Hiring in Canada through an Employer of Record
A Canadian employer matches the worker's Canada Pension Plan contribution, rate for rate.
Employing someone in Canada through an Employer of Record costs their salary, plus 5.95 percent canada pension plan, employer share, plus the vendor's own monthly fee, the lowest published being from $199 from RemoFirst. The charges were read from canada.ca, last on .
What does an employer pay on top of salary in Canada?
- 5.95% Canada Pension Plan, employer share
Each charge, and what it is for
- Canada Pension Plan, employer share: 5.95 percent of earnings between a basic exemption and a yearly cap.
- Federal minimum wage: 18.15 CAD an hour, but only in federally regulated private sectors; each province and territory sets its own rate for everyone else.
This figure is in CAD, and the calculator below works in US dollars, so it does not apply it. Converting would need an exchange rate this site has not sourced.
The pension charge stops at a yearly earnings cap, and this works it out on the whole salary, so it runs high for well paid staff. Employment Insurance, which the employer also pays, is left out: the government states it only as a multiple of the worker's rate, and this site does not publish a figure it cannot find written down.
What does one employee in Canada cost a year?
Salary plus the charges above plus the vendor's published monthly fee, for twelve months. "At least" marks a vendor whose published fee is a starting price. Not included: benefits and currency conversion fees.
Vendor fees used
Atlas HXM from $599, Deel from $599, G-P from $599, Multiplier from $459, Oyster $699, Pebl (Velocity Global) $399, RemoFirst from $199, Remote from $599, Remundo from $498, Rivermate from $349, Skuad from $199, Slasify from $250, Teamed from $599. Not published: Rippling.
Where these numbers come from
- Canada Pension Plan, employer share on canada.ca read
- Each vendor's own pricing page, linked from its name above.