence applications submitted from this date carry a CAD 1,500 application fee, and resulting licences generally last two years. Check the relevant application cohort and transition rules when reviewing a provider; licence validity is separate from an employee's assignment length.
• 1 April 2026 — The federal private-sector minimum wage became CAD 18.15 / hour, with the higher provincial or territorial floor prevailing where applicable.
• 1 June 2026 — BC's general hourly minimum became CAD 18.25.
• First payroll in July 2026 — CRA Option 1 began using the 6.14% BC lowest-bracket second-half catch-up rate. The annual first-bracket rate is 5.60%; Option 2 is not prorated.
• 18 September 2026 — BC announced a pause to the professional-services PST expansion planned for 1 October 2026. The pause concerns accounting, architectural, engineering, geoscience, non-residential real estate and security services; it does not establish a blanket software exemption.
• 1 October 2026 — Ontario's general minimum wage became CAD 17.95 / hour.
• 11 October 2026 — EI Pilot 25 took effect. Use the termination section's waiting-period and separation-earnings conditions, including the alternative benefit-period-start or first-allocation-week triggers; the pilot does not change required employer notice, severance or final wages.

Changes scheduled or still awaiting commencement

The 2027 EI contribution-year change takes effect on 1 January 2027. Its maximum annual insurable earnings are CAD 70,800, with different rates and maxima according to payroll treatment:

• Outside Quebec: employee EI 1.64%; employee annual maximum CAD 1,161.12; standard employer annual maximum CAD 1,625.57.
• Quebec: employee EI 1.29%; employee annual maximum CAD 913.32; standard employer annual maximum CAD 1,278.65.

Use these inputs for 2027 payroll; the salary-and-contribution illustrations retain 2026 rules.

Bill C-30 received royal assent on 18 June 2026 as Statutes of Canada 2026, chapter 22. Section 43 enacts a 4.75% CPP base component for each employee and employer for 2027 onward, but section 44(2) requires commencement by Governor-in-Council order. The Canada Pension Plan consolidation lists sections 41–43 under amendments not in force, so confirm commencement before treating the base change as an operative payroll input. That base component is separate from additional CPP contributions; no new CPP ceiling or combined 2027 rate is applied to the illustrations.

For BC's 2027–2030 tax years, indexation of personal income-tax brackets is paused at 2026 levels and resumes for 2031. CRA's BC guidance also includes non-refundable tax credits in the pause, except the renter's tax credit.

What a mistake costs and who pays

The amount depends on the liable party, unpaid obligation, contravention and proceeding.

Party	Risk	Amount
Ontario temporary help agency and client	The agency fails to pay covered wages owing for an assignment in the relevant pay period; statutory joint and several liability can apply	Unpaid regular wages, overtime, public holiday pay and premium pay earned on the assignment, within the statutory scope
Ontario unlicensed agency/recruiter, or party knowingly using covered unlicensed services	An employment standards officer issues a notice of contravention for a listed licensing prohibition	CAD 15,000 for a first contravention; CAD 25,000 for a second in three years; CAD 50,000 for a third in three years
Individual prosecuted under Ontario's ESA	Conviction for an offence under the ESA, regulations or a covered order/direction requirement	Up to CAD 100,000 fine, up to 12 months' imprisonment, or both
Corporation prosecuted under Ontario's ESA	Conviction, with the maximum determined by previous convictions	Up to CAD 100,000 initially; CAD 250,000 with one previous conviction; CAD 500,000 with more than one
BC employer subject to an employment standards director's order	A wage or employment-standards breach leads to compliance/remedy requirements	Wages and remedies ordered, including a payroll service at the employer's expense where required
Employer that missed required CPP/EI deductions	Required employee CPP contributions or EI premiums were not deducted	Employer and employee shares owing, plus penalties and interest under the applicable CRA rules
Employer assessed for failure to deduct CPP/EI/income tax	CRA assesses a deduction failure; the repeat-rate condition is separate	10% of the amount not deducted; 20% for a second or later assessed failure in the same calendar year only if knowing or grossly negligent

The Ontario licensing notice amounts are administrative penalties, while the ESA prosecution figures are conviction maxima. Wage debts and remedial orders have a different basis again. Assess the actual trigger and proceeding instead of adding unrelated maxima into one hypothetical bill.

