Work conditions in Canada

The Active Population in Figures

Working Conditions

Legal Weekly Duration

Normal hours of work are eight hours per day and 40 hours per week. The maximum weekly working time is 48 hours.

Retirement Age

The Canadian government removed the age of mandatory retirement in December 2011. All Canadian provinces, with the exception of a few thousand public employees in New Brunswick, have abolished the mandatory departure to retirement. Officials and employees of enterprises under federal jurisdiction can now retire at age 70, or even later if they wish. Workers who stop at age 70 (instead of 65) receive 42% more from the Canadian Pension Plan, the public pension.

Working Contracts

Federal provisions govern contracts of employment in Canada. The Government of Canada has established minimum standards for employment in Part III of the Canada Labour Code, including the minimum wage, annual leave, public holidays, bereavement leave, etc. Collective agreements and individual negotiations supplement these provisions. In addition, each province has its own labour law.

Labour Laws

Consult Doing Business Website, to obtain a summary of the labour regulations that apply to local entreprises.

Cost of Labour

Minimum Wage

Minimum wages vary by province. As of January 1, 2019, they averaged $12.23 per hour, with a low of $11.00 per hour in Saskatchewan and a high of $14.00 per hour in Ontario (source: Canadian government).

Average Wage

As of January 2020, the average Canadian salary in 2020 was $1,050.59 per week for employees across the country – which means that the annual average salary for full-time employees is just over $54,630 per year (source: Statistics Canada).

Social Contributions

Social Security Contributions Paid By Employers: In 2020, employer contribution to Employment Insurance (EI) is 2.21%, with a maximum contribution of CAD 1,199; Canada Pension Plan (CPP) is 5.25%, with a maximum contribution of CAD 2,898. The maximum employer contributions to the Québec Pension Plan (QPP) for 2020 are CAD 3,146, whereas for the EI the maximum contributions of CAD 911. However, they must also contribute to the Québec Parental Insurance Premium plan.
Social Security Contributions Paid By Employees: In 2020, employee contribution to Employment Insurance (EI) is 1.58 %, with an annual maximum contribution of CAD 856; Canada Pension Plan (CPP) is 5.25%, with a maximum contribution of CAD 2,898. The maximum employee contributions to the Québec Pension Plan (QPP) for 2020 are CAD 3,146, whereas for EI the maximum contributions is CAD 650. The Quebec Parental Insurance Plan provides maternity and parental benefits in Quebec.

Social Partners

Social Dialogue and Involvement of Social Partners

Labour organisations and trade unions are very strong and well structured in Canada. Quebec is the most unionised province. Canada’s labour unions have frequently clashed with the government and corporations over the past few years. Canada has often resorted to passing “back-to-work” legislation to end labour disputes. Canada justifies introducing the legislation by claiming it is a necessary action to protect the Canadian economy.

Labour Unions

FTQ - Quebec workers federation (in French)
CSN - Canada national federation of labor organizations and trade unions (in French)
CLC-CTC - Canadian Labor Congress
NUPGE - National Union of Public and General Employees
The Union Canada (Unifor)
CUPE - Canadian Union of Public Employees

Unionisation Rate

22.9 % of part-time workers, 31.2% of full-time workers, 30.2 % of permanent workers, 25.8 % of non-permanent workers. These rates have dropped in companies of less than 20 employees and in those of 100 to 500 employees. On the other hand, they have risen in establishments of more than 500 employees and those of 20 to 99 employees.

Labour Regulation Bodies

Employment and Social Development Canada