Cost to hire an employee in Canada (2026)
Hiring through an EOR in Canada: salary, employer contributions and provider fees, shown separately for a sample hire. The figures are known subtotals, not complete costs; missing employer charges and unpublished currency-conversion costs are excluded, not counted as zero.
The cost to hire an employee in Canada through an EOR starts with salary, then adds employer contributions, any statutory additional pay or employer funds, and the provider’s fees. The breakdown below separates these costs and identifies charges excluded from the known subtotal; it is not a complete provider quote.
For a C$83,148 CAD hire in Canada, the known monthly cost (excluding unpublished currency-conversion charges) ranges from C$7,586 on RemoFirst (lowest provider cost on this subtotal) to C$8,279 on the highest-cost platform. Employer-side statutory contributions add at least ~5.5% on top of cash salary, before charges that depend on the employer's total annual wage bill, employment work location and Employment Insurance, employer premium at the reduced Québec rate and Québec Pension Plan, employer contribution and Québec parental insurance plan, employer premium and Quebec Pension Plan second additional contribution (QPP2), employer and Québec health services fund contribution, payroll above the upper threshold and Québec workforce skills development levy and Ontario employer health tax, above the exemption and British Columbia employer health tax, above the notch band and Manitoba health and post-secondary education levy, above the notch band and Newfoundland and Labrador health and post-secondary education tax, above the exemption and Workers' compensation premium (Ontario WSIB) and Workers' compensation premium (provincial or territorial board) and Work-injury insurance premium (Québec CNESST) and Provincial employer health and payroll taxes and Workers' compensation premiums, which are not included in this subtotal.
Calculate your scenarioCanada employer cost at a glance
- Employer statutory cost
- About 5.5% of annual base salary in the displayed scenario, excluding the charges named below; this is a known subtotal, not a final cost
- Employer contributions
- Canada Pension Plan (base and enhanced) · Second additional CPP contribution (CPP2) · Employment Insurance (employer premium, outside Quebec) · Provincial employer health and payroll taxes · Workers' compensation premiums
- Contribution ceiling
- Applies
- Mandatory additional pay
- No
- Verified provider coverage
- 5 providers with verified availability
- What this estimate includes
- The employer costs we can calculate. Not included: Employment Insurance, employer premium at the reduced Québec rate, Québec Pension Plan, employer contribution, Québec parental insurance plan, employer premium, Quebec Pension Plan second additional contribution (QPP2), employer, Québec health services fund contribution, payroll above the upper threshold, Québec workforce skills development levy, Ontario employer health tax, above the exemption, British Columbia employer health tax, above the notch band, Manitoba health and post-secondary education levy, above the notch band, Newfoundland and Labrador health and post-secondary education tax, above the exemption, Workers' compensation premium (Ontario WSIB), Workers' compensation premium (provincial or territorial board), Work-injury insurance premium (Québec CNESST), Provincial employer health and payroll taxes, Workers' compensation premiums. It depends on facts not supplied here (the employer's total annual wage bill, employment work location), so the figure is a known subtotal.
- Scope of this figure
- Canada has no single national employer charge. Without a province the calculation must assume one, and 'outside Quebec' is the majority case; it also silently drops every provincial health tax, payroll levy and workers' compensation premium, which is why the honest result is a subtotal rather than a total.
- Evidence depth
- Charge-by-charge statutory evidence and sources shown below
- Statutory evidence last verified
- 2026-09-07
How this cost is calculated
Figures for Canada are calculated charge by charge from the published statutory rules, each with its own rate, ceiling and source shown below. Not included: Employment Insurance, employer premium at the reduced Québec rate, Québec Pension Plan, employer contribution, Québec parental insurance plan, employer premium, Quebec Pension Plan second additional contribution (QPP2), employer, Québec health services fund contribution, payroll above the upper threshold, Québec workforce skills development levy, Ontario employer health tax, above the exemption, British Columbia employer health tax, above the notch band, Manitoba health and post-secondary education levy, above the notch band, Newfoundland and Labrador health and post-secondary education tax, above the exemption, Workers' compensation premium (Ontario WSIB), Workers' compensation premium (provincial or territorial board), Work-injury insurance premium (Québec CNESST), Provincial employer health and payroll taxes, Workers' compensation premiums. It depends on facts not supplied here (the employer's total annual wage bill, employment work location), so the figure is a known subtotal. Scope: Canada has no single national employer charge. Without a province the calculation must assume one, and 'outside Quebec' is the majority case; it also silently drops every provincial health tax, payroll levy and workers' compensation premium, which is why the honest result is a subtotal rather than a total. Last checked against source on 2026-09-07.
