Wages & Benefits

It is estimated that Canadian statutory and employer sponsored benefit costs are currently 8.6% lower than similar U.S. costs. Experience at local companies suggests that employee benefit costs approximate 35% of base wages and salaries. This includes 20% for statutory benefits and 15% for optional programs. Government regulated benefits include Vacation, Holidays, Employment Insurance, Canada Pension Plan, Employer Health Tax and Workplace Safety Insurance. A breakdown of statutory and optional benefit costs reflects the following expressed as a % of base compensation.

Statutory Benefit Costs - 20%

• Vacation (two weeks minimum requirement)
• Holidays (9 public holidays minimum requirement)
• Employment Insurance (on earnings to a maximum C$44,200)
• Canada Pension Plan (on pensionable earnings to a maximum C$48,300)
• Workplace Safety Insurance (on earnings to a maximum C$79,600)
• Employer Health Tax (on gross payroll greater than C$400,000)

Optional Benefit Costs - 15%

• Health, dental, life and disability insurance
• Company pension (cost normally shared between employees and employer)
• Additional vacation days
• Additional holidays

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