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Employee benefits
in Canada.

SALARY PAYMENT IN Canadian Dollar (CAD, $)

CONTRACT LANGUAGES English

PAYROLL TAX 7.91%

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours

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Healthcare in Canada

Canadian employers provide a number of healthcare-related employee benefits. Although Canada operates a public healthcare system that’s open to all residents, many employers offer private health insurance as part of their efforts to attract top talent.

Provincial and territorial governments also mandate health-related employee benefits. For example, in Ontario, the Employer Health Tax (EHT) is a payroll tax that funds the provincial Medicare system. EHT rates range from 0,98% to 1.95% of the total payroll amount. 

Employers generally require documentation from a healthcare practitioner for any periods of absence lasting longer than 3 days. However, employees are eligible for up to 17 weeks of unpaid leave for medical issues related to illness or injury.

Pensions in Canada

The Canada Pension Plan (CPP) is a mandatory public pension fund that requires both employers and employees to make monthly contributions. 

The CPP pays out pensions to eligible recipients who are over the age of 60. There is no minimum contribution amount required to receive benefits, anyone who has made contributions to the plan for any length of time may be eligible. 

In Ontario, the CPP contribution totals 11.4% of the employees total salary, split 50/50 between employer and employee, i.e. 5.7% each with the maximum contribution set at CAD$3,499. 

Disability in Canada

Disability insurance tends to be offered on a private basis in Canada. Commonly referred to as Workers’ Compensation Boards, these types of plans are separate from other forms of health insurance and government-provided protections systems, as they are specifically designed to provide insurance for workplace injuries and illnesses.  

Unemployment in Canada

Periods of unemployment are covered by Employment Insurance (EI), with individuals being entitled to up to 15 weeks of financial support. 

 

The amount that the employer contributes to EI varies across provinces and territories, however, generally, the employer contributes ≈1.4 times the amount that the employee does.

For example, in Ontario employer contributions to EI are set at 2.212% with the max. contribution being CAD$1,333.84 whilst the employer contributes 1.58% with the max. contribution being CAD$952.74. 

Hiring in Canada, Made Easy

Your business can easily hire employees in Canada without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

Mandatory employee benefits include pension plans whereby both employees, employers, and self-employed people must make contributions. As well as the mandatory insurance contributions, statutory leave such as paid time off, sick leave, maternity, and paternity leave are all offered as employee benefits.

Horizons offers Group Retirement Solutions and Group Medical, Life and Disability Insurance to any employees hired in Canada. 

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