A final total is not yet known: this subtotal depends on information that has not been supplied, and other employer-specific charges may remain unquantifiable even after the questions shown are answered. How to read these figures.
More information requiredA complete total for Canada depends on information that has not been supplied (the employer's total annual wage bill, employment work location), so the totals below are a subtotal. Nothing has been assumed in its place.
| Annual base salary | C$83,148 |
| Average monthly employment cashAnnual cash ÷ 12 | C$6,929 |
Employer CPP & EI contributions (at least ~5.5%, monthly)Why is this a subtotal?A complete total for Canada depends on information that has not been supplied (the employer's total annual wage bill, employment work location), so the totals below are a subtotal. Nothing has been assumed in its place. Nothing has been assumed in its place. | C$381 |
| EOR platform fee (RemoFirst) | C$276 |
| Monthly subtotal, pending more information (lowest provider cost on this subtotal) | C$7,586 |
Lowest provider cost for Canada, on the known subtotal
Providers are ordered on the same known statutory subtotal, so this compares provider charges only, not a complete employer cost for Canada. It excludes currency-conversion cost, which is not estimated here. Re-run the calculator at your actual band.
View fees & terms for RemoFirst
- Provider fee
- $199/employee/month in Canada (Verified published value)Published as a single fixed fee for every country.
- Setup fee
- No setup fee (Verified published value)None
- Offboarding fee
- No offboarding fee (Verified published value)None
- Minimum headcount
- None (Verified published value)
- Minimum term
- None (month-to-month) (Verified published value)
- Cancellation
- Could not verify (Could not verify)
- Deposit
- Not publicly disclosed (Not publicly disclosed)
- Currency conversion
- Uses a mid-market reference rate; markup not disclosed (Not publicly disclosed)Uses a mid-market reference rate; markup not disclosed. Rate fixed when the invoice is issued. Applies to payroll funding and invoice line items. EOR Lens does not assume a figure where the provider publishes none.
Provider fees can vary by country, plan or billing term, so a provider-level starting price is not automatically the exact fee for this country. Information a provider does not publish is never treated as zero, free, no minimum or no deposit. These facts are shown for transparency: publishing more of them does not improve a provider's position in any ranking, and provider currency-conversion terms remain outside the totals.
View fees & terms for Pebl
- Provider fee
- $399/employee/month in Canada (Verified published value)Published as a single fixed fee for every country.
- Setup fee
- No setup fee (Verified published value)None
- Offboarding fee
- No offboarding fee (Verified published value)None
- Minimum headcount
- Not publicly disclosed (Not publicly disclosed)
- Minimum term
- Not publicly disclosed (Not publicly disclosed)
- Cancellation
- Could not verify (Could not verify)
- Deposit
- Not publicly disclosed (Not publicly disclosed)
- Currency conversion
- FX terms not publicly disclosed (Not publicly disclosed)FX terms not publicly disclosed. EOR Lens does not assume a figure where the provider publishes none.
Provider fees can vary by country, plan or billing term, so a provider-level starting price is not automatically the exact fee for this country. Information a provider does not publish is never treated as zero, free, no minimum or no deposit. These facts are shown for transparency: publishing more of them does not improve a provider's position in any ranking, and provider currency-conversion terms remain outside the totals.
View fees & terms for Shor
- Provider fee
- $449/employee/month in Canada (Verified published value)Published country tier for this country.
