🇨🇦 Hire in Canada: cost, rules and best EOR options
Highly educated English and French workforce with strong tech clusters in Toronto, Vancouver, Montreal and Waterloo, fully aligned with US time zones.
- Employer on-costs: 5–13% of gross salary (on a $60,000 salary, about $63,000–$67,800 total)
- EOR onboarding: Not verified from a retrieved provider source; own entity: Not verified from a retrieved source
- Probation: Typically about 3 months (Remote); Quebec has enhanced protection after two years' service.
- Currency: Canadian dollar (CAD)
- Data confidence: medium, verified 2026-10-05
Get matched for CanadaCalculate cost
What it costs to employ someone in Canada
Employer on-costs run roughly 5–13% on top of gross salary. Recomputed 5 Oct 2026. Confirmed on canada.ca: 2026 CPP employer 5.95% on earnings between the CAD 3,500 exemption and CAD 74,600 (max CAD 4,230.45); EI employer 1.63% x 1.4 = 2.282% up to CAD 68,900 insurable earnings (max CAD 1,572.30); Quebec EI 1.30% x 1.4 = 1.82% (plus QPP and QPIP, not verified). PwC adds CPP2 (employer 4% on earnings from CAD 74,600 to 85,000, max CAD 416.00; PwC combined CPP maximum CAD 4,646.45 = 4,230.45 + 416.00). Examples: CAD 60,000 salary: CPP (60,000 - 3,500) x 5.95% = 3,361.75 + EI 60,000 x 2.282% = 1,369.20 = 4,730.95 = 7.9%. CAD 100,000: 4,230.45 + 416.00 + 1,572.30 = 6,218.75 = 6.2%. CAD 150,000: 4.1%. Provincial payroll taxes add 0.98%-1.95% (Ontario/BC Employer Health Tax, above a CAD 1M exemption), 2.15%-4.3% (Manitoba), 2% (Newfoundland and Labrador, above CAD 2M) and 1.25%-4.26% (Quebec Health Services Fund) per secondary sources; workers' compensation roughly 0.5%-3%+. High end: 7.9% + about 2% provincial + about 3% WCB = 13%. Vacation pay of 4%/6% is part of salary. Derived estimate.
| Contribution | Rate | Notes |
|---|---|---|
| CPP (Canada Pension Plan) | 5.95% | Employer share on earnings from CAD 3,500 to CAD 74,600 (max CAD 4,230.45, canada.ca); CPP2 4% on CAD 74,600-85,000 (max CAD 416.00 employer, PwC). Quebec uses QPP (rates not verified). |
| EI (Employment Insurance) | 2.282% (1.4 x 1.63%) | 2026: employee rate 1.63%, employer 1.4 x = 2.282%, insurable earnings up to CAD 68,900 (canada.ca). Quebec: 1.30% / 1.82% plus QPIP. |
| Provincial employer health/payroll tax (EHT etc.) | Roughly 0.98%-1.95% (Ontario, BC), 2.15%-4.3% (Manitoba), 2% (Newfoundland and Labrador), 1.25%-4.26% (Quebec) | Rates depend on total payroll and exemptions (secondary source: CFIB/remotepass summaries); not verified against provincial sites. |
| Workers' compensation (WSIB/WCB/CNESST) | Varies by province and industry | Not verified rates |
Employer withholds federal and provincial income tax, employee CPP (5.95%) and EI and remits to CRA; Remote notes federal tax 15%-33%.
Mandatory benefits
- Paid vacation (2 weeks after one year, 3 weeks after five; provincial variations)
- Public holiday pay (5-9 days, provincial)
- Maternity (15 weeks) and parental leave (35 weeks) job protection (Remote)
- Statutory vacation pay 4% or 6%
- Termination notice or pay in lieu
Employment rules at a glance
| Payroll | Biweekly or semi-monthly (Remote uses 15th and end of month) |
|---|---|
| Probation | Typically about 3 months (Remote); Quebec has enhanced protection after two years' service. |
| Notice & severance | No at-will employment. Statutory notice or pay in lieu is provincial; Ontario ESA: 1 week per year of service up to 8 weeks (after 3 months), plus severance pay of 1 week per year up to 26 weeks for employees with 5+ years at employers with a CAD 2.5 million Ontario payroll (secondary legal summaries). Common-law reasonable notice can be much higher (up to about 24 months) and is not verified from a retrieved source. |
| Working time | Standard 40-hour week (Remote); overtime after 40-44 hours depending on province at 1.5x. |
| Paid leave | Minimum 2 weeks after one year, rising to 3 weeks after five years (Remote); public holidays vary by province (not verified count). |
| Minimum wage | Federal CAD 18.15/hour from 1 April 2026 (up from CAD 17.75; indexed to CPI, per Bloomberg Tax and other press; canada.ca page not fetched). Federal rate applies only to federally regulated employers; provincial rates differ. |
Termination
Without-cause dismissal needs notice or severance; Quebec and federally regulated employers have unjust-dismissal complaints. Wrongful dismissal claims use common-law notice.
