Canada Employee Cost Calculator
See the true cost of employing someone in Canada — gross salary plus an estimated 10.7% in employer social contributions.
Cost of an employee in Canada
Employer contribution breakdown
| Contribution | Rate | Annual amount |
|---|---|---|
| CPP (employer share) | 5.95% | — |
| EI (1.4× employee rate) | 2.28% | — |
| Provincial health/payroll levy (typical) | 2.47% | — |
| Total employer contributions | 10.7% | — |
Employer costs in Canada
In Canada, statutory employer cost is roughly 8–11% on top of salary — CPP and EI federally, plus a provincial health or payroll levy that varies by province.
- CPP (employer share) is 5.95% and EI is 1.4× the employee rate (~2.28%), both capped at annual maximums.
- Provinces add their own employer levies — e.g., Ontario's EHT (~1.95% above an exemption) or Quebec's higher QHSF/QPIP.
- Quebec runs its own QPP and QPIP, so employer cost there is higher than the figure above.
This is a federal-plus-typical-provincial estimate. CPP and EI are capped at annual maximums, and the provincial component varies (some employer levies only apply above a payroll threshold). Confirm by province before payroll.
Hire and pay in Canada
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Frequently asked questions
On top of gross salary, an employer pays statutory social-security contributions — around 10.7% in Canada. The total employer cost is the gross salary plus those employer contributions. It does not include optional benefits, equipment, or recruitment costs.
Employers must pay mandatory social-security and payroll charges on top of the gross salary the employee sees. These fund pensions, healthcare, unemployment, and similar schemes, and they are a real, recurring cost of employment.
In most countries several contributions are calculated only up to a maximum income base, so the effective employer rate is lower for high salaries. Treat this calculator as a budgeting estimate rather than exact payroll.
Many companies use an Employer of Record (EOR) to hire compliantly in Canada without opening a local subsidiary. The EOR is the legal employer and handles payroll, contributions, and compliance for a monthly fee.