- Setup fee
- No setup fee (Verified published value)None
- Offboarding fee
- Not publicly disclosed (Not publicly disclosed)
- Minimum headcount
- None (Verified published value)
- Minimum term
- None (month-to-month billing, 30-day cancellation) (Verified published value)
- Cancellation
- 30 days (Verified published value)
- Deposit
- Not publicly disclosed (Not publicly disclosed)
- Currency conversion
- 2.00% (published) (Verified published value)Publishes an FX markup of 2.00%. Rate fixed when the invoice is issued. Applies to payroll funding and invoice line items. This figure is shown for transparency and is not added to any total or ranking.
Provider fees can vary by country, plan or billing term, so a provider-level starting price is not automatically the exact fee for this country. Information a provider does not publish is never treated as zero, free, no minimum or no deposit. These facts are shown for transparency: publishing more of them does not improve a provider's position in any ranking, and provider currency-conversion terms remain outside the totals.
Not ranked in Canada: Rippling EOR, Papaya Global. Coverage not sufficiently verified for ranking. This is not a statement that the service is unavailable there.
Costs to budget for beyond this estimate in Canada
- • Common-law notice vs ESA minimums, ESA is a floor, not a ceiling. A non-unionized 5-year-tenured executive may be entitled to 5–8 months of notice/pay under Bardal common-law factors, not the 5 weeks ESA specifies.
- • Quebec is its own employment-law jurisdiction. CPP doesn't apply (QPP does), EI is different (QPIP), the language of work must be French (Loi 96, 2022), and labor standards (CNESST) override federal norms.
- • CPP2 (the second-tier CPP introduced 2024) is often missed by foreign payroll providers. Adds ~$190 employer + employee combined for high earners.
- • Independent contractor classification: Canada Revenue Agency uses a multi-factor test (control, ownership of tools, chance of profit/loss, integration). Misclassification triggers back-CPP, back-EI, and CRA penalties.
Hiring inputs
We'll bill your final monthly total in USD ($).
Popular destinations for United States employers: Mexico, Colombia, Philippines.
Enter the annualised base salary in USD ($), not the employee's local currency, and before statutory additional payments. EOR Lens adds mandatory additional pay separately where applicable.
Amount in USDOptional: a few details about Canada that change the cost
Some charges in Canada depend on facts only you know. Answer any of these and they are added to the figure. Leave them blank and they stay listed as not included.
Payroll taxes and disability-fund rates step at a wage-bill threshold, so this can change the rate rather than just the amount.
Canada charges employers province by province: Quebec runs its own pension and parental insurance plans, and four provinces levy an employer health or payroll tax the others do not.
Quebec's health services fund publishes a lower rate column for employers in agriculture, forestry, fishing, mining and manufacturing than for everyone else.
A final total is not yet known: this subtotal depends on information that has not been supplied, and other employer-specific charges may remain unquantifiable even after the questions shown are answered. How to read these figures.
Includes: base salary, statutory employer taxes & social contributions, mandatory 13th/14th-month pay where applicable. Excludes: bonuses, equity, private health top-ups, pension uplifts, severance accrual, and one-off compliance fees. Verify against a binding provider quote before signing a contract.
Platform fee is under 5% of employment cost, differences between providers are noise. Pick on entity ownership, audit posture, and country-specific expertise instead.
Compare EOR platforms
Hiring in Canada · billed to United States in USD.
Top match for Canada
RemoFirst
EOR Lens offer · 1 month free
Platform fee, contract terms and offboarding cost were the active differentiators.
Paid link · EOR Lens may earn a fee if you sign up through this link.
Save or share this result
Not ranked in Canada: Rippling EOR, Papaya Global. Coverage not sufficiently verified for ranking. We only rank a provider where its own published sources, documentation or a direct confirmation establish that it offers an Employer of Record service in that country. This is not a statement that the service is unavailable.
View fees & terms for RemoFirst
- Provider fee
- $199/employee/month in Canada (Verified published value)Published as a single fixed fee for every country.
