Canada
VerifiedKey Figures
Income Tax Range
15%–33%
Tax year 2025
Employer Contribution Rate
5.95% + 2.3%
On gross salary
Employee SS Rate
5.95% + 1.64%
Deducted from gross
Minimum Wage
CA$17
Per hour
Income Tax Brackets
Tax year 2025
| Bracket | Income Range | Rate |
|---|---|---|
| Federal 15% Band | CA$0 — CA$57,375 | 15% |
| Federal 20.5% Band | CA$57,375 — CA$114,750 | 20.5% |
| Federal 26% Band | CA$114,750 — CA$158,519 | 26% |
| Federal 29% Band | CA$158,519 — CA$220,000 | 29% |
| Federal 33% Band | CA$220,000 — and above | 33% |
Social Security Contributions
Employee and employer contribution rates
Employee Contributions
Canada Pension Plan (CPP) — Employee
Capped at CA$4,034
Employment Insurance (EI) — Employee
Capped at CA$1,077
Employer Contributions
Canada Pension Plan (CPP) — Employer
Capped at CA$4,034
Employment Insurance (EI) — Employer
Capped at CA$1,508
Employment Rules Summary
Key obligations for employers in Canada
Minimum Wage
CA$17 per hour
Annual Leave
10 days
Sick Leave
3 days
Notice Period
2 days
Probation Period
3 days
Maternity Leave
15 weeks
Paternity Leave
5 weeks
Overtime Rate
1.5× standard rate
Payroll Frequency
Bi-weekly
13th Month Pay
Not required
Health Insurance Schemes
Employer obligations in Canada
Provincial Health Insurance (OHIP/MSP etc.)
PublicEach province and territory operates its own public health insurance plan funded via general taxation. Ontario, BC, and Alberta previously charged premiums; these have been eliminated. Employers in Ontario pay the Employer Health Tax (EHT) at up to 1.95% of total Ontario payroll above $1,000,000.
Employer
—
Extended Health Benefits (Private Supplementary)
Private — OptionalEmployer-sponsored extended health benefits covering prescription drugs, dental, vision, paramedical services, and private hospital rooms. Not legally mandatory but standard practice for most employers. Employer typically contributes 50-100% of premium. Regulated by provincial insurance legislation.
Employer
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Official Sources
Government authorities for Canada employment and tax
Quick Payroll Calculator
Canada - Estimates only
Minimum wage: CA$17 / hour
Estimates only - Not professional tax advice
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Tax Guide
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Payroll process and obligations
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Hiring Guide
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Leave & Benefits
Annual, sick, parental leave
Compliance Calendar
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Data Disclaimer
All data is sourced from official government publications and updated monthly. This is for reference only and does not constitute professional tax or legal advice. Always verify with a qualified local advisor.
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