Wages and Benefits
It is estimated that Canadian statutory and employer sponsored benefit costs are
currently 8.6% lower than similar U.S. costs. Experience at local companies suggests
that employee benefit costs approximate 35% of base wages and salaries. This includes
20% for statutory benefits and 15% for optional programs. Government regulated
benefits include Vacation, Holidays, Employment Insurance, Canada Pension Plan,
Employer Health Tax and Workplace Safety Insurance. A breakdown of statutory and
optional benefit costs reflects the following expressed as a % of base compensation.
Statutory Benefit Costs - 20%
- Vacation (two weeks minimum requirement)
- Holidays (8 public holidays minimum requirement)
- Employment Insurance (on earnings to a maximum C$39,000)
- Canada Pension Plan (on pensionable earnings to a maximum C$41,100)
- Workplace Safety Insurance (on earnings to a maximum C$65,600)
- Employer Health Tax (on gross payroll greater than C$400,000)
Optional Benefit Costs - 15%
- Health, dental, life and disability insurance
- Company pension (cost normally shared between employees and employer)
- Additional vacation days
- Additional holidays
Related Links
Human
Resources Development Canada (HRDC)
Canada Revenue Agency