- Setup fee
- No setup fee (Verified published value)None
- Offboarding fee
- No offboarding fee (Verified published value)None
- Minimum headcount
- None (Verified published value)
- Minimum term
- None (month-to-month) (Verified published value)
- Cancellation
- Could not verify (Could not verify)
- Deposit
- Not publicly disclosed (Not publicly disclosed)
- Currency conversion
- Uses a mid-market reference rate; markup not disclosed (Not publicly disclosed)Uses a mid-market reference rate; markup not disclosed. Rate fixed when the invoice is issued. Applies to payroll funding and invoice line items. EOR Lens does not assume a figure where the provider publishes none.
Provider fees can vary by country, plan or billing term, so a provider-level starting price is not automatically the exact fee for this country. Information a provider does not publish is never treated as zero, free, no minimum or no deposit. These facts are shown for transparency: publishing more of them does not improve a provider's position in any ranking, and provider currency-conversion terms remain outside the totals.
Paid link · EOR Lens may earn a fee if you sign up through this link.
EOR Lens offer: 1 month free
$199/employee/month, and RemoFirst states no setup, onboarding or termination fees, no annual contract and no minimums (remofirst.com/price, verified 4 Sep 2026). It publishes no security-deposit requirement; the one month modelled here is our assumption, so confirm it in your quote.· verified 2026-09-04
View fees & terms for Pebl
- Provider fee
- $399/employee/month in Canada (Verified published value)Published as a single fixed fee for every country.
- Setup fee
- No setup fee (Verified published value)None
- Offboarding fee
- No offboarding fee (Verified published value)None
- Minimum headcount
- Not publicly disclosed (Not publicly disclosed)
- Minimum term
- Not publicly disclosed (Not publicly disclosed)
- Cancellation
- Could not verify (Could not verify)
- Deposit
- Not publicly disclosed (Not publicly disclosed)
- Currency conversion
- FX terms not publicly disclosed (Not publicly disclosed)FX terms not publicly disclosed. EOR Lens does not assume a figure where the provider publishes none.
Provider fees can vary by country, plan or billing term, so a provider-level starting price is not automatically the exact fee for this country. Information a provider does not publish is never treated as zero, free, no minimum or no deposit. These facts are shown for transparency: publishing more of them does not improve a provider's position in any ranking, and provider currency-conversion terms remain outside the totals.
$399/employee/month published on hellopebl.com/eor-pricing (verified 4 Sep 2026). Pebl's own FAQ states it charges no setup or offboarding fees, so the old Velocity Global $750 offboarding fee has been removed. Pebl no longer publishes deposit or minimum-term details. The former 1.5-month deposit came from pre-rebrand Velocity Global material and has been withdrawn, so deposit terms are shown as not published and must be confirmed in your quote.· verified 2026-09-04
View fees & terms for Shor
- Provider fee
- $449/employee/month in Canada (Verified published value)Published country tier for this country.
- Setup fee
- No setup fee (Verified published value)None
- Offboarding fee
- Not publicly disclosed (Not publicly disclosed)
- Minimum headcount
- None (Verified published value)
- Minimum term
- None (month-to-month billing, 30-day cancellation) (Verified published value)
- Cancellation
- 30 days (Verified published value)
- Deposit
- Not publicly disclosed (Not publicly disclosed)
- Currency conversion
- 2.00% (published) (Verified published value)Publishes an FX markup of 2.00%. Rate fixed when the invoice is issued. Applies to payroll funding and invoice line items. This figure is shown for transparency and is not added to any total or ranking.
Provider fees can vary by country, plan or billing term, so a provider-level starting price is not automatically the exact fee for this country. Information a provider does not publish is never treated as zero, free, no minimum or no deposit. These facts are shown for transparency: publishing more of them does not improve a provider's position in any ranking, and provider currency-conversion terms remain outside the totals.
View fees & terms for Oyster
- Provider fee
- $699/employee/month in Canada (Verified published value)Published as a single fixed fee for every country.
