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Canada operates under a dual system where federal minimum wage applies to federally regulated employees, while each province and territory sets its own rates for most workers. The federal minimum wage is $17.75 CAD per hour as of April 1, 2025.
Provincial and Territorial Minimum Wages (2025):
Jurisdiction | Minimum Wage (CAD/hour) | Effective Date |
---|---|---|
Federal (Canada Labour Code) | $17.75 | April 1, 2025 |
Alberta | $15.00 | October 1, 2018 |
British Columbia | $17.85 | June 1, 2025 |
Manitoba | $15.80 | October 1, 2024 |
New Brunswick | $15.65 | April 1, 2025 |
Newfoundland & Labrador | $16.00 | April 1, 2025 |
Northwest Territories | $16.70 | September 1, 2024 |
Nova Scotia | $15.70 | April 1, 2025 |
Nunavut | $19.00 | January 1, 2025 |
Ontario | $17.20 | October 1, 2024 |
Prince Edward Island | $16.00 | October 1, 2024 |
Quebec | $16.10 | May 1, 2025 |
Saskatchewan | $15.00 | October 1, 2024 |
Yukon | $17.94 | April 1, 2025 |
Most provinces adjust minimum wage annually based on the Consumer Price Index (CPI) or other economic indicators.
Canadian employers typically follow one of three payroll schedules:
Provincial employment standards dictate maximum intervals between pay periods, generally requiring payment at least monthly.
Canada uses a progressive tax system with both federal and provincial components. Federal tax brackets for 2025:
Income Bracket (CAD) | Federal Tax Rate |
---|---|
Up to $53,359 | 15% |
$53,359.01 to $106,717 | 20.5% |
$106,717.01 to $165,430 | 26% |
$165,430.01 to $235,675 | 29% |
Over $235,675 | 33% |
Provincial tax rates vary significantly. Quebec operates its own tax system (Revenu Québec), while other provinces piggyback on the federal system through the Canada Revenue Agency (CRA).
Individuals are considered Canadian tax residents if they:
Tax residents pay Canadian income tax on worldwide income. Employers must withhold taxes based on residency status and complete proper documentation.
Employers face mandatory contributions beyond gross salary. Key contribution rates for 2025:
Contribution Type | Rate Range | Notes |
---|---|---|
Canada/Quebec Pension Plan | 5.95% (CPP) / 6.40% (QPP) | On earnings up to annual maximum |
Employment Insurance | 1.4-2.3% | Varies by province |
Workers' Compensation | 0.18-2.00% | Industry and claims history dependent |
Provincial Health Tax | 0-4.26% | Varies by province and payroll size |
Quebec-specific (QPIP, WSDRF) | 0.69% + 1.00% | Quebec employers only |
Total employer cost typically ranges from 8-17% above gross salary, depending on province and industry classification.
The standard work week in Canada is 40 hours over 5 days (8 hours per day, Monday through Friday). However, specific regulations vary by province:
Certain categories of employees may be exempt from standard hour limits, including senior managers, IT professionals, and other professionals with autonomous schedules.
Overtime compensation is 1.5× the regular hourly rate for hours worked beyond provincial thresholds:
Maximum overtime limits vary by province, typically requiring employee consent for excessive overtime. Some jurisdictions allow time-off in lieu (compensatory time) instead of paid overtime if agreed upon in writing.
Full-time vs Part-time:
Permanent vs Contract:
While not legally mandated, bonuses are common in Canadian compensation packages. Key considerations:
Minimum entitlements increase with tenure:
Vacation pay must be paid either:
Scheduling: Employers generally control timing but must provide reasonable notice. Employees may request specific dates subject to operational requirements.
Sick leave provisions vary significantly by jurisdiction:
Federal employees: 10 days paid sick leave annually (as of December 2022)
Provincial variations:
Medical certification may be required for extended absences, but employers cannot require doctor's notes for short-term illness in many provinces.
