Hire and pay employees in
Canada, hassle-free

With Deel, your business can easily hire employees in Canada. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in Canada is 1 day with Deel.

Currency

Canadian Dollar (CAD)

Capital

Ottawa

Official Language

French and English

Payroll Cycle

Bi-Monthly

Onboard, pay and manage employees in Canada with Deel.

Usually, to hire in Canada, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Deel lets you hire employees in Canada quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.

Download the Guide

All the necessary benefits for Canada
built right in

Deel allows you to provide localized benefits for employees in Canada within minutes. All in one manageable online dashboard.

  • Pension Fund
  • Disability Insurance
  • Healthcare - ManuLife (Mandatory - Bronze)
  • Pension - Wealthsimple (optional)
  • Healthcare - ManuLife (Optional - Silver and Gold plans)

Our quickstart guide to hiring in Canada

Navigate the tabs below to learn everything you need to know about hiring an employee in Canada

Minimum Wage Requirements

The federal minimum wage in Canada is CA$16.55 per hour. For employees working in provinces or territories where general minimum wage is higher, the higher minimum wage will apply.

Minimum wage in Canada differs by Province / Territory.

Please reference the corresponding information for current wages:

Provinces

Territories

Individual Income Tax

Individuals pay federal taxes as well as provincial taxes based on where they are located. Federal individual income tax ranges from 15% to 33%. Income tax is calculated according to progressive rates.

Income (Portion)

Tax Rate

Taxable income up to $53,359, plus

15%

Taxable income over $53,359 up to $106,717, plus

20.5%

Taxable income over $106,717 up to $165,430, plus

26% 

Taxable income over $165,430 up to $235,675, plus

29%

Taxable income over $235,675, plus

33%


For provincial and territorial tax rates, please see Canada Revenue Agency and Revenu Quebec.


Payroll Cost

The employer cost is roughly estimated between 8.25% and 14.93% depending on employee’s province of residence

This is the employer cost for Ontario:

  • Quebec Pension Plan (Quebec only) - 6.40%
  • Quebec Parental Insurance Plan (Quebec only) - 0.69%
  • WSDRF - Workforce Skills Development and Recognition Fund (Quebec Only) - 1.0%
  • Canada Pension Plan (excluding Quebec) - 5.95%
  • Employment Health Tax - 1.95% - 4.26% depending on provincial government
  • Employment Insurance -  1.83%-2.30%
  • Worker's Compensation - 0.18%-1.28% depending on provincial government
  • Mandatory Private Health Insurance - CA$124- CA$420 
  • Health Insurance admin fee - USD 15

Mandatory Registered Retirement Savings Plan (Pension Plan): Employers must offer this plan but may choose to opt out of the employer contributions

Fees:

  • US $10/month if employees make a contribution or hold a balance in the plan
  • US $15/month if employers make a contribution

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday. There are specific requirements depending on the province as well as the industry. Overtime pay is generally mandatory. Certain position types and professions are exempt from overtime requirements such as employees with managerial responsibilities. Exemptions are complex and depend upon the province where the employee is located. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 8 hours of overtime per week. For additional hours, employees are paid 150% of their salary.


Part-time employees can work a maximum of 30 hours per week. Employees working more than 30 hours per week are considered full-time. 

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Hiring in Canada, hassle-free

With Deel, your business can easily hire employees in Canada with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Canada and 150+ countries.

Group (8)

Starting at 599 USD

Management fee

Group (9)

8.25%-14.93%

Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in Canada?

View our Employee Cost Calculator
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