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Canada – Ontario 2022
Day Date Holiday Notes
Saturday Jan-1 New Year's Day
Monday Feb-21 Family Day
Friday Apr-15 Good Friday
Monday May-23 Victoria Day
Friday Jul-1 Canada Day
Monday Aug-1 Civic Holiday
Monday Sep-5 Labour Day
Monday Oct-10 Thanksgiving
Sunday Dec-25 Thanksgiving
Monday Dec-26 Christmas Day
Countrypedia

Canada – Ontario
Payroll and Benefits Guide

Last updated: May 23, 2022
Currency
Canadian Dollar (CAD)
Payroll Frequency
Bi-Monthly/Monthly
Employer Taxes
7.91% + 1.37 CAD for every 100 CAD

Papaya Offers Complete Payroll, PEO and Contractor Management Services For Canada – Ontario

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Overview

Capital
Toronto (State Capital)
Currency
Canadian Dollar (CAD)
Date Format
yyyy/mm/dd
Fiscal Year
1 April - 31 March
Public holidays calendar

COVID-19

The government announced that those returning from non-essential travel (i.e holiday travel) to Canada will no longer be eligible for the 500 CAD a week sickness benefit under the Canada Recovery Sickness Benefit (CRSB) intended to assist in covering for the need to quarantine upon arrival to Canada.

Contributions

Employer

Employer Payroll Contributions

5.70%

Canada Pension Plan (CPP)

2.21%

Employment Insurance (EI) premiums

1.37 CAD for every 100 CAD

Workers Compensation contribution (WSIB insurance, assigns a schedule rate based on the products produced, the services provided, and the processes, technology, or materials used. The premium for Schedule 1 is an average rate of 1.37 CAD for every 100 CAD of insurable payroll in 2022)

7.91% + 1.37 CAD for every 100 CAD Total Employment Cost

Employee

Employee Payroll Contributions

5.70%

Canada Pension Plan (CPP) Maximum pensionable earnings 64,900 CAD Annual basic exemption 3,500.00 CAD Maximum contributory earnings 58,100.00 CAD Maximum employer & employee contribution 3,499.85 CAD

1.58%

Employment Insurance (Maximum annual insurable earnings of 60,300.00 CAD, maximum annual employee premium 952.74 CAD

Ontario Health Premium
0.98%

Up to 200,000 CAD

1.101%

200,000 CAD to 230,000 CAD

1.223%

230,000 CAD to 260,000 CAD

1.344%

260,000 CAD to 290,000 CAD

1.465%

290,000 CAD to 320,000 CAD

1.586%

320,000 CAD to 350,000 CAD

1.708%

350,000 CAD to 380,000 CAD

1.829%

380,000 CAD to 400,000 CAD

1.95%

More than 400,000 CAD

7.28% + Health Premium Total Employee Cost

Employee Income Tax

Federal:
15.00%

up to 50,197.00 CAD

20.50%

50,197.01 CAD to 100,392.00 CAD

26.00%

100,392.01 CAD to 155,625.00 CAD

29.00%

155,625.01 CAD to 221,708.00 CAD

33.00%

221,708.00 CAD and over

Ontario:
5.05%

Up to 46,226 CAD

9.15%

46,226.01 CAD – 92,454.00 CAD

11.16%

92,454.01 CAD – 150,000.00 CAD

12.16%

150,000.00 CAD – 220,000.00 CAD

13.16%

220,000.00 CAD and over

Employee Income Tax

Ontario Basic Personal Amount
5.05%

2022 Tax Rate

11,141 CAD

2022 Personal Amount

Federal Basic Personal Amount
15%

2022 Tax Rate

14,398 CAD

2022 Personal Amount  See the federal tax rates page for information on the enhanced federal personal amount, which increases the marginal tax rates for taxable incomes in the second highest federal tax bracket

Minimum Wage

General

The minimum wage in Ontario is $15.00 CAD per hour. (Potential increase due October 2022) 

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. CAD

Payroll

Payroll Cycle

In Ontario, pay cycles occur monthly, semi-monthly, bi-weekly, and hourly. For monthly paid employees, they must receive their pay within ten consecutive days from the end of the pay period.

13th Salary

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

Working Hours

General

Per the Employment Standards Labor Code, the maximum working hours shall not exceed 8 hours a day, 40 hours a week, with a maximum (inclusive of overtime) of 48 hours per week.

Overtime

An employer must pay an employee overtime pay for overtime hours at an overtime rate that is at least 150% of the employee’s regular rate of pay or one hour of time off in lieu.

