Employer of Record in Canada

What it costs and what the law requires to employ someone in Canada through an EOR, with every figure cited to a primary source.

At a glance

To employ someone in Canada, an employer pays ~7-11% (employer CPP 5.95% + CPP2 4.00% on the upper band + EI 2.28%; all capped, so the effective rate falls at higher salaries)↗ in mandatory contributions on top of gross salary, must give 2 weeks (10 days), federal↗ of paid annual leave, and 1-8 weeks (Ontario, by tenure)↗ of notice to terminate. An EOR lets you hire here without your own legal entity.

Employer cost burden
~7-11% (employer CPP 5.95% + CPP2 4.00% on the upper band + EI 2.28%; all capped, so the effective rate falls at higher salaries)↗
Statutory annual leave
2 weeks (10 days), federal↗
Every country's annual leave
Minimum wage
C$18.15/hour (federal, from 1 Apr 2026)↗
Every country's minimum wage
Notice period
1-8 weeks (Ontario, by tenure)↗
Standard working week
40 hours (federal standard)↗
Currency
CAD↗

Every figure links to the page that states it. This page's figures were read at their sources between Aug 18, 2026 and Oct 30, 2026, and every cited page is checked again each week (how we verify).

Best fits

Best EOR providers for one employee in Canada

Ranked the way Get matched ranks a hire: employing through its own entity in Canada, a lower published fee and no deposit, each read from the provider's own pages. A provider whose referral program pays us carries a labeled referral boost, and the few providers we do not work with are listed below, never among these three.

Set team size or visa need, and get quotesStill looking for the person? Ask for candidates tooHow referral programs affect ranking

Hiring demand

Remote jobs open only to people in Canada

Companies hiring remotely for a role that must be based in Canada need someone employed there. Without an entity of their own in Canada, an employer of record is how they do it.

Companies hiring full-time
1,102↗
Contract roles
519↗

Canada ranks #2 of 177 countries↗ for full-time remote jobs open only to its residents. Most hired fields: Developer, Sales, Customer Service.

Counted daily from job postings on Himalayas, a remote job board: a job counts for a country when it accepts applicants based only there. Counting began Oct 29, 2026; a job posted before then counts if it was still open that day. Last updated Nov 11, 2026.

Cost of employment

What an employer pays in Canada

The statutory employer contributions that sit on top of gross salary, each cited.

Rates are the statutory employer contributions; the total employer burden in Canada is ~7-11% (employer CPP 5.95% + CPP2 4.00% on the upper band + EI 2.28%; all capped, so the effective rate falls at higher salaries)↗. Confirm the current rates for your case before hiring. Compare employer costs in every country. Compare employer pension contributions in every country.

Total cost

What an EOR really costs in Canada

The full cost to employ combines gross salary, the statutory employer burden, and the EOR provider's own service fee.

The total cost to employ someone in Canada through an EOR is their gross salary, plus ~7-11% (employer CPP 5.95% + CPP2 4.00% on the upper band + EI 2.28%; all capped, so the effective rate falls at higher salaries)↗ in mandatory employer contributions, plus a per-employee service fee from the provider. Across the 56 of 93 providers that publish a fee, the median is $349/employee/month (from $99 to $740); the rest quote per country.

Flat-rate illustration at a $100,000↗ salary
Gross salary
$100,000↗
Employer statutory contributions (~8%↗)
$8,000
EOR service fee (median $349/mo)
$4,188
Illustrative annual budget
$112,188

This illustration applies the representative rate to the full salary. It does not apply contribution caps, local-currency thresholds or employee eligibility rules, so it is not a payroll quote. Actual cost depends on the salary, the provider, and country-specific quotes; some countries also add mandatory items such as 13th-month pay or severance accruals. Run your own numbers in the calculator.

Providers

EOR providers that employ in Canada

Each provider below names Canada on its own website as a country where it offers Employer of Record. Cheapest published starting fee first.

47 providers name Canada on their own websites as a country where they offer EOR. Published starting fees among them run from $99 /mo↗ (Native Teams) to $699 /mo↗ (Oyster HR and Safeguard Global); 14 quote Canada on request. 6 of them say they employ here through their own entity.

Setting up your own company in Canada instead? The usual form is a federal corporation (CBCA). Government fee to register: CAD 200 online (CAD 100 more for 4-hour express service)↗. Resident director: Yes: at least 25% of directors resident Canadians (one if fewer than four directors)↗. EOR or your own entity: everything it takes, each from its official source.

Not sure which one fits? We rank these providers for your team size and visa needs, and get you quotes from the ones you pick.

Get matched

Before you sign with one of them: the questions worth asking each provider. Already employing someone in Canada through an employer of record? Check what you pay against these fees.

