horizons logo
Start hiring

Social security
in Canada.

SALARY PAYMENT IN Canadian Dollar (CAD, $)

CONTRACT LANGUAGES English

PAYROLL TAX 7.91%

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours

Hire and pay talents
with Horizons in
180+ countries

Social security in Canada – Overview

Canada’s social security program is considered world-leading, offering universal healthcare, a pension program, unemployment, and more. Both employees and employers much contribute to social security in Canada, with each contribution a percentage of the employee’s gross salary at each pay period. Read more below. 

What does the social security system in Canada cover?

Canada’s social security system covers social welfare issues including; health, unemployment insurance and retirement. Most of these issues are covered under federal laws but provincial policies, programs, and laws also supplement the social security system in Canada. 

What are the mandatory contributions for employees to social security in Canada?

Employees contribute to Canada’s social security system through payroll taxes. 

Mandatory contributions for employees include; Canada Pension Plan (CPP), Employment Insurance (EI) and Worker Insurance. 

What are the mandatory contributions for employers to social security in Canada?

Mandatory contributions to social security for employers in Canada include: Canada Pension Plan (CPP); Employment Insurance (EI); Employer Health Tax (EHT); and Worker Insurance. 

Taken together, employer contributions amount to around 10% of the employee’s salary. 

How do mandatory contributions compare to the surrounding countries?

The mandatory contributions for employers in Canada are, on average, higher than those for employers in the United States. 

Mandatory employer contributions in Canada equate to ≈10% whereas in the United States, mandatory employer contributions equate to around ≈8% of the employee’s salary. 

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

Employer contributions equate to ≈10% of the employee’s annual salary. 

Social welfare issues including; health, unemployment insurance and retirement.

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

Get started with Horizons