When employee status means CPP/EI deductions were required but not made, the employer must address both shares owing. Recovery of missed employee contributions from later pay is limited: the recovered contribution or premium per payment cannot exceed what should have been deducted from that payment, and amounts outstanding for more than 12 months cannot be recovered. Income-tax deductions cannot be adjusted to cover the CPP/EI shortfall. Use the CRA correction guidance before attempting a recovery from later payroll.

The deduction-failure percentages apply to amounts not deducted. Failure to remit amounts already deducted has separate rules and is not covered by those percentages. Quebec's pension and parental-insurance liability also requires a separate assessment.

Termination exposure can extend beyond the statutory notice table. Ontario indefinite-term contracts require review of any enforceable limit on common-law notice, and a client found to be a true or common employer can retain termination-notice exposure in an agency arrangement. A contract's allocation of duties should therefore be assessed alongside the statutory wage-liability rules, rather than treated as proof that the client has no remaining liability.

To reduce the chance of an avoidable shortfall:

• Assess the actual working relationship before using a contractor classification, then revisit material changes in duties or control.
• Check the applicable agency/recruiter licence status before engaging covered services.
• Reconcile earnings, deductions and remittances, using the assigned remittance frequency and the correct payroll treatment.
• Review service history and termination terms before ending employment or an assignment, with responsibility for the final records and wages clearly assigned.

Frequently asked questions

Can I hire in Canada without setting up a company there?

A foreign business can employ Canadians directly using nonresident employer registration instead of forming a separate Canadian legal entity. Use the appropriate CRA payroll-registration channel and assess provincial registration, corporate tax, workers compensation and work authorisation separately. An employer of record is another employment route, with the provider's activities and applicable provincial rules requiring review.

What is the minimum wage in Canada?

The floor depends on the employment jurisdiction. Federally regulated private-sector employment has a CAD 18.15 / hour minimum from 1 April 2026, with a higher applicable provincial or territorial rate prevailing. Provincial examples are BC's CAD 18.25 / hour from 1 June 2026, Ontario's CAD 17.95 / hour from 1 October 2026 and Quebec's general CAD 16.60 / hour. Check special categories and exemptions before applying a general rate.

How much does it cost an employer to hire someone in Canada?

For an ordinary full-year CPP/EI-covered employee with one employer outside Quebec, hypothetical annual gross of CAD 100,006.40 produces a 2026 salary-plus-employer-CPP/CPP2/EI subtotal of CAD 106,225.15. That illustration uses the national 2023–2024 developer median of CAD 48.08 / hour for 40 paid hours per week and 52 paid weeks, with standard EI and no premium reduction. Those employer contribution components equal 6.22% of the hypothetical gross. Provincial levies, workers-compensation premiums, vacation and other leave arrangements, benefits and provider charges must be assessed separately for the actual budget.

What is the difference between the average and median salary?

A mean averages the observations; SEPH calculates its weekly earnings mean by dividing gross taxable weekly payroll by the number of in-scope payroll employees. A median describes the midpoint of a wage distribution, such as Job Bank's national developer median of CAD 48.08 / hour for 2023–2024. SEPH's July 2026 mean was CAD 1,347.14 per week including overtime, preliminary and seasonally adjusted, across its covered full-time, part-time and casual or temporary payroll population. The two figures differ in statistic, unit, period and population, so they should not be treated as alternative estimates of the same job's salary.

How do salaries in Toronto compare to the rest of Canada?

For software developers and programmers in Job Bank's 2023–2024 data, Toronto Region's median of CAD 48.08 / hour matches the national occupational median. In the other selected regions, the medians are CAD 52.40 in Lower Mainland–Southwest, CAD 50.26 in Ottawa and CAD 45.67 in Montréal, all per hour. These regional wage figures were updated on 19 November 2025 and do not establish citywide annual salaries, seniority bands or current offers.

