Hiring in Canada

Canada’s skilled professionals and stable economy make it ideal for expansion, but provincial labor laws and tax rules can complicate hiring. Omnipresent acts as your Employer of Record (EOR), handling compliance with CRA regulations and regional standards, so you can onboard talent without a local presence.

Our EOR services cover payroll, benefits like Employment Insurance, and statutory holidays, letting you manage teams in Toronto, Vancouver, or anywhere in between. We simplify the process with a platform built for Canada’s diverse workforce needs.

• Fast hiring across provinces.
• Compliant payroll in CAD.
• \n- Support for local benefit norms.
• Easy scaling without red tape.

Employer costs include the Canada Pension Plan, Employment Insurance, and Provincial Health Tax. In Quebec, they also include contribution to the QPIP (Quebec Parental Insurance Plan). Use the OmniCalculator to estimate costs, or contact us for further information.

Income taxes

15% - 33%.

Canada's federal income tax rates are levied on a progressive scale, with rates ranging from 15% to 33%.

Employee Social Contributions

With very few exceptions, every person over the age of 18 who works in Canada outside of Quebec and earns more than a minimum amount (C$3,500 per year) must contribute to the Canada Pension Plan.

Effective for 2024, the CPP contribution rate for employees is 5.95%. Effective starting in 2024, employees are assessed an additional CPP tax rate of 4%. The CPP maximum pensionable earnings applicable for the additional CPP tax rate is C$ 73,200.

Effective for 2024, the QPP base contribution rate for employees is 5.4%.

Employees and employers each are assessed a second additional QPP contribution of 4% on the amount of annual employment income exceeding the original earnings limit and up to an additional earnings limit, also known generally as the QPP additional maximum pensionable earnings.

Effective for 2024, the QPP additional maximum pensionable earnings applicable for second additional contributions is C$73,200.

All employees must contribute Employment Insurance premiums. Effective for 2024, the standard EI tax rate for employees is 1.66% . The EI tax rate for employees who are residents of Quebec is 1.32%

Employees are subject to Quebec Pension Plan and Quebec Parental Insurance Plan contributions if they work in Quebec or are paid from a business location in Quebec.

Quebec employees are assessed a QPIP rate of 0.494%

Typical Working Hours per Week:

Standard work hours in Canada are generally 8-hour days, or 40 hours per week. Typically the maximum number of hours worked in a week is 48 hours. This can be exceeded in special circumstances including permits, for emergency work, under an averaging plan, or a modified work schedule.

‍Overtime Laws:

Any hours that exceed standard hours of work are considered overtime hours. Overtime pay in Canada is typically calculated at a higher rate than the regular hourly wage. Overtime laws in Canada are complex and can depend on the specific circumstances and the employee. We are happy to discuss this in more detail for a specific context.

Sick leave varies between the Canadian provinces. At Omnipresent we are well-versed in provincial leave rules and can ensure that your employment contract reflects those requirements. Please contact us for further details.

Parental leave (maternity and paternity) varies between the Canadian provinces. At Omnipresent we are well-versed in provincial leave rules and can ensure that your employment contract reflects those requirements. Please contact us for further details.

The national minimum annual leave entitlement in Canada is two weeks after the first year of employment. Annual leave varies between the Canadian provinces, but none are less than the standard leave amount. Please contact us for further details.

Employees may be eligible for severance pay, the amount of which depends on their length of service and the province that they are based in.

Employees can be terminated with ‘just cause’ or without cause. Termination regulations and procedures depends on the province.