Canada Compensation

Canada Compensation

According to Canada Payroll regulations, employers must pay employees weekly, bi-weekly, monthly, bi-monthly, or annually. The minimum wage is set by individual provinces and may vary or increase depending on new laws. 

In Canada, the specific compensation laws vary depending on the province. Although maximum work hours vary, overtime follows a fixed rate of one and a half times the employee’s regular pay rate. Depending on the province, overtime may start at above 40 hours or above 44 hours in some cases. Employers cannot require employees to work overtime and cannot refuse the established overtime rates. 

Health Insurance Benefits 

Canada has free public health care through the country’s social security system. However, most companies provide Group Benefit Plans in addition to government-sponsored coverage. About ⅔ of Canadian citizens take out supplemental insurance policies through their employers. Many candidates today expect to receive dental and vision plans, along with disability and life insurance benefits. 

Vacation Leave 

Generally, most employees are entitled to annual paid vacation. In almost all the provinces, employees must receive two weeks of paid vacation after being with the company for one year. Typically, employees receive 2-4 weeks’ paid leave depending on seniority and the industry. Vacation days may carry over with prior arrangements made with the company. 

Holidays 

Canada has both federal and provincial paid public holidays. Six national holidays are widely recognized. 

• New Year’s Day 
• Good Friday*
• Canada Day 
• Labour Day
• Thanksgiving*
• Christmas Day 

*Not all provinces 

Sick Leave 

Canada’s federal labour laws state that workers can take up to five unpaid sick days a year. Government-regulated employers must offer at least three days of paid sick leave per year. 

Maternity Leave 

Pregnant employees receive 17 weeks of maternity leave. To qualify for leave, the employee must have worked for the company for at least six consecutive months and provide the employer a medical certificate of proof confirming the pregnancy. 

Why HR Options? 

HR Options are experts in Canadian HR needs, including keeping up with compensation and employee benefits on your behalf. We help international companies entering Canada by navigating Canadian Employment laws and using best practices.

We offer Canadian outsourced employment services that deliver full HR service. Furthermore, we provide HR consulting services with expert advice and implementation on a fractional or project basis.