How many breaks do you get in an eight-hour shift in Canada?

The shift length alone does not establish a single Canadian break rule. Covered Ontario employees must have 30 minutes free from work before exceeding five consecutive working hours, with an agreement permitting two periods totalling 30 minutes within that interval. Ordinary covered BC employees need a meal break of at least 30 minutes before exceeding five consecutive working hours, with required work or availability counted as time worked; assess the defined technology-professional exemption separately. Covered federal employees receive an unsplit 30-minute break during each five consecutive working hours, unpaid unless kept at the employer's disposal, subject to the applicable hours-of-work modifications and manager/professional exclusions.

Can a Canadian consultant work only for us and use our laptop?

Those facts can be compatible with independent IT services: CRA can treat one payer at a time and secure client equipment as neutral where they arise from the work's nature rather than the payer's control or right to control. They do not establish independent status by themselves, so assess the whole working relationship and applicable provincial rules. The Canada contractor guide explains the classification and documentation checks for that arrangement.

Does moving an employee to an employer of record reset their service?

Service recognition depends on the facts and agreements governing the transfer. Review the original service date, balances, benefits and termination terms, particularly where the person has continued working without interruption for the same client. A client found to be a true or common employer can retain common-law termination-notice exposure, and Ontario statutory minimums generally cannot be waived.

