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Payroll and Benefits Guide Canada – British Columbia

Last updated: Apr 09, 2023

Currency
Canadian Dollar (CAD)
Employer Taxes
Unknown
Payroll Frequency
Bi-weekly / Monthly
Employee Costs
7.58%
Capital
Victoria
Date Format
yyyy/mm/dd
Fiscal Year
The government's financial year is 1st April to 31st March. For individual taxpayers, the fiscal year is the calendar year, 1st January to 31st December.
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Contribution

Employer
Employer Payroll Contributions
5.95%
Canada Pension Plan (CPP) (applied on salary between 3,500 CAD to 68,500 CAD annually)
4.00%
Canada Pension Plan 2 (CPP2), applied on salary between 68,500 CAD and 73,200 CAD
2.32%
Federal Employment insurance (applied on salary up to 61,500.00 CAD annually)
1.55%
Workers Compensation contribution, applied on income up to 116,700 CAD
9.78%
Total Employment Cost
Employee
Employee Payroll Contributions
5.95%
Canada Pension Plan (CPP) (applied on salary between 3,500 CAD to 68,500 CAD)
4.00%
Canada Pension Plan 2 (CPP2), applied on salary between 68,500 CAD and 73,200 CAD
1.66%
Employment Insurance (EI) (applied in salary up to 61,500 CAD annually)
7.58%
Total Employee Cost
Employee Income Tax
Federal:
15.00%
up to 55,867.00 CAD
20.50%
55,867.01 CAD to 111,733.00 CAD
26%
111,733.01 CAD to 173,205.00 CAD
29.00%
173,205.01 CAD to 246,752.00 CAD
33%
246,752.00 CAD and over
British Columbia:
5.06%
up to 47,937 CAD
7.7%
47,937.01 CAD to 95,875.00 CAD
10.5%
95,875.01 CAD to 110,076.00 CAD
12.29%
110,076.01 CAD to 133,664.00 CAD
14.7%
133,664.01 CAD to 181,232.00 CAD
16.80%
181,232.01 CAD to 252,752.00 CAD
20.5%
252,752.01 CAD and over

Employer taxes

Highest
Lowest

Employee taxes

Highest
Lowest

Minimum Wage

General

The standard minimum wage in British Columbia is 15.65 CAD per hour, 13.00 CAD for students and employees under 18. The minimum wage rate set for employees of federally regulated organizations will be the current minimum wage rate specified in the jurisdiction in which the employee performs the work.
This minimum wage now also applies to liquor servers (an employee who works mainly as a server of food or drink or both or who regularly serves liquor directly to customers, guests, members, or patrons, etc.), who had previously been subject to a lower minimum wage.

MINIMUM WAGE (PER MONTH)

Highest
Lowest

Payroll

Payroll Cycle

An employer has 1 month to remit an employee’s first pay. After this, wages must be paid at regular intervals of no more than 16 days, or 1 month in case of managerial personnel. If pay day falls on a statutory holiday, the wages must be paid on the preceding working day.

13th Salary

There is no legislation for 13th-month payments in Alberta, Canada.

Authority Payments

Authority Payment

Paid To

Due Date

Method

Federal Taxes, Employer contribution + withholding taxes

CRA

Either monthly or semi monthly

e-check

Health Contribution

EHT

Monthly

e-check

Working Hours

General

A full-time workweek is 40 hours, 8 hours per day, 5 days a week.

Overtime

An employer must pay overtime pay for any hours above 44 weekly hours at a rate that is at least 150.00% of the employee’s regular rate of pay or one hour of time off in lieu.
In exceptional circumstances, when an employee is called into work (during rest/ non-working time), overtime should be paid for at least 3 hours of pay at the minimum wage, even if they work less than 3 hours. (Labor Code, § 16 and Labor Regulation § 13.3; Bill 17 and Employment Standard Regulation). From the 12th hour of overtime work the payment is increased to 200.00% of the regular rate of pay. Overtime exempt status is in place for certain job types e.g.,  many managerial and supervisory positions.

