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As of April 1, 2024, the minimum wage in Canada is set at CA$17.30 per hour (about USD $12.07). For an average 8-hour workday, this comes to a total of CA$138.40.
US business owners seeking talent in Canada must navigate regional, industry-specific, and citizenship-based employment requirements. If you’re new to cross-border hiring, these small but vital details can make once-simple office functions seem surprisingly complex.
Below, we outline some of these key distinctions and explain how partnering with an Employer of Record (EOR) platform like Skuad can streamline Canadian compliance and workforce management for your global expansion.
What Is the Minimum Wage?
Although Canada's federal minimum wage is CA$17.30 per hour, minimum wages may vary by province and territory, with some exceeding the federal rate - similar to the US. However, no region falls below the federal minimum.
In fact, every province and territory — except Alberta and Saskatchewan — sets minimum wages higher than the federal standard. These differences are driven primarily by cost-of-living fluctuations and provincial labor policies to ensure fair wages in their respective local economies.
Navigating such wage differences is crucial for conducting business successfully in Canada.
The Canada Labour Code establishes the federal minimum wage as well as employment standards for workers in federally regulated industries such as banking, telecommunications, and interprovincial transportation.
Conversely, individual provinces and territories set provincial minimum wages, with each determining wage policy based on regional economic conditions, cost of living, and labor market needs. Provincial employment standards legislation outlines these rates, which apply to nearly all workers across Canada.
The cure for your headaches: the help of an EOR platform like Skuad makes tracking, monitoring, and adjusting to shifting labor laws significantly more manageable. Let us do the heavy lifting so you can get back to work.
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Talk to an expertAnnual Changes
The minimum wage in Canada has experienced steady YoY increases over the past decade. In 2014, the federal minimum wage was CA$10.20 per hour and has risen consistently to CA$17.30 as of 2024.
These adjustments reflect efforts to keep pace with inflation, maintain labor market competitiveness, and enhance the overall quality of life across the country.
The federal minimum wage in Canada is scheduled for an increase to CA$17.70 per hour on April 1, 2025, reflecting a 2.31% YoY increase from 2024’s rate of CA$17.30. This adjustment aligns with the Consumer Price Index (CPI) to ensure wages are compatible with inflation, maintain workers' purchasing power, and support economic stability for federally regulated employees.
Minimum Wage in Canada, Compared
Rising minimum wages make Canada one of the more competitive global labor markets. It offers access to a skilled workforce, strong labor protections, and economic stability. While wages vary by province, Canada remains an attractive destination for companies seeking top talent with fair labor costs.
Minimum Wage In Canada (per day)
*amounts have been converted to USD as a means of standardization across different currencies
Minimum Wage In Canadian Provinces (per day)
How the Law Differs for Foreign Workers in Canada
Canadian labor laws apply equally to citizens and foreign workers. This means all employees – including those with work permits – are entitled to the same minimum wage, workplace protections, and employment standards as Canadian citizens.
Additional Considerations
In addition to the general minimum wage, certain provinces and territories in Canada establish special minimum wage rates for specific types of workers. These rates apply to roles with unique working conditions or employment structures.
Here’s an example for Ontario:
These special rates vary by province, and employers must ensure compliance with local labor laws when hiring employees in these categories. To help you calculate potential costs, consult our employee cost calculator.
Vacation Pay in Canada
Vacation pay in Canada is calculated as a percentage of an employee’s gross wages, with rates variable by province and length of employment. In Ontario, for example:
- First 5 years of employment: Employees receive 4% of gross wages as vacation pay.
- After 5 years of employment: Vacation pay increases to 6% of gross wages.
Employers are responsible for accurately calculating vacation pay and ensuring compliance with federal and provincial regulations.
Managing Compliance
The onus is on employers to accurately calculate these totals and maintain compliance with federal and provincial labor laws. Businesses that tackle such payroll tasks independently should have one or more experienced in-house accounting professionals on staff, depending on your business’s size.
A better option is to work with an EOR platform like Skuad. We handle the heavy lifting for you, ensuring payments are made on time and in accordance with local labor laws.
Skuad handles:
- Payroll processing and wage calculations
- Compliance with federal and provincial labor laws
- Timely payments and tax deductions
Average Income in Canada
As per the most recent data on, the average annual income in Canada is 63,013 Canadian dollars.
In USD, the Canada average income would be approximately $44,414.
However, the average monthly income in Canada differs based on the region, industry and roles. In November 2024, the monthly average income is at 3,681 USD.
Now, let’s look at how the region-wise average income varies.
Average Income in Canada - Province & Territory wise
Why Use an Employer of Record (EOR)?
Skuad has empowered thousands of businesses to expand seamlessly across borders without the complexities of establishing a local legal entity. Our platform manages every aspect of employment in Canada, ensuring compliance, efficiency, and hassle-free operations.
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Automate your recruiting, hiring, and onboarding processes while ensuring every new employee receives the correct, legally compliant wage—all via seamless automation.
Working with an EOR provides flexible payment options. Employees can receive wages through their preferred method while we ensure you maintain compliance with local regulations.
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Skuad’s comprehensive EOR solution enables seamless management of country-specific benefits packages, timesheets, and expenses, ensuring compliance and efficiency across global operations.
Want To Hire in Canada? Work With Skuad
We know that growing your business internationally can be challenging. That’s why we’ve made Skuad as user-friendly as possible. Use the link below to speak with our experts about what we can do for you or request a demo.
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