Canada

Employment taxes

As an employee in Canada, you’ll pay both federal and provincial income taxes. Rates are progressive, and deductions happen automatically from your paycheck.

• Income tax: Between 15% and 33% federally, plus provincial taxes (varies by province).
• Payroll contributions: Includes Employment Insurance (EI) and the Canada Pension Plan (CPP).
• EI: 1.66%
• CPP: 5.95% (matched by employer)

Leave policy

• Vacation: Varies per province, and the minimum is 2 paid weeks/year, but a common practice is the employer to give 21 days.
• Public holidays depend on the province, but there are 5 nationwide public holidays.
• Sick leave: Employees can take up to 5 days of paid sick leave federally (some provinces offer more).
• Maternity leave: Up to 15 weeks paid through EI.
• Parental leave: Up to 69 weeks (shared between both parents), partially paid by EI.
• Paternity leave: Included under parental leave.

Employment termination

Employers need valid reasons and notice to terminate. The rules vary by province, but in general:

• Notice period: 1-8 weeks depending on tenure.
• Severance pay: May apply based on the length of service and circumstances of termination.
• Protected grounds: Discrimination or retaliation are not valid reasons and are protected by law.

Hiring and contracts

• Contracts must be in English or French and can be bilingual. They must be in writing and signed by both parties.
• Contracts usually cover:
• Job title & duties
• Salary & benefits
• Probation period (often 3 months)
• Termination clauses

Payroll and salary payment

• Minimum wage: CAD 16.65/hour (as of 2024, varies by province).
• Payment frequency: Weekly, biweekly, or monthly, depends on employer.
• Payslips: Required by law and must detail earnings, deductions, and hours worked.

Benefits

Mandatory:

• CPP and EI contributions
• Workers’ compensation (varies by province)

Optional:

• Extended health and dental plans
• Life insurance
• RRSP (retirement savings plans)
• Employee Assistance Programs (EAP)

Monthly living cost (Ottawa Edition)

• Rent (1-bedroom): CAD 1,700–2,200/month
• Utilities + Internet: CAD 200/month
• Public transport pass: CAD 125/month
• Groceries: CAD 400–600/month
• Dining & Coffee: CAD 200–300/month

Ottawa is more affordable than Toronto or Vancouver, but still offers a great urban lifestyle.

How to get a local ID number

• For employees: You’ll need a Social Insurance Number (SIN) to get paid and access government services.
• For remote workers: You still need a SIN if you’re paying taxes in Canada or working from here long-term.

Social security registration

• Automatically handled when you get your SIN.
• Contributions are deducted from your paycheck for:
• Canada Pension Plan (CPP)
• Employment Insurance (EI)

Banking

Opening a bank account is simple with your SIN, ID, and proof of address.

Popular banks:

• RBC (Royal Bank of Canada)
• TD Canada Trust
• Scotiabank
• BMO (Bank of Montreal)
• CIBC

Many banks offer newcomer accounts with zero fees and perks for your first year.

Housing and rental process

To rent an aparmtnet or hous you’ll need:

• Proof of income or employment
• Credit check
• First and last month’s rent upfront

Tenant rights:

• Protected under provincial laws
• Rent increases are regulated
• Evictions require legal notice

Healthcare system

• Canada’s healthcare is publicly funded and mostly free at the point of care.
• Each province runs its own plan.
• As a resident employee, you’ll be eligible for provincial health insurance, usually after a short waiting period.
• Many employers offer extended health benefits for things like dental, vision, or prescriptions.

Driving and public transport

• Public transport: Clean, safe, and reliable in most cities. Buses, trains, subways depending on the city.
• Driving: Foreign licenses are valid temporarily, but you’ll need a provincial driver’s license after settling.

Emergency and important contacts

• Emergency number: 911 (police, fire, ambulance)
• Service Canada: 1-800-622-6232
• Health Info Lines (by province)
• 211: Free service for local non-emergency services and info

Work permit and visa requirements

• All foreign nationals need a work permit to work in Canada.
• Options include:
• Employer-specific work permit
• Open work permit (through spousal sponsorship or IEC)
• Express entry for skilled immigration
• Provincial Nominee Programs (PNP)
• Some can enter under the Global Talent Stream for tech roles.

Business culture and work norms

• Meetings start on time.
• People value politeness, clarity, and collaboration.
• Diversity and inclusion are baked into workplace norms.
• Titles matter less, contribution and communication matter more.