Canada: Payroll & Employment Facts
Verified statutory employment facts for Canada, each with its official source and the date it applies from. This is our reference record. For provider choice and hiring advice, see the Canada employer-of-record guide and the Canada country hub.
What is the minimum wage in Canada?
| National minimum wage |
$18.15 / hour
|
|---|---|
| Next review date |
2027-04-01
|
What employer social contributions apply in Canada?
Rates are a percentage of gross wage, applied up to the annual contribution ceiling.
| Employer social security rate |
5.95%
|
|---|---|
| Pension |
5.95%
|
| Healthcare |
Not available
|
| Annual contribution ceiling |
Not available
|
| Total employer burden |
8.27%
|
What notice and leave rules apply in Canada?
Statutory minimum notice the employer must give, by completed length of service.
| Length of service | Employer notice |
|---|---|
| 3+ months | 2 weeks |
| Payment in lieu of notice (PILON) |
Permitted
|
|---|---|
| Minimum annual leave |
10 days
|
| Annual leave includes public holidays |
No
|
| Public holidays per year |
10 days
|
Is 13th-month pay required in Canada?
None of the following are mandated by statute; they may still arise from a contract or collective agreement.
| Thirteenth-month pay required |
No
|
|---|---|
| Profit sharing required |
No
|
| Holiday bonus required |
No
|
How is severance calculated in Canada?
| Formula |
The greater of: two days' regular wages for each completed year of service, or five days' regular wages.
|
|---|---|
| Per-year multiplier |
0.4 weeks of regular wages
|
| Minimum qualifying tenure |
12 months
|
| Calculation base |
Regular rate of wages
|
Worked example
This example applies the federal Canada Labour Code, which covers federally regulated employers only, such as banks, airlines and telecoms; most employers fall under their province's employment standards act, which sets different rules. An employee of a federally regulated employer with 5 years of continuous service (the Code requires at least 12 consecutive months) and an annual salary of £30,000 (approx. CAD 51,000 based on an exchange rate of 1.70) is terminated. 1. Determine daily wage: CAD 51,000 / 52 weeks / 5 days = CAD 196.1538 per day, rounded only at the end. 2. Calculate severance based on years of service: 2 days' pay * 5 years = 10 days' pay. 3. Determine minimum severance: 5 days' pay. 4. Select the greater amount: 10 days' pay is greater than 5 days' pay. 5. Final severance pay: 10 days * CAD 196.1538 = CAD 1,961.54. Notice of termination, or pay in lieu of notice, is a separate entitlement on top of this.