Sources

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3. 4dev.com. The platform for compliant contractor work worldwide. Accessed 14 October 2026.
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20. Nova Scotia. Minimum Wage Order (General) - Labour Standards Code (Nova Scotia) (Nova Scotia — General minimum wage order). Accessed 14 October 2026.
21. Prince Edward Island. Minimum Wage Order (Board and Lodging) (PEI — Minimum wage order). Accessed 14 October 2026.
22. Saskatchewan. Minimum Wage and Reporting for Duty Pay (Saskatchewan — Minimum wage and reporting pay). Accessed 14 October 2026.
23. Northwest Territories. NWT Minimum Wage Set to Increase Sept 1, 2026 (NWT — Minimum wage September 2026). Accessed 14 October 2026.
24. Nunavut. Labour and employment standards in Nunavut (Nunavut — Labour and employment standards). Accessed 14 October 2026.
25. Yukon. The Yukon’s minimum wage set to increase (Yukon — Minimum wage April 2026). Accessed 14 October 2026.
26. CRA. Current year tax rates and income brackets 2026 (CRA — Income tax brackets 2026). Accessed 14 October 2026.
27. Revenu Québec. Principaux changements pour année 2026 (Revenu Québec — Employer changes 2026). Accessed 14 October 2026.
28. British Columbia. Personal income tax rates (BC — Personal income tax rates). Accessed 14 October 2026.
29. CRA. Payroll Deductions Formulas - 123rd Edition Effective July 1, 2026 (CRA — July 2026 payroll formulas). Accessed 14 October 2026.
30. CRA. CPP contribution rates, maximums and exemptions (CRA — CPP rates). Accessed 14 October 2026.
31. CRA. Second additional CPP contribution rates and maximums (CRA — CPP2 rates). Accessed 14 October 2026.
32. CRA. EI premium rates and maximums (CRA — EI rates). Accessed 14 October 2026.
33. ESDC. Information for employers (ESDC — Employer EI). Accessed 14 October 2026.
34. Statistics Canada. Average weekly earnings July 2026 (Statistics Canada — Weekly earnings July 2026). Accessed 14 October 2026.
35. Statistics Canada. Guide to the Survey of Employment, Payrolls and Hours (Statistics Canada — SEPH methodology). Accessed 14 October 2026.
36. Ontario. Employment Standards Act 2000 (Ontario — Employment Standards Act). Accessed 14 October 2026.
37. British Columbia. Employment Standards Act (BC — Employment Standards Act). Accessed 14 October 2026.
38. Justice Canada. Canada Labour Code. Accessed 14 October 2026.
39. Ontario. Overtime pay (Ontario — Overtime pay). Accessed 14 October 2026.
40. British Columbia. Employment Standards Regulation (BC — Employment Standards Regulation). Accessed 14 October 2026.
41. Ontario. Hours of work | Your guide to the Employment Standards Act (Ontario — Hours of work). Accessed 14 October 2026.
42. British Columbia. Employment Standards Act (BC — ESA meal and rest provisions). Accessed 14 October 2026.
43. ESDC. Breaks and rest period - Federally regulated workplaces (ESDC — Federal breaks and rest). Accessed 14 October 2026.
44. Ontario. Vacation (Ontario — Vacation). Accessed 14 October 2026.
45. CNESST. Vacances annuelles (CNESST — Annual vacation). Accessed 14 October 2026.
46. CNESST. Maladie ou accident non lié au travail (CNESST — Illness or non-work accident). Accessed 14 October 2026.
47. Ontario. Long-term illness leave (Ontario — Long-term illness leave). Accessed 14 October 2026.
48. British Columbia. Serious Personal Illness or Injury - Up to 27 Weeks Unpaid Leave - Act Part 6, Section 49.01 (BC — Serious illness leave). Accessed 14 October 2026.
49. British Columbia. New job-protected medical leave in effect for workers facing serious illness, injury (BC — Serious illness commencement). Accessed 14 October 2026.
50. CNESST. Congé de maternité (CNESST — Maternity leave). Accessed 14 October 2026.
51. CNESST. Congé parental (CNESST — Parental leave). Accessed 14 October 2026.
52. CNESST. Congé de paternité (CNESST — Paternity or non-birth-parent leave). Accessed 14 October 2026.
53. ESDC. Types of leaves you can receive as an employee working in federally regulated industries and workplaces (ESDC — Federal leaves). Accessed 14 October 2026.
54. Canada Gazette. Canada Gazette, Part 2, Volume 159, Number 26: Regulations Amending Certain Regulations Made Under the Canada Labour Code (Leave Related to Pregnancy Loss, Bereavement Leave and Leave for Placement of Child) (Canada Gazette — Pregnancy-loss commencement). Accessed 14 October 2026.
55. Ontario. Public holidays (Ontario — Public holidays). Accessed 14 October 2026.
56. CNESST. Jours fériés (CNESST — Statutory holidays). Accessed 14 October 2026.
57. Ontario. Termination of employment (Ontario — Termination of employment). Accessed 14 October 2026.
58. CNESST. Avis de cessation emploi et indemnité (CNESST — Termination notice). Accessed 14 October 2026.
59. Department of Justice Canada. Canada Pension Plan, section 14. Accessed 14 October 2026.
60. Canada Revenue Agency. Make corrections before filing. Accessed 14 October 2026.