- Setup fee
- No setup fee (Verified published value)None
- Offboarding fee
- No offboarding fee (Verified published value)None
- Minimum headcount
- Not publicly disclosed (Not publicly disclosed)
- Minimum term
- Not publicly disclosed (Not publicly disclosed)
- Cancellation
- 30 days (Verified published value)
- Deposit
- Refundable deposit required; number of months not published (Verified published value)
- Currency conversion
- FX rate-fixing rule published; exact markup not disclosed (Not publicly disclosed)FX rate-fixing rule published; exact markup not disclosed. Rate fixed at the close of the previous month. Conversion is trued up at reconciliation after payroll runs. EOR Lens does not assume a figure where the provider publishes none.
Provider fees can vary by country, plan or billing term, so a provider-level starting price is not automatically the exact fee for this country. Information a provider does not publish is never treated as zero, free, no minimum or no deposit. These facts are shown for transparency: publishing more of them does not improve a provider's position in any ranking, and provider currency-conversion terms remain outside the totals.
$699/employee/month confirmed on oysterhr.com/pricing (4 Sep 2026). Oyster charges no setup, onboarding or offboarding fees, but does require a refundable deposit to start an engagement; it does not publish how many months, so one month is modelled here.· verified 2026-09-04
View fees & terms for Remote
- Provider fee
- $699/employee/month in Canada (Verified published value)Published as a single fixed fee for every country.
- Setup fee
- No setup fee (Verified published value)None
- Offboarding fee
- Not publicly disclosed (Not publicly disclosed)
- Minimum headcount
- Not publicly disclosed (Not publicly disclosed)
- Minimum term
- Not publicly disclosed (Not publicly disclosed)
- Cancellation
- Could not verify (Could not verify)
- Deposit
- No deposit (Verified published value)No standard deposit; reserve payments only in rare high-risk cases
- Currency conversion
- Uses a proprietary or forward FX rate; exact markup not disclosed (Not publicly disclosed)Uses a proprietary or forward FX rate; exact markup not disclosed. Rate fixed when payroll is processed. Applies to payroll funding and invoice line items. EOR Lens does not assume a figure where the provider publishes none.
Provider fees can vary by country, plan or billing term, so a provider-level starting price is not automatically the exact fee for this country. Information a provider does not publish is never treated as zero, free, no minimum or no deposit. These facts are shown for transparency: publishing more of them does not improve a provider's position in any ranking, and provider currency-conversion terms remain outside the totals.
Paid link · EOR Lens may earn a fee if you sign up through this link.
$699/employee/month on remote.com/pricing (verified 4 Sep 2026), with no platform, onboarding or setup fees and no standard deposit; Remote says reserve payments apply only in rare high-risk cases.· verified 2026-09-04
Totals cover verified provider charges only. Some providers publish an FX method, timing rule or markup, while others do not. Provider-specific currency-conversion cost is excluded rather than guessed and is not assumed to be zero; published terms remain stated on each provider's profile. Your invoice may differ where conversion is required.
Comparison totals exclude customer-specific transaction taxes such as VAT, GST or withholding.
Mid-market FX from bundled fallback (2026-08-28) · currency-conversion cost is not estimated here, so none is applied to the platform fee; where a provider publishes FX terms they appear in that provider’s fees and terms. Bundled fallback rates
Transaction taxes & conditional costs
No universal EOR tax is added to this estimate. Customer-side VAT, GST, withholding and similar transaction taxes depend on your business location, your tax status and the provider's invoicing entity, so they are shown as treatment rather than added as an amount.
United States: No federal VAT or GST treatment depends on your tax status and the provider's invoicing entity.
Treatment depends on subnational rules or on how the specific provider's service is classified, so no country-level figure can be stated. No transaction-tax amount is included in the figures shown.
- There is no input credit. Where sales or use tax applies it is a final cost, not recoverable.
- Employment-service definitions turn on supervision and control tests (Seaton Corp. v. Testa, Ohio).
- Whether an EOR fee is a taxable employment service or a non-taxable administrative service is provider and contract specific.
- Treatment is decided below national level, so EOR Lens does not state a national figure.
Conditional costs such as immigration, visa or government filing fees and required local benefits are excluded unless specifically modelled.
Potential termination liability, such as statutory severance or notice pay, is an event-driven cost. It is never part of the annual employer cost, the provider ranking, Lowest verified cost or Top Match.
