Overview

Capital
Toronto
Currency
Canadian Dollar (CAD)
Date Format
yyyy/mm/dd

COVID-19

The government announced that those returning from non-essential travel (i.e holiday travel) to Canada will no longer be eligible for the 500 CAD a week sickness benefit under the Canada Recovery Sickness Benefit (CRSB) intended to assist in covering for the need to quarantine upon arrival to Canada.

Taxes

Employer

Employer Payroll Tax

5.45%
Canada Pension Plan (CPP)
2.21%
Employment Insurance (EI) premiums
Employee

Employee Payroll Taxes

5.45%
Canada Pension Plan (CPP)
Up to $900 if taxable income is more than $20,000
Health Premium
1.58% ($889.54 maximum annual employee premium)
Employment Insurance (EI) premiums

Employee Income Tax

Federal:
15%
Up to $49,020 CAD
20.5%
$49,020-$98,040 CAD
26%
$98,040 - $151,978 CAD
29%
$151,978- $216,511 CAD
33%
$216,511 CAD and over
Ontario:
5.05%
Up to $45,142 CAD
9.15%
$45,142 - $90,287 CAD
11.16%
$90,287 - $150,000 CAD
12.16%
150,000- 220,000 CAD
13.16%
220,000 CAD and over

Minimum Wage

General

The general minimum wage in Ontario is 14.25 CAD per hour.

Minimum wage (per month)
$4000
$2663
$2491
$1657.36
$36.80
$22
$2.33
Geneva
Luxembourg
Australia
Ontario
Angola
Uzbekistan
Venezuela
3 HIGHEST
3 LOWEST

Payroll

Payroll Cycle

Salaries are paid bi-weekly, bi-monthly, or monthly. The paydays are decided between the employee and employer. Non-exempt employees are paid bi-weekly.

13th Salary

There are no provisions in the law regarding 13th salaries.

Working Hours

General

A full-time workweek is 40 hours.

Overtime

Overtime pay is paid for every hour after 44 hours weekly at a rate of at least 150% the regular pay. The maximum number of hours an employee can work is 48 hours a week unless agreed upon in writing by the employee and employer.

Leave

Paid Time Off

Employees what have been employed for less than 5 years are entitled to a minimum of 2 weeks’ paid leave, while employees who have worked over 5 years are entitled to 3 weeks.  

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Brazil
Peru
Georgia
Ontario
Malaysia
China
Federal
30
13
43
30
12
42
24
17
41
10
9
19
8
6
14
5
7
12
10
10
Public Holidays

There are 9 public holidays in Ontario.

Sick Days

Employees are entitled to 3 unpaid sick days a year if they have been employed for more than 2 weeks.   

The government announced that those returning from non-essential travel (i.e holiday travel) to Canada will no longer be eligible for the 500 CAD a week sickness benefit under the Canada Recovery Sickness Benefit (CRSB) intended to assist in covering for the need to quarantine upon arrival to Canada.

Maternity Leave

If the woman has been employed for at least 13 weeks, she is entitled to up to 17 weeks of unpaid maternity leave. Maternity leave can start any time starting 17 weeks before the due date. 

PAID MATERNITY LEAVE (DAYS)
410
365
365
119
45
30
0
Bulgaria
Serbia
Albania
Ontario
United Arab Emirates
Tunisia
Federal
3 HIGHEST
3 LOWEST
Paternity Leave

Paternal leave falls under parental leave.

Parental Leave

At the end of the maternity leave, the mother is able to extend the leave with parental leave for up to 61 weeks of unpaid parental leave. Parental leave rights also extend to the father.

Termination

Termination Process

If an employee has been employed for at least 3 months, the employer is obligated to provide the employee with written notice of termination or termination pay 

Notice Period

The employee is obligated to give at least 2 weeks’ notice.

The length of the notice period that the employer is obliged to depends on how long the employee has been employed:

 

Length of employment Notice Period
Less than 1 year 1 week
1-3 years 2 weeks
3-4 years 3 weeks
4-5 years 4 weeks
5-6 years 5 weeks
6-7 years 6 weeks
7-8 years 7 weeks
8+ years 8 weeks
Severance Pay

In order for the employee to qualify for severance pay:  

  • The employee must have completed at least 5 years of employment  
  • The company has a payroll of over 2.5 million CAD per year or have terminated over 50 employees in the past 6 months due to all or part of the company closing  

The severance pay amount is calculated by multiplying the weekly salary amount by the number of years the employee has been employed.   

 

Probation Period

3 months

VAT

General

13% Harmonized Sales Tax (HST)

 

Version History

January 1, 2021
Canada Pension Plan contributions for the employee and employer contribution rates increased to 5.45%.
October 1, 2020
The general minimum wage raised by 25 cents, bringing the new rate to $14.25 an hour.

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    Questions & Answers

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    Walter C.
    Walter C.
    2 months ago

    Are employees who work on Sundays or in a late shift entitled to higher pay for those hours?

    Alex Margolin
    Admin
    2 months ago
    Reply to  Walter C.

    Hi Walter, thanks for your question.

    There is no law that requires you to pay more to employees who work on Sundays or late at night.

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