61. Ogletree Deakins. Three Options for Non-Canadian Employers Hiring Remote Employees in Canada. Accessed 14 October 2026.
62. CRA. Determine if you need to register. Accessed 14 October 2026.
63. Canada Revenue Agency. Employment status: Employee or self-employed. Accessed 14 October 2026.
64. 4dev.com. Complete list of countries available for contractors. Accessed 14 October 2026.
65. British Columbia. Employer health tax overview. Accessed 14 October 2026.
66. WSIB. 2026 premium rates. Accessed 14 October 2026.
67. British Columbia. Employment agency licensing. Accessed 14 October 2026.
68. CNESST. Registre des titulaires de permis agence. Accessed 14 October 2026.
69. Borden Ladner Gervais. Labour and Employment Law in Ontario: A Practical Guide. Accessed 14 October 2026.
70. Justice Canada. Immigration and Refugee Protection Regulations. Accessed 14 October 2026.
71. CRA. Employees whose province of employment is Quebec - Calculate payroll deductions and contributions. Accessed 14 October 2026.
72. Canada Revenue Agency. Contract formed outside of Quebec. Accessed 14 October 2026.
73. Canada Revenue Agency. Contract formed in Quebec. Accessed 14 October 2026.
74. Government of British Columbia. Employee or independent contractor. Accessed 14 October 2026.
75. Government of British Columbia. Choose your business structure in B.C.. Accessed 14 October 2026.
76. Department of Justice Canada. Excise Tax Act, subsection 148(1). Accessed 14 October 2026.
77. Borden Ladner Gervais LLP. A "Dependent Contractor" got what…??. Accessed 14 October 2026.
78. Osler, Hoskin & Harcourt LLP. A client may terminate a service agreement to further its own commercial interests, Superior Court of Québec rules. Accessed 14 October 2026.
79. ESDC. Federally regulated industries and workplaces. Accessed 14 October 2026.
80. Statistics Canada. Labour Force Survey September 2026. Accessed 14 October 2026.
81. Ontario. Recent changes | Your guide to the Employment Standards Act. Accessed 14 October 2026.
82. Hicks Morley. New Year, New Rules: Ontario Job Posting Requirements Take Effect January 1, 2026. Accessed 14 October 2026.
83. Office québécois de la langue française. Langue du travail. Accessed 14 October 2026.
84. Ontario. Mandatory information for employees | Your guide to the Employment Standards Act. Accessed 14 October 2026.
85. CNESST. Employment contract. Accessed 14 October 2026.
86. Borden Ladner Gervais. Bill 96: impacts of French language obligations on employers. Accessed 14 October 2026.
87. Filion Wakely Thorup Angeletti. Outsourced Work May Not Mean Outsourced Liability: Managing Potential Risk with Temporary Workers. Accessed 14 October 2026.
88. Service Canada. The Social Insurance Number (SIN) Code of Practice. Accessed 14 October 2026.
89. Ontario Human Rights Commission. Discrimination based on disability and the duty to accommodate: Information for employers. Accessed 14 October 2026.
90. Ontario. Code of practice to address workplace harassment. Accessed 14 October 2026.
91. Ontario. Part III: Duties of employers and other persons | Guide to the Occupational Health and Safety Act. Accessed 14 October 2026.
92. Ontario. Collective bargaining. Accessed 14 October 2026.
93. Office of the Privacy Commissioner of Canada. Privacy in the Workplace. Accessed 14 October 2026.
94. British Columbia. Personal Information Protection Act. Accessed 14 October 2026.
95. Service Canada. Employers: How to complete the record of employment (ROE) form. Accessed 14 October 2026.
96. Justice Canada. Copyright Act. Accessed 14 October 2026.
97. British Columbia. New rules on sick notes eliminate unnecessary paperwork. Accessed 14 October 2026.
98. Ontario. Severance pay. Accessed 14 October 2026.
99. Canada Gazette. Canada Gazette, Part 2, Volume 160, Number 20: Regulations Amending the Employment Insurance Regulations (Pilot Project No. 25). Accessed 14 October 2026.
100. Ontario. Licensing for temporary help agencies and recruiters. Accessed 14 October 2026.
101. Government of British Columbia. Notice to providers of professional services. Accessed 14 October 2026.
102. Government of British Columbia, Office of the Premier. B.C. pauses PST expansion to professional services amid ongoing trade uncertainty. Accessed 14 October 2026.
103. ESDC/Canada Employment Insurance Commission. Canada Employment Insurance Commission confirms 2027 Employment Insurance premium rate. Accessed 14 October 2026.
104. Parliament of Canada. C-30 (45-1) - LEGISinfo - Parliament of Canada. Accessed 14 October 2026.
105. Justice Canada. Spring Economic Update 2026 Implementation Act (S.C. 2026, c. 22). Accessed 14 October 2026.
106. Canada Revenue Agency. Understand the impact of employment status. Accessed 14 October 2026.
107. Canada Revenue Agency. Employers’ Guide – Payroll Deductions and Remittances. Accessed 14 October 2026.
108. Canada Revenue Agency. Information technology consultants. Accessed 14 October 2026.