Country Payroll Guide Canada – Prince Edward Island

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Key Facts

Capital
Charlottetown
Date format
yyyy/mm/dd
Currency
Canadian Dollar (CAD)
VAT
the standard rate is 15%

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 Prince Edward Island is 13 CAD per hour.

Payroll

Payroll Cycle
Monthly
13th Salary

Not required by law.

Income Tax

Employee Income Tax (1)
0 to 31,984 CAD - 9.8%
Employee Income Tax (2)
31,984- 63,969 CAD - 13.8%
Employee Income Tax (3)
Over 63,969 CAD - 16.7%

Working Hours

General Working Hours

48 hours per week.

Overtime

Employees are entitled to receive 1.5 times their regular wage for each hour worked after 48 in a week.

Leave

Paid Time Off

If an employee is employed by the same employer for less than 8 years: a vacation of 2 weeks after each 12 months of work and within the following 4 months (this 4-month period can be varied if mutually agreed upon by the employer and the employee).

Public Holidays

7 public holidays.

Sick Days

After 3 months continuous service with an employer, an employee is entitled to unpaid leaves of absence of up to 3 days for sick leave during a 12-month period.

Maternity Leave

Up to 17 weeks unpaid leave of absence which can start as early as 13 weeks prior to the expected date of delivery.

Paternity Leave

Not specified by law.

Parental Leave

Up to 62 weeks unpaid leave to care for a newborn.

Other Leave

Special Leave: Employees are entitled to time off work for illness, the arrival of a new child or other personal or family matters without threat of losing their job.

Termination

Termination Process

Written notice required / notice period depending on EE service:

  • 6 months or more but less than 5 years – 1 week
  • 2 years or more but less than 5 years – 2 weeks
  • 5 years or more but less than 10 years – 4 weeks
  • 10 years or more but less than 15 years – 6 weeks
Notice Period

From 1 to 6 weeks – depends on the length of time the employee has been with the employer.

Severance Pay

Generally, severance pay is equal to one week’s pay for every year EE worked, to a maximum of 26 weeks of pay. Severance is paid on a pro rated basis for a year that was not completed.

Probation Period

6 months.

Visa

Employment Visa

Prince Edward Island Provincial Nominee Program (PEI-PNP):

  • min. net worth of CAD $600,000
  • previous management experience and/or business ownership experience
  • approved business plan to do business in PEI, either by purchasing or establishing your own business
  • min. CAD $150,000 investment
  • speak moderate English or French