Learn how transaction tax is treated
Sources: Temporary staffing services now subject to sales tax, Washington DOR · Ruling 2018-2, Sales and Use Taxes, Personnel Services, Connecticut DRS · Seaton Corp. v. Testa, 2018-Ohio-4911, Supreme Court of Ohio · reviewed 2026-09-06
Next step
What makes up the 5.5% employer add-on in Canada
Each employer-side contribution behind the rate used in the calculator above. Last reviewed 2026-06-22.
| Contribution | Employer rate | Notes |
|---|---|---|
| Canada Pension Plan (CPP), Tier 1 | 5.95% | On earnings between $3,500 and $74,600 (YMPE 2026) |
| CPP2 (second tier, introduced 2024) | 4.0% | On earnings between $74,600 and $85,000 (YAMPE 2026) |
| Employment Insurance (EI), employer | 2.32% | 1.4× employee rate (1.66%), capped at $63,200 earnings (2024) |
| Provincial WCB/WSIB | 0.5–3.0% | Office workers in Ontario ~0.5%, construction much higher |
| EHT (Ontario Employer Health Tax) | 0.98–1.95% | Only on Ontario payroll >$1M annually; below threshold = 0% |
| Quebec QPP / QPIP / FSS (Quebec only) | +3–5% | Quebec replaces CPP with QPP (6.4%); adds QPIP (0.692%) + FSS health services (1.65–4.26%) |
Exit cost to budget for: Employment Standards Act minimums: 1 week after 3 months, scaling to 8 weeks after 8+ years. Common law notice (for non-union employees) is much higher: Bardal factors typically yield 1 month per year of service for executives. Ontario: in addition to ESA notice, employers with $2.5M+ payroll owe 1 week per year of service (capped at 26 weeks) as severance pay under ESA s.64. Common-law claims by terminated executives often exceed ESA minimums substantially.
Employer statutory components in Canada
Each charge behind the figures above, computed on an annual base salary of C$83,148 CAD at 2026-09-07, with the rate, base, ceiling and authority that produce it.
| Component | Annual amount | How it is calculated | State | Source |
|---|---|---|---|---|
| Canada Pension Plan, employer contribution | C$4,230 |
In force from 2026-01-01. | Calculated on a stated assumption |
|
| Canada Pension Plan second additional contribution (CPP2), employer | C$342 |
In force from 2026-01-01. | Calculated on a stated assumption |
|
| Employment Insurance, employer premium at the reduced Québec rate | Not costed |
This charge depends on employer facts not supplied here (employment work location). It is excluded from the known subtotal, not counted as zero. In force from 2026-01-01. | Needs one more fact |
|
| Québec Pension Plan, employer contributionRégime de rentes du Québec | Not costed |
This charge depends on employer facts not supplied here (employment work location). It is excluded from the known subtotal, not counted as zero. In force from 2026-01-01. | Needs one more fact |
|
| Québec parental insurance plan, employer premiumRégime québécois d'assurance parentale (RQAP) | Not costed |
This charge depends on employer facts not supplied here (employment work location). It is excluded from the known subtotal, not counted as zero. In force from 2026-01-01. | Needs one more fact |
|
| Quebec Pension Plan second additional contribution (QPP2), employerRegime de rentes du Quebec, regime supplementaire | Not costed |
This charge depends on employer facts not supplied here (employment work location). It is excluded from the known subtotal, not counted as zero. In force from 2026-01-01. | Needs one more fact |
|
| Québec health services fund contribution, payroll above the upper thresholdFonds des services de santé (FSS) | Not costed |
This charge depends on employer facts not supplied here (the employer's total annual wage bill). It is excluded from the known subtotal, not counted as zero. In force from 2026-01-01. | Needs one more fact |
|
| Québec workforce skills development levyContribution au Fonds de développement et de reconnaissance des compétences de la main-d'œuvre | Not costed |
This charge depends on employer facts not supplied here (the employer's total annual wage bill). It is excluded from the known subtotal, not counted as zero. In force from 2026-01-01. | Needs one more fact |
|
| Ontario employer health tax, above the exemption | Not costed |
This charge depends on employer facts not supplied here (the employer's total annual wage bill). It is excluded from the known subtotal, not counted as zero. In force from 2026-01-01. | Needs one more fact |
|
| British Columbia employer health tax, above the notch band | Not costed |
This charge depends on employer facts not supplied here (the employer's total annual wage bill). It is excluded from the known subtotal, not counted as zero. In force from 2026-01-01. | Needs one more fact |
