payment of wages

When and how is my salary paid in Canada?

• Salaries are generally paid monthly or fortnightly, depending on company policy and the employment contract.
• Most companies make direct bank transfers to your account at the end of each pay period, often around the 25th of the month or at the end of the agreed period (e.g. bi-weekly).
• Gross salary is the total amount you are expected to receive before any deductions (gross monthly or annual salaries).
• Net salary, on the other hand, is the amount remaining after compulsory deductions such as social insurance contributions (see our Insurance in Canada section ) and taxes (see our Taxes in Canada section ).

• Mandatory deductions include Canada Pension Plan (CPP) and Employment Insurance (EI) contributions, as well as contributions to provincial health insurance plans (such as Medicare in each province). If you are a foreign employee, withholding taxes may apply, especially for non-resident workers or those without permanent resident status.
• Income tax may also be deducted from your salary, at various levels (federal, provincial, municipal), and is calculated on the basis of your gross annual income. For foreign employees or temporary workers, withholding taxes may be deducted directly from your salary each month, depending on your tax status and residency.

What does a salary declaration look like?

At the end of each pay period, you will receive a salary declaration from your employer. The information contained in the salary declaration is generally as follows:

Wording	What is it	In % of salary	CAD amount
Gross salary	The amount of your salary, without social deductions	100%	5000 CAD
Canada Pension Plan (CPP)	CPP contribution for retirement and disability	5.45%	272.50 CAD
Employment Insurance (EI)	Employment Insurance premium (for job loss)	1.58%	79 CAD
Federal income tax	Federal income tax	Varies according to income	CAD 500
Net salary	Salary after deductions (what you actually receive)	85.5%	4148 CAD

Practical information

• The working week in Canada is generally 40 hours a week, spread over 5 days.
• Vacations are governed by provincial and territorial legislation, but the minimum standard is 2 weeks paid vacation per year.
• Some companies offer additional vacations, particularly for long-term employees or those working in a specific sector.