Leave

Annual Leave (vacation)

In British Columbia, employees are entitled to two consecutive weeks of vacation leave after the first year of employment and three consecutive weeks of leave after five years of employment, however, it is common to offer leave from day 1.
Employees are entitled to vacation pay of 4% of the regular salary rate of pay for the first five years of employment and 6% of the regular salary rate of pay after five years of employment. Employees are entitled to receive the payment within seven days before the commencement of a vacation.

Public Holidays

There are 10 public holidays in British Columbia. When public holidays fall on a weekend, it is customary to give off in lieu either the previous working day or next working day.

Date Day Holiday Notes
1 Jan 2024 Monday New Year’s Day
19 Feb 2024 Monday Family Day
29 Mar 2024 Friday Good Friday
20 May 2024 Monday Victoria Day
1 Jul 2024 Monday Canada Day
5 Aug 2024 Monday BC Day
2 Sep 2024 Monday Labour Day
14 Oct 2024 Monday Thanksgiving
11 Nov 2024 Monday Remembrance Day
25 Dec 2024 Wednesday Christmas Day

Sick Days

The Canada Labour Code was updated with effect from December 1, 2022, to provide 10 days of paid sick leave to employees in the federally regulated private sector, (which is limited to specific industries)  There is a thirty day qualifying period for covered employees; therefore, on December 31, employees who have been continuously employed for at least 30 days will have access to their first three days of paid sick leave. As of February 1, 2023, employees will acquire a fourth day, and will continue to accumulate one day a month up to a maximum of 10 days per year.

Effective December 18, 2022, Canada’s Employment Insurance sickness benefits were extended from 15 weeks to 26 weeks. As such, qualified individuals who establish a new claim on or after December 18, 2022 will receive up to 26 weeks of Employment Insurance sickness benefits, paid at 55% of their average weekly insurance earnings, for up to a maximum of $650 per week in 2023.

Maternity Leave

Employees are entitled to up to 17 weeks of leave if the employee has completed at least one year of employment before the due date. Maternity leave may not begin before the 17th week preceding the expected delivery date and shall end not later than 18 weeks after. If the delivery occurs after the expected date, the employee is entitled to at least two additional weeks of maternity leave. Special maternity leave may begin four weeks before the expected delivery date when there is a risk of termination of her pregnancy or a danger for the health of the mother or unborn child caused by the pregnancy. Two weeks’ notice and a medical certificate is required.

Employment insurance provides maternity and parental benefits to:

  • People who are away from work because they’re pregnant or have recently given birth
  • Parents who are away from work to care for their newborn or newly adopted child
  • Workers are entitled to 55% of their earnings for 15 weeks up to a maximum of CAD650 a week

Maternity benefits are only available to the person who is away from work because they’re pregnant or have recently given birth. They can’t be shared between parents.

The person receiving maternity benefits may also be entitled to parental benefits.

Maternity benefits can be followed by parental benefits. You may apply for both at once.

For further information visit the Government of Canada website.

Paternity Leave

Paternal leave falls under parental leave.

Parental Leave

Parents are entitled to up to 63 weeks of leave to care for a newborn or adopted child. The parental leave cannot begin before the week of birth or when the child is legally adopted.
The leave should begin no later than 78 weeks after the birth or adoption.

Employment insurance provides maternity and parental benefits to:

  • People who are away from work because they’re pregnant or have recently given birth
  • Parents who are away from work to care for their newborn or newly adopted child

The assistance details are as follows:

Benefit name Maximum weeks Benefit rate Weekly max
Standard parental Up to 40 weeks can be shared between parents, but one parent cannot receive more than 35 weeks of standard benefits 55% up to $650
Extended parental Up to 69 weeks can be shared between parents, but one parent cannot receive more than 61 weeks of extended benefits 33% up to $390

For further information visit the Government of Canada website.