Working Week

Monday-Friday

Leave

Paid Time Off

In Ontario, employees are entitled to two consecutive weeks of annual leave after the first year of employment and three consecutive weeks of leave after five years of employment.

Employees are entitled to vacation pay of 4.00% of the regular salary rate of pay for the first five years of employment and 6.00% of the regular salary rate of pay after five years of employment.

Public Holidays

There are 9 public holidays in Ontario. Employees that work on a statutory/public holiday are paid 150% of the regular hourly salary rate of pay plus public holiday pay, or regular rate of salary for all the hours worked plus a substitute day off with public holiday pay. 

Sick Days

Eligible employees who have worked for the same employee for at least three consecutive months are entitled to up to 3 days of unpaid leave per year due to a personal illness, injury, or medical emergency.

Maternity Leave

Employees are entitled to up to 17 weeks of unpaid 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.

Paternity Leave

Paternal leave falls under parental leave.

Parental Leave

Parents are entitled to up to 63 weeks of unpaid 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.

Other Leave

In Ontario, employees are entitled to:

  • 2 days of mandatory leave for the bereavement of a family member
  • Approximately 8 weeks of leave for compassionate care leave
  • Up to 3 days of unpaid leave for family responsibility leave
  • Up to 28 weeks per year of unpaid leave for Family Medical leave.
  • 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 the child has disappeared.
  • 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 Canadian forces operation outside Canada
      • Deployment to Canadian forces operation inside Canada that is assisting with an emergency or the aftermath of an emergency
      • Annual training, including 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

Termination

Termination Process

The termination process is standard in Ontario, Canada. It is based on termination reasons within the General Labor Law, unless an employer can provide sufficient cause for dismissal without notice (i.e. due to misconduct).

Notice Period

In general, notice periods in Ontario are stipulated within the employment contract or collective agreement and is linked to the reason for termination and the employee’s length of service:

  • Up to 2 years of employment: 1 weeks’ notice
  • 2-4 years of employment: 2 weeks’ 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

Severance Pay

To be eligible for severance pay, an employee must have completed at least five years of employment, or the company has a payroll of over 2.5 million CAD per year or have terminated over 50 employees in the past six months due to all or part of the company closing to receive severance payments.  The severance pay calculation is based on one week’s regular salary rate per year of employment.

Probation Period

Probation period in Ontario for a permanent employee is generally a minimum of 3 months.

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 Ontario) in place in Ontario.

VAT

General

Canadian Federal GST is charged at 5%. Ontario PST is 8%, resulting in a combined GST and PST rate of 13.00%. 

Version History

May 23, 2022
Payroll contributions and personal income tax rates have been updated.
January 30, 2022
Minimum wage increased to $15.00 CAD per hour.
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%.
October 1, 2020
The general minimum wage raised by 25 cents, bringing the new rate to $14.25 an hour.
Stay up to date on payroll & employment law changes

Questions & Answers

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Walter C.
Walter C.
1 year ago

Are employees who work on Sundays or in a late shift entitled to higher pay for those hours?

Admin
1 year ago
Reply to  Walter C.

Hi Walter, thanks for your question.

There is no law that requires you to pay more to employees who work on Sundays or late at night.

erez
erez
10 months ago

how much insurance normally does the employer pay annually to its employee?

Emily Kuhnert
Admin
10 months ago
Reply to  erez

Hi Erez, thank you for your question. Are you referring to private health insurance or something else?

Erez
Erez
10 months ago
Reply to  Emily Kuhnert

Yes private one. Like for instance what employer pays in the US but this time in canada

Emily Kuhnert
Admin
10 months ago
Reply to  Erez

This really varies based on multiple factors, including what kind of private insurance this covers (i.e. dental, dependents, etc.), job title, and more.

Dave Patriarche
8 months ago
Reply to  erez

generally about $3,500 to $5,500 for a typical life, LTD, health and dental plan.

Catherine
Catherine
6 months ago

My employees (Ontario business) were paid stat hours for Christmas, Boxing Day and New Years Day even though we closed for the first week of January (when we would normally have been open) giving everyone time off and I understand that we could have skipped paying the stats since we gave a day off in lieu of said stat holiday so now my question is regarding Family Day. Because we paid for three stats when we didn’t need to, am I required to pay FD stat or can I explain that the stats paid over Christmas were a bonus basically? And an error on my part? (Also, FD falls on a Monday and we are always closed on Mondays). If anyone can assist me with this thank you in advance.

Amelia
Amelia
3 months ago

Is there a requirement to verify right to work in Canada (similar to an I-9 in the US?) If so, what are the documentation requirements?

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