Hiring guide · Americas
How to hire in Canada
To hire in Canada you need a federal payroll account plus registration in the employee's province, or an Employer of Record that holds both. Employer statutory cost is roughly 10–12% of salary across CPP, EI and provincial health and workers' compensation levies, with bi-weekly payroll.
- Currency
- CAD
- Payroll cycle
- Bi-weekly
- Employer cost
- ~10–12%
- Notice
- 1–8 weeks statutory, more at common law
The talent market in Canada
Canada offers full US time-zone overlap, strong AI and machine-learning research clusters in Toronto, Montreal and Edmonton, and salaries typically 20–30% below equivalent US roles. It is the most common cost-balanced alternative for North American engineering teams.
Employment standards are provincial, so leave entitlements, overtime thresholds and termination rules differ between Ontario, British Columbia, Quebec and Alberta. Quebec adds French-language requirements for contracts and workplace communication.
Salary benchmarks in Canada
Indicative annual gross base salary in CAD for common roles. Treat these as planning ranges — actual offers move with city, seniority, sector and equity mix, and we model a live benchmark before you go to offer.
| Role | Annual gross base |
|---|---|
| Software engineer (mid) | CAD 100,000 – 135,000 |
| Senior software engineer | CAD 135,000 – 175,000 |
| Account executive (SaaS) | CAD 85,000 – 115,000 base + variable |
| Customer support specialist | CAD 50,000 – 68,000 |
Employment rules and payroll in Canada
The statutory framework any offer has to sit inside — hours, leave, notice and the contributions that turn salary into fully loaded cost.
Working week
40 hours; overtime thresholds set provincially
Probation
3 months typical, with reduced notice during it
Notice period
1–8 weeks statutory by service, with larger common-law entitlements on dismissal
Paid leave
2–3 weeks statutory rising with service; 3–4 weeks is market
Public holidays
5 national plus provincial days, generally 9–13 in total
Payroll cycle
Bi-weekly or semi-monthly
Employer contributions
CPP/QPP, Employment Insurance, provincial health levies and workers' compensation
Contractor, EOR employee or your own entity?
Three ways to engage someone in Canada. The right one depends on how permanent the role is, how much direction you give, and how much local risk you want to carry.
Contractor
Fastest to start and simplest to end. Suitable for genuinely independent, project-scoped work where the person controls how and when they deliver, invoices you, and works for other clients. No statutory benefits, no notice period, no severance.
Employee via EOR
The right structure for a full-time role with fixed hours, managerial direction and exclusivity. A licensed in-country partner is the legal employer, so the person gets a compliant contract, statutory benefits and local payroll — without you opening an entity.
Your own entity
Worth it once headcount, permanence and local revenue justify the incorporation, tax registration, statutory filings and local directorship. Most companies reach that point somewhere between 15 and 30 employees in a single country.
Misclassification risk in Canada
The CRA applies a control and integration test, and provincial tribunals apply their own. Reclassification triggers back CPP and EI with penalties, and — more expensively — common-law reasonable notice on termination, which for a long-serving senior worker can reach 12 to 24 months of pay.
Work permits and right to work
Canadian citizens and permanent residents need no permit. Foreign nationals generally need a work permit, either through the Global Talent Stream for eligible tech roles, which targets two-week processing, or an LMIA-backed permit. Both attach to a specific employer, so sponsorship needs to be planned around the entity that will hold the permit.
Hire in Canada without an entity
Our Employer of Record page for Canada covers statutory cost, compliance obligations and onboarding timelines in detail, through licensed in-country partners.
EOR in Canada- Fully loaded cost modelled before offer
- Licensed partner matched, not assumed
- One contract, one consolidated bill
Hiring in Canada: frequently asked questions
Can we hire in Canada without a Canadian entity?
Yes. A Canadian Employer of Record employs the person under its own federal payroll account and provincial registrations, so you can hire in Ontario, British Columbia or Quebec within days without incorporating federally or provincially.
What does a Canadian employee cost above salary?
Roughly 10–12% of salary: CPP or QPP, Employment Insurance, provincial health levies such as Ontario's EHT, and workers' compensation premiums. Extended health and dental benefits are expected in competitive offers but are not statutory.
Why is termination in Canada more expensive than in the US?
Statutory notice is only the floor. Common-law reasonable notice, based on age, service, seniority and re-employment prospects, frequently exceeds it substantially, so exits should be modelled on the common-law figure rather than the statutory minimum.
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Get the Canada Hiring Cost Guide
A country brief covering fully loaded employment cost in CAD, salary benchmarks by role, statutory contributions, leave and notice rules, and a sample offer breakdown for Canada.