Other Leave

In British Columbia, employees are entitled to 3 days of mandatory leave for the bereavement of a family member and approximately 27 weeks of leave for compassionate care leave.
Employees are also entitled to up to 37 weeks of leave in the case of a critical illness, up to 104 weeks in the event of the death of an employee’s child, or in the case that a child has disappeared.
In British Columbia, all employers must provide their full-time, regularly employed employees, job-protected, unpaid leave for their duty as jurors or as a witness in a case, responding to a subpoena: or acting as a plaintiff or defendant in the courts. Employees must provide a copy of the jury summons to the employer as evidence of the requirement.
Reservist Leave regulations require employers to provide up to 20 days of unpaid leave each calendar year for annual training for reservists once they have completed at least 26 consecutive weeks of service with the same employer. An employee may take reservist leave for the following reasons:

  • deployment to a Canadian forces’ operation outside Canada
  • deployment to a Canadian forces operation inside Canada that is assisting with an emergency or the aftermath of an emergency
  • annual training, included related travel time, for up to 20 days in a calendar year
  • other operations set out as such in the Employment Standards Regulation by the minister
Vacation Days
Public Holidays
Highest
Lowest

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Termination

Termination Process

There are two ways an employer can terminate an employment contract:

  • Providing written notice to the employee
  • Termination due to just cause

It is important to note that the final payment to the employee must be made:

  • Within 48 hours after the last day when the employer ends the employment agreement
  • Within 6 days after the last day when the employee ends the employment agreement

Notice Period

In general, notice periods in British Columbia, Canada, are not required, but it is common to give one month’s notice.

Severance Pay

In British Columbia, severance pay is mandated and determined by common law with the amount of severance pay determined by the length of service.

  • At least 3 months of employment – 1 week
  • 3 months to 1 year – two weeks’ pay
  • 1 year+ – 3 weeks’ pay for one year of service followed by an additional week payment per year of service, up to a maximum of eight years

Probation Period

The probation period in British Columbia for permanent employees is generally a minimum of 3 months.

Common Benefits

  • Cell phone and internet allowance up to 250 CAD a month.
  • Supplementary health care/dental plan (which typically cover costs of items or care that are not covered by Canada’s universal healthcare system such as prescription drugs or visionware).
  • Private pension – employer match between 2-6 % of base salary.

VISA

VISA

The Government of Canada operates the Temporary Foreign Worker Program to enable foreign citizens to apply to work in Canada for a set period. The program covers all job roles and knowledge levels, and it can be used when a qualified Canadian citizen or permanent resident is not available or suitable for the role.
There are federal (Government of Canada) immigration programs and provincial programs (Government of British Columbia) in place in British Columbia.

VAT

General

Canadian Federal GST is charged at 5%. British Columbia PST is 7%, resulting in a combined GST and PST rate of 12.00%.

Stay up to date on payroll & employment law changes

Version History

June 1, 2022
The minimum wage has increased to 15.65 CAD.
May 23, 2022
Payroll contributions and personal income tax rates have been updated.
February 20, 2022
Payroll contributions and personal income tax rates have been updated.
January 1, 2021
Canada Pension Plan contributions for the employee and employer contribution rates increased to 5.45%.
Minimum wage increased to $15.20/hr.
Tax brackets increased for all tax rates for both federal and state taxes
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Questions & Answers

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Leah
Leah
1 year ago

What are some common non-mandatory benefits employers provide their workers?

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Leah

Some common benefits include cell phone and internet allowance, car allowance, supplementary health care/dental plan (which typically cover costs of items or care that are not covered by Canada’s universal healthcare system such as prescription drugs or vision ware), and private pension contribution of the employer (2-6 % of base salary).

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Payroll and Benefits Guide in Canada – British Columbia

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Payroll and Benefits Guide
in Canada – British Columbia

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

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Public Holidays Calendar

Canada – British Columbia
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CSV
PDF
ICS
Date Day Holiday Notes
1 Jan 2024 Monday New Year’s Day
19 Feb 2024 Monday Family Day
29 Mar 2024 Friday Good Friday
20 May 2024 Monday Victoria Day
1 Jul 2024 Monday Canada Day
5 Aug 2024 Monday BC Day
2 Sep 2024 Monday Labour Day
14 Oct 2024 Monday Thanksgiving
11 Nov 2024 Monday Remembrance Day
25 Dec 2024 Wednesday Christmas Day