Country Payroll Guide Canada – Alberta

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Key Facts

Capital
Edmonton
Date format
yyyy/mm/dd
Currency
Canadian Dollar (CAD)
VAT
the standard rate is 5%

Contributions

Employers

National Pension
National Pension - 5.45%
Employment Insurance
Employment Insurance - 2.21%
Total Employment Cost
Total Employment Cost - 7.66%

Employees

National Pension
National Pension - 5.45%
Employment Insurance
Employment Insurance - 1.58%
Total Employee Cost
Total Employee Cost - 7.03%

Minimum Wage

Minimum Wage
The minimum wage in Canada - Alberta is 13 to 15 CAD per hour.

Payroll

Payroll Cycle
Monthly
13th Salary

There are no provisions in the law.

Income Tax

Employee Income Tax (1)
0 - 131,220 CAD - 10%
Employee Income Tax (2)
131,220 - 157,464 CAD - 12%
Employee Income Tax (3)
157,464 - 209,952 CAD - 13%
Employee Income Tax (4)
209,952 - 314,928 CAD - 14%
Employee Income Tax (5)
Over 314,928 CAD - 15%

Federal Tax

Federal Tax (1)
Up to 49,020 CAD - 15%
Federal Tax (2)
49,020 - 98,040 CAD - 20.5%
Federal Tax (3)
98,040 - 151,978 CAD - 26%
Federal Tax (4)
151,978 - 216,511 CAD - 29%
Federal Tax (5)
Over 216,511 CAD - 33%

Working Hours

General Working Hours

30 to 40 hours per week.

Overtime

The standard rate for all overtime hours is 150% of the employee’s regular wages.

Leave

Paid Time Off

Employees earn paid vacation based on the amount of continuous employment. Employees must take their earned vacation in the 12 months in which they earn it.

  • Less than 1 year of employment – no entitlement unless stated otherwise in the employment contract
  • 1-5 years of employment – 2 weeks’ paid leave
  • 5+ years of employment – 3 weeks’ paid leave
Public Holidays

9 public holidays.

Sick Days

Employees are entitled to up to 16 weeks of leave due to illness or injury. To be eligible, the employee must have been employed for at least 90 days and must provide a medical certificate.

Maternity Leave

Employees with at least 90 days of continuous employment are entitled to 16 consecutive weeks of unpaid leave. Leave can begin 13 weeks prior to the estimated due date.

6 weeks must be taken following the birth unless the employer allows for an early return and the employee provides a medical certificate stating it is safe. If an employer notices that the pregnancy is interfering with the employee’s work, they are permitted to require that the employee begins maternity leave earlier.

Paternity Leave

See parental leave.

Parental Leave

Parents are entitled to 62 weeks of unpaid leave are granted to birth and adoptive parents. Parental leave can begin any time after the birth or adoption of the child and must end within 78 weeks of birth.

Other Leave
  • Bereavement leave: Employees with at least 90 days of continuous leave are entitled to 3 days for bereavement leave per year for the death of an immediate or extended family member. This leave is not paid unless it is stated in the employment contract or collective agreement.
  • Long-term and injury leave: Employees with at least 90 days of continuous employment can take up to 16 weeks of unpaid leave.

Termination

Termination Process

The employer and employee must provide notices when terminating. Once an employee is terminated, they must be paid all wages, overtime pay, vacation pay, general holiday pay, and termination pay within 3 days after their last day of employment.

Notice Period

The notice period depends on the length of employment.

  • 90 days- 2 years of employment – 1 week’s notice
  • 4-6 years of employment – 4 weeks’ notice
  • 6-8 years of employment – 5 weeks’ notice
  • 8-10 years of employment – 6 weeks’ notice
  • 10+ years of employment – 8 weeks’ notice

Payment can be made in lieu of the notice period.

Severance Pay

Severance payment is not required if the employer has provided the proper notice period has been provided.

Probation Period

3 months.

Visa

Employment Visa

Canada has two main types of work permits — open work permit and employer-specific work permit. The country’s Immigration Office issues open work permits to any immigrant who wants to work for an employer for a fixed amount of time. Employer-specific permits allow people to work for only one specific employer in a certain location.