Employee or contractor in Canada?
Misclassification risk exists (Remote). CRA and courts apply the control, tools, chance of profit/risk of loss and integration tests. Penalties include back CPP/EI, tax and interest (details not verified).
Compare contractor vs employee cost →
Hiring through an EOR in Canada
Non-resident employers can hire via an EOR or register a CRA payroll account; foreign entities may need provincial registration. Timelines not verified.
Typical onboarding: EOR Not verified from a retrieved provider source; own entity Not verified from a retrieved source. Six zones: Eastern UTC-5 (same as US Eastern) through Pacific; Newfoundland UTC-3:30.
Providers worth shortlisting
| Provider | Best for | EOR pricing | Coverage | |
|---|---|---|---|---|
| Deel | Companies that want one platform for contractors, EOR and a US PEO, with transparent per-seat list prices. | $599 per EOR employee per month (public list price, checked 2026-10-05) | 150+ countries (vendor claim, per Deel's own and third-party descriptions) | Visit Deel |
| Remote | Teams that want a published price for each product (EOR, global payroll, contractors, contractor of record, US PEO) and an affiliate program with 12-month revenue share. | $699 per employee/month (public list price, checked 2026-10-05) | 90+ countries for EOR (vendor pricing page claim) | Visit Remote |
| Rippling | Companies already running (or willing to adopt) a unified HR, IT and finance platform who want global hiring as an add-on module. | — | Visit Rippling | |
| Oyster | Distributed teams that want published EOR and contractor prices and a long-running affiliate program with tiered revenue share. | $699 per employee/month (public list price, checked 2026-10-05); annual discounts available; refundable deposit required | 120+ countries EOR; contractors in 180+ countries (vendor claim) | Visit Oyster |
| Papaya Global | Mid-size and larger companies that need multi-country payroll orchestration and workforce payments, and will go through a sales process. | 160+ countries (vendor claim as repeated on FlexOffers listing and third-party pages) | Visit Papaya Global | |
| Multiplier | Cost-conscious teams that want EOR priced below $500 per employee with an annual discount. | Third-party summary of Multiplier's pricing: EOR from $459/employee/month on annual contracts and $499 on monthly contracts (not confirmed; multiplier pricing page returned 403 to our fetch) | — | Visit Multiplier |
| Remofirst | Small teams that want the lowest published EOR starting price and a free contractor tier. | Starting at $199 per person/month (public list price, checked 2026-10-05); 'no hidden fees, setup fees, or minimum contract terms' per vendor page | 185+ countries for EOR (vendor claim) | Visit Remofirst |
| Pebl (formerly Velocity Global) | Companies that want an EOR with a tiered reseller/partner program and are comfortable with a recently rebranded vendor. | Third-party reports a flat $399 per employee/month (not confirmed on vendor page; hellopebl.com/pricing returned 404) | 185+ countries (third-party report) | Visit Pebl (formerly Velocity Global) |
Paying and covering your team in Canada
Related
- Hire Developers Abroad: Best Countries Compared (2026)
- EOR vs PEO vs own entity
- Contractor vs employee calculator
FAQ
What are 2026 employer CPP and EI maximums?
CPP up to CAD 4,230.45 and EI up to CAD 1,572.30 per employee outside Quebec (search summary of CRA figures).
Is there an employer payroll tax?
In ON, BC, MB, NL and QC, with maximum rates of 1.95%-4.3% (PwC).
Is notice required?
Yes. Canada has no at-will employment; notice or pay in lieu is required by province.
Who sets minimum wage?
Provinces and territories; federal CAD 17.75 applies to federally regulated employers.