Country Payroll Guide Canada – Ontario

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Key Facts

Capital
Toronto
Date format
yyyy/mm/dd
Currency
Canadian Dollar (CAD)
VAT
the standard rate is 13%

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 Ontario is 14.25 CAD per hour.

Payroll

Payroll Cycle
Bi-Weekly, Monthly, Bi-Monthly
13th Salary

There are no provisions in the law regarding 13th salaries.

Income Tax

Employee Income Tax (1)
Up to 45,142 CAD - 5.05%
Employee Income Tax (2)
45,142 - 90,287 CAD - 9.15%
Employee Income Tax (3)
$90,287 - 150,000 CAD - 11.16%
Employee Income Tax (4)
150,000 - 220,000 CAD - 12.16%
Employee Income Tax (5)
Over 220,000 CAD - 13.16%

Working Hours

General Working Hours

40 hours per week.

Overtime

Overtime pay is paid for every hour after 44 hours weekly at a rate of at least 150% the regular pay.

The maximum number of hours an employee can work is 48 hours a week unless agreed upon in writing by the employee and employer.

Leave

Paid Time Off

Employees what have been employed for less than 5 years are entitled to a minimum of 2 weeks’ paid leave, while employees who have worked over 5 years are entitled to 3 weeks.

Public Holidays

9 public holidays.

Sick Days

Employees are entitled to 3 unpaid sick days a year if they have been employed for more than 2 weeks.

Maternity Leave

If the woman has been employed for at least 13 weeks, she is entitled to up to 17 weeks of unpaid maternity leave. Maternity leave can start any time starting 17 weeks before the due date.

Paternity Leave

Parental leave rights also extend to the father.

Parental Leave

At the end of the maternity leave, the mother is able to extend the leave with parental leave for up to 61 weeks of unpaid parental leave. Parental leave rights also extend to the father.

Other Leave

N/A.

Termination

Termination Process

If an employee has been employed for at least 3 months, the employer is obligated to provide the employee with written notice of termination or termination pay.

Notice Period

The employee is obligated to give at least 2 weeks’ notice. The length of the notice period that the employer is obliged to depends on how long the employee has been employed.

Severance Pay

The employee must have completed at least 5 years of employment. The company has a payroll of over 2.5 million CAD per year or have terminated over 50 employees in the past 6 months due to all or part of the company closing.

The severance pay amount is calculated by multiplying the weekly salary amount by the number of years the employee has been employed.

Probation Period

3 months.

Visa

Employment Visa

Employer-specific work permit: An employer-specific work permit lets you work in Canada according to the conditions on your work permit, such as: the name of the specific employer you can work for how long you can work the location where you can work (if applicable).

Before you submit your application for an employer-specific work permit, the employer who wants to hire you must complete certain steps and give you either a copy of a Labour Market Impact Assessment or an offer of employment number to include in your application.