In Canada, employers are responsible for additional costs beyond employee wages. These costs include statutory expenses mandated by the government and optional benefits that employers may choose to provide. Here’s a breakdown:
Statutory Costs
Canada Pension Plan (CPP/QPP)
CPP applies to all provinces except Quebec, which has the QPP.
Employer and employee contributions are equal: For 2024, the rate is 5.95% of the employee’s income.
The annual maximum contribution for employees is $3,867.50, and employers must match this amount.
Employment Insurance (EI)
Employers pay 1.4 times the amount contributed by employees.
2024 Contribution Rates: Employees contribute at 1.66%, and employers at 2.32%.
The annual maximum contribution is $1,049.12 for employees and $1,468.77 for employers.
Optional Costs
Group Health Insurance
Employers may offer additional benefits such as medical, dental, and vision insurance.
Costs vary based on coverage and providers, typically ranging from $100 to $500 per employee per month.
Retirement Savings Plans
Includes group RRSPs, where employers may match employee contributions, usually as a percentage of their income.
Paid Vacation
The statutory minimum is 2 weeks of paid vacation.
Exceptions: In Saskatchewan, Quebec, and Yukon, employees are entitled to 3 weeks of paid vacation after completing 1 year of employment.
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