A listing is the provider's own statement that it can employ in Canada, read on its site on Nov 9, 2026. Fees are each provider's cheapest published rate, not a quote for Canada. We read the country lists and country pages of all 93 providers we track; 78 name the countries they serve, and a provider that does not name Canada on its own site is not shown here, even where it may serve it. Confirm availability for your role and contract type before signing.

Employment law

Statutory rules in Canada

The employment terms an employer must meet, each linked to the source that states it.

Paying someone in Canada as a contractor instead? The tax authority asks whether the person is in business on their own account, and since 2024 federally regulated employers must prove a paid person is not their employee. Check whether the role is employment, or read how Canada decides and what misclassification costs.

Hiring

How to hire in Canada

Two ways to put someone on payroll here.

Use an employer of record

An EOR already has an entity in Canada and employs your worker on your behalf, handling payroll, tax and the statutory terms above. Fastest way to hire without incorporating.

Compare EOR providers

Estimate the full cost

Add the ~7-11% (employer CPP 5.95% + CPP2 4.00% on the upper band + EI 2.28%; all capped, so the effective rate falls at higher salaries)↗ employer burden to salary and an EOR service fee to see your true monthly cost to employ in Canada.

Open the cost calculator
Economy

Canada at a glance

World Bank indicators (2025) for context on the labour market.

GNI per capita (Atlas method)
$56,420↗
GDP per capita
$55,698↗
GDP (current US$)
$2.3T↗
GDP growth
1.7%↗
Inflation, consumer prices
2.1%↗
Population, total
41.7M↗
Population ages 15-64
64.8%↗
Urban population
82.9%↗
Labour force, total
22.8M↗
Labour force participation rate
64.5%↗
Female labour participation rate
60.2%↗
Male labour participation rate
68.9%↗
Unemployment rate
6.9%↗
Wage & salaried workers
87.1%↗
Self-employed
12.9%↗
Questions

Hiring in Canada: FAQ

How much does it cost to employ someone in Canada?

On top of gross salary, mandatory employer contributions in Canada run ~7-11% (employer CPP 5.95% + CPP2 4.00% on the upper band + EI 2.28%; all capped, so the effective rate falls at higher salaries)↗, made up of CPP (employer) 5.95% on earnings from $3,500 to $74,600 a year (maximum $4,230.45)↗; EI (employer) 2.28% (1.4x employee)↗. An employer of record adds its own per-employee service fee on top; across the 56 of 93 providers that publish a fee, the median is $349 per employee per month.

What does an EOR charge to employ someone in Canada?

EOR service fees are billed per employee per month, on top of salary and statutory employer contributions in Canada. The contribution basis is ~7-11% (employer CPP 5.95% + CPP2 4.00% on the upper band + EI 2.28%; all capped, so the effective rate falls at higher salaries)↗. Providers rarely publish a Canada-specific fee: across the 56 providers on our price board that publish a price, the median is $349 per employee per month (from $99 to $740), and the rest quote per country. Request a quote for Canada for an exact figure.

How much paid annual leave is mandatory in Canada?

Statutory paid annual leave in Canada is 2 weeks (10 days), federal↗.

What is the statutory notice period in Canada?

The minimum employer notice period in Canada is 1-8 weeks (Ontario, by tenure)↗.

What is the minimum wage in Canada?

The statutory minimum wage in Canada is C$18.15/hour (federal, from 1 Apr 2026)↗.

What is the maximum probation period in Canada?

The maximum statutory probation period in Canada is No statutory maximum (set by contract; ESA notice rights start at 3 months)↗.

Which EOR providers can employ someone in Canada?

47 of the 93 providers we track name Canada on their own websites as a country where they offer Employer of Record. By published starting fee: Native Teams from $99 /mo↗, Asanify from $199 /mo↗, Boundless from $199 /mo↗, Global Squirrels from $199 /mo↗, Gloroots from $199 /mo↗, and 28 more with a published fee; 14 quote Canada on request. Each provider's listing is its own claim, so confirm availability for your role and contract type before signing.

How many companies are hiring remotely in Canada?

In the 30↗ days to Nov 11, 2026, 1,102 companies↗ posted 2,895↗ full-time remote jobs open only to people based in Canada on the Himalayas job board, plus 519↗ contract roles, which ranks Canada #2 of 177 countries↗. The most hired fields are Developer, Sales, Customer Service. A company hiring this way without its own entity in Canada employs through an employer of record.

Do I need a local entity to hire an employee in Canada?

No. An employer of record (EOR) already holds a legal entity in Canada and can employ your worker there on your behalf, running local payroll, tax and compliance, so you can hire without setting up your own entity. That settles the employment side only: what the person does for your company (signing or negotiating its contracts, running a sales team, working from one place for most of the year) can still make your company taxable in Canada as a permanent establishment, whoever employs them.

When a hire abroad makes your company taxable there

Nearby

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