|
| Manitoba health and post-secondary education levy, above the notch band | Not costed |
This charge depends on employer facts not supplied here (the employer's total annual wage bill). It is excluded from the known subtotal, not counted as zero. In force from 2026-01-01. | Needs one more fact |
|
| Newfoundland and Labrador health and post-secondary education tax, above the exemption | Not costed |
This charge depends on employer facts not supplied here (the employer's total annual wage bill). It is excluded from the known subtotal, not counted as zero. In force from 2026-01-01. | Needs one more fact |
|
| Workers' compensation premium (Ontario WSIB) | Not costed |
This charge depends on employer facts not supplied here (employment work location). It is excluded from the known subtotal, not counted as zero. In force from 2026-01-01. | Needs one more fact |
|
| Workers' compensation premium (provincial or territorial board) | Not costed |
This charge depends on employer facts not supplied here (employment work location). It is excluded from the known subtotal, not counted as zero. In force from 2026-01-01. | Needs one more fact |
|
| Work-injury insurance premium (Québec CNESST) | Not costed |
This charge depends on employer facts not supplied here (employment work location). It is excluded from the known subtotal, not counted as zero. In force from 2026-01-01. | Needs one more fact |
|
Assumptions used
- Canada has no single national employer charge. Without a province the calculation must assume one, and 'outside Quebec' is the majority case; it also silently drops every provincial health tax, payroll levy and workers' compensation premium, which is why the honest result is a subtotal rather than a total.
Charges not included in the figures above
- Employment Insurance, employer premium at the reduced Québec rate: This charge depends on employer facts not supplied here (employment work location). It is excluded from the known subtotal, not counted as zero.
- Québec Pension Plan, employer contribution: This charge depends on employer facts not supplied here (employment work location). It is excluded from the known subtotal, not counted as zero.
- Québec parental insurance plan, employer premium: This charge depends on employer facts not supplied here (employment work location). It is excluded from the known subtotal, not counted as zero.
- Quebec Pension Plan second additional contribution (QPP2), employer: This charge depends on employer facts not supplied here (employment work location). It is excluded from the known subtotal, not counted as zero.
- Québec health services fund contribution, payroll above the upper threshold: This charge depends on employer facts not supplied here (the employer's total annual wage bill). It is excluded from the known subtotal, not counted as zero.
- Québec workforce skills development levy: This charge depends on employer facts not supplied here (the employer's total annual wage bill). It is excluded from the known subtotal, not counted as zero.
- Ontario employer health tax, above the exemption: This charge depends on employer facts not supplied here (the employer's total annual wage bill). It is excluded from the known subtotal, not counted as zero.
- British Columbia employer health tax, above the notch band: This charge depends on employer facts not supplied here (the employer's total annual wage bill). It is excluded from the known subtotal, not counted as zero.
- Manitoba health and post-secondary education levy, above the notch band: This charge depends on employer facts not supplied here (the employer's total annual wage bill). It is excluded from the known subtotal, not counted as zero.
- Newfoundland and Labrador health and post-secondary education tax, above the exemption: This charge depends on employer facts not supplied here (the employer's total annual wage bill). It is excluded from the known subtotal, not counted as zero.
- Workers' compensation premium (Ontario WSIB): This charge depends on employer facts not supplied here (employment work location). It is excluded from the known subtotal, not counted as zero.
- Workers' compensation premium (provincial or territorial board): This charge depends on employer facts not supplied here (employment work location). It is excluded from the known subtotal, not counted as zero.
- Work-injury insurance premium (Québec CNESST): This charge depends on employer facts not supplied here (employment work location). It is excluded from the known subtotal, not counted as zero.