Duration: Up to 17 weeks of job-protected leave
Eligibility: Must have worked for the same employer for at least 90 days (varies by province)
Payment: Through Employment Insurance (EI), not employer-funded
Job protection: Employers must guarantee the same or comparable position upon return
Standard option: Up to 40 weeks (can be shared between parents, maximum 35 weeks per parent)
Extended option: Up to 69 weeks (maximum 61 weeks per parent) at reduced EI benefit rate
Combination: Can be combined with maternity leave for up to 78 weeks total
Payment: Through Employment Insurance at 55% of average weekly earnings (standard) or 33% (extended)
Bereavement Leave:
Family Responsibility Leave:
Domestic Violence Leave:
Jury Duty/Court Appearances:
Leave Type | Duration | Paid? | Funding Source | Job Protected? |
---|---|---|---|---|
Vacation | 2-3 weeks/year | Yes | Employer | Yes |
Sick Leave | 1-10 days/year | Varies | Employer | Yes |
Maternity | 17 weeks | Yes (55% EI) | Government | Yes |
Parental | 40-69 weeks | Yes (33-55% EI) | Government | Yes |
Bereavement | 2-10 days | Partially | Employer/Gov't | Yes |
Family Emergency | 3-10 days | Varies | Employer/Gov't | Yes |
Domestic Violence | Up to 10 days | Partially | Employer/Gov't | Yes |
Termination with Just Cause:
Termination without Cause:
Notice periods are based on length of service and vary by province. Common provincial minimums:
Length of Employment | Minimum Notice Period |
---|---|
Less than 3 months | None (probationary period) |
3 months to 1 year | 1 week |
1 to 3 years | 2 weeks |
3 to 4 years | 3 weeks |
4 to 5 years | 4 weeks |
5 to 6 years | 5 weeks |
6 to 7 years | 6 weeks |
7 to 8 years | 7 weeks |
8+ years | 8 weeks |
Important notes:
Severance is separate from notice and applies in specific circumstances:
Federal jurisdiction:
Provincial variations:
Special rules apply when terminating multiple employees:
Federal jurisdiction:
Provincial requirements vary:
Employers must issue final pay within specified timeframes:
Final pay must include:
Employees cannot be terminated for:
Protected grounds include race, gender, religion, disability, sexual orientation, and other characteristics defined in human rights legislation.
Federal statutory holidays (apply to federally regulated employees):
Holiday | 2025 Date | Notes |
---|---|---|
New Year's Day | January 1 | |
Good Friday | April 18 | |
Victoria Day | May 19 | Monday before May 25 |
Canada Day | July 1 | |
Labour Day | September 1 | First Monday in September |
National Day for Truth and Reconciliation | September 30 | Federal employees only |
Thanksgiving Day | October 13 | Second Monday in October |
Remembrance Day | November 11 | |
Christmas Day | December 25 |
Each province adds additional holidays:
British Columbia:
Ontario:
Quebec:
Alberta:
Atlantic Provinces:
To qualify for statutory holiday pay, employees typically must:
Holiday pay calculation varies by province:
When employees work on statutory holidays:
Essential services (healthcare, emergency services) may have different arrangements through collective agreements or special legislation.
Employment Contract must include:
Government Forms:
Identity Verification:
Canadian citizens and permanent residents can work without restrictions.
Foreign workers require:
Employer responsibilities:
Background checks are permitted but must be:
Permitted checks:
Federal Privacy Legislation:
Provincial Privacy Laws:
Key requirements:
Intellectual Property:
Confidentiality Agreements:
Standard probation: Up to 3 months (some provinces allow 6 months)
During probation:
Typical 10-day process:
Day | Activity |
---|---|
1-2 | Offer acceptance and contract preparation |
3-4 | Document collection (SIN, TD1, banking) |
5-6 | Background checks and reference verification |
7-8 | Payroll system setup and benefits enrolment |
9-10 | Final compliance review and employee start |
Employee vs Independent Contractor distinction is crucial for compliance:
Employee indicators:
Contractor indicators:
Canada Revenue Agency tests:
Misclassification risks:
Unionization rates vary by sector:
Collective bargaining impact:
Right to organize:
Communication style:
Work-life balance expectations:
Diversity and inclusion:
Professional development:
Legal considerations:
Employer responsibilities:
Cross-border remote work:
Technology and security:
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