Guide

What this calculator leaves out of the cost of a hire

Updated

The figure above is the federal statutory contribution and it is not the cost of employing somebody. Being clear about the gap is the difference between a budget that holds and one that does not.

Talk to a specialist One salary in, and you have the employer's CPP, CPP2 and EI for 2026, with every rate traceable to CRA.

Vacation and statutory holiday pay

Employment standards in every province require vacation pay, and for many employees it is expressed as a percentage of wages rather than as time already inside the salary.

Where that is how it works, it is a real addition to the cost and it is set by provincial employment standards rather than federally, so it has to be checked for the province of employment.

Workers compensation

Premiums are set by the provincial board, by industry classification and by the employer's own claims experience. In a low-risk office classification they are modest; in construction or transport they are not.

Nothing about them is federal or predictable from a salary, which is why no figure for them appears anywhere on this site.

Provincial health and payroll levies

Several provinces levy an employer payroll tax, usually with a threshold below which small employers pay nothing and a rate that applies above it.

Whether one applies to you depends on the province and on your total payroll rather than on any individual salary, so it is a question to answer once for the business rather than per hire.

Benefits, pension and everything discretionary

Health and dental coverage, a group retirement plan, life and disability insurance, and any employer pension match. All optional in law, all real in a budget, and all set by you rather than by a rate table.

Add them to the figure above rather than assuming any of them is inside it.

The honest way to use the number

Treat the calculator's output as the federal statutory floor: the amount you cannot avoid and can compute exactly.

Then add the provincial and discretionary layers on top, from your own province's rules and your own benefits decisions. That order produces a defensible budget; starting from a rule of thumb percentage does not.

Want payroll set up rather than estimated?

Tell us the province and roughly how many people. Payroll bureaux and providers who handle Canadian employer remittances will contact you directly.

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Sources

  1. CRA, CPP contribution rates, maximums and exemptions
  2. CRA, second additional CPP contribution rates and maximums
  3. CRA, EI premium rates and maximums
  4. Canada Pension Plan, consolidated (laws-lois.justice.gc.ca)
  5. Employment Insurance Act, consolidated (laws-lois.justice.gc.ca)

See the cost on top of the salary

One salary in, and you have the employer's CPP, CPP2 and EI for 2026, with every rate traceable to CRA.

Talk to a specialist