Rules 0.1.0-stat-0b1 · values 0.1.0-stat-0b1 · evidence 0.1.0-stat-0b1. Compiled from the published sources above; not an independent payroll or tax review.
Sources and methodology
Effective dates, verification dates, authorities and assumptions behind every figure above.
Statutory sources for Canada
Each authority below supports a specific part of the employer-cost calculation on this page.
| Source authority | Component supported | Effective | Last verified | State |
|---|---|---|---|---|
| Canada Revenue Agency, CPP contribution rates and maximums | Canada Pension Plan (base and enhanced) | 2026-01-01 | 2026-09-07 | Verified |
| Canada Revenue Agency, second additional CPP contribution rates | Second additional CPP contribution (CPP2) | 2026-01-01 | 2026-09-07 | Verified |
| Canada Employment Insurance Commission, 2026 premium rate | Employment Insurance (employer premium, outside Quebec) | 2026-01-01 | 2026-09-07 | Verified |
| Ontario Ministry of Finance, Employer Health Tax | Provincial employer health and payroll taxes | 2026-01-01 | 2026-09-07 | Not quantifiable |
| Association of Workers' Compensation Boards of Canada | Workers' compensation premiums | 2026-01-01 | 2026-09-07 | Not quantifiable |
Cost FAQ · Canada
For a C$83,148 CAD hire, the monthly cost of employing through an EOR (gross pay, employer contributions, the platform fee and amortised one-time fees) runs from about C$7,586 on the lowest-cost provider on the known subtotal to C$8,279 on the highest. The platform fee is a small slice of that; the bulk is salary plus the roughly 5.5% statutory employer burden. Currency conversion is excluded rather than estimated; where a provider publishes FX terms we state them on that provider's own facts instead of folding them into a total. This is a known subtotal for Canada, not a complete employer cost: at least one employer charge is not quantified here, and nothing has been assumed in its place.
For the C$83,148 profile above, RemoFirst is the lowest-cost provider in Canada on the known statutory subtotal. Because at least one employer charge in Canada is not quantified here, that is a comparison of provider charges rather than a complete verified cost. The ordering can also change at a different salary, so re-run the calculator at the band you are actually hiring in.
Three reasons. (1) Statutory employer contributions in Canada add about 5.5% on top of cash salary, paid into social security, pension, healthcare and any payroll levies. (2) The EOR adds a flat per-employee monthly fee, roughly $199–$699 across the providers we compare. (3) Deposits, typically one to two months of cost, tie up working capital until offboarding.
No. The platform fee covers legal employment, payroll processing, statutory filings, and benefits administration. The ~5.5% employer-side contributions are passed through at cost; you pay them in addition to the platform fee. Treat the sticker fee as a service line and the contributions as a tax line.
Once you're committed to 10–20+ headcount in Canada, an own-entity setup can beat EOR economics despite roughly $15k–$40k setup and $10k–$25k/year compliance (varies widely by jurisdiction; verify with local counsel). Below that, the EOR fee is far cheaper than carrying a legal entity. Use the EOR-vs-entity calculator to pinpoint your break-even.
Related
- Hiring guide: Employer of Record in Canada Statutory benefits, termination and contracts.
- Global EOR cost breakdown
- EOR vs own entity break-even
Keep going on Canada
- Employer of Record in Canada: hiring guide
- EOR cost in every country we model
- EOR vs contractor: which one fits this hire
- All EOR providers we track
- How we work these numbers out
Related pages
Other Americas hiring markets we model
Same canonical region as Canada, ranked by hiring volume and comparable employer contribution levels.
Provider metadata (FX terms, deposit, entity ownership) and statutory tax brackets are sourced from public materials and official government publications. Provider headline pricing last re-verified 22 October 2026; statutory data last reviewed 28 August 2026; bundled fallback exchange rates dated 28 August 2026 (live rates are used when available). Some providers publish an FX method, timing rule or markup, while others do not. Provider-specific currency-conversion cost is excluded from every total and ranking rather than guessed; exclusion does not mean zero. Confirm conversion terms in writing with the provider before signing.