Lerio — Contractor Ops Agent

Partner with Lerio to keep employment in Canada legally sound — contracts, payroll and statutory benefits handled against the live rule set.

CurrencyPayroll

All compensation is paid in CAD (CA$). Cross-border funding is converted at the daily rate on the pay date.

Working hoursSchedule

The standard week is 40 hours / week. Hours beyond the statutory limit are treated as overtime and typically paid at a premium.

Paid leaveTime off

Statutory time off is 6 holidays / year, in addition to nationally observed public holidays.

Payment frequencyCadence

The most common payment frequency is monthly. By law different territories can impose different pay frequencies requirements. Therefore it can vary from weekly, bimonthly or monthly.

Minimum wageFloor

The statutory minimum is CA$15. Lerio blocks any contract drafted below the floor.

Tax yearCalendar

The Canada tax year runs Jan – Dec. Year-end filings are prepared automatically.

Every figure below is modelled, not memorised — and traceable to its source via the calculator on the right.

Employee taxes

withheld from gross

Income Tax Rates

withheld from gross

Federal Income Tax

Taxable Annual Income (CAD)

Tax Rate (%)

$0 - $57,375

14.5

$57,376 - $114,832

20.5

$114,833 - $187,225

$187,226 - $240,759

Above $240,759

Employer taxes

on top of gross

Employer Tax

on top of gross

Social Security Contributions

CPP

up to CAD 4,430.10

up to CAD 1,077.48

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Rates are indicative and depend on individual circumstances. Run a salary through the calculator for a full breakdown, or ask the compliance agent for a citable figure.

Hiring in Canada is modelled by Lerio; reach out to compliance for the current Employer-of-Record path.

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Canada is one of the most attractive destinations for global expansion, offering a highly educated workforce, stable economy, and strong presence in industries like technology, finance, healthcare, and natural resources. However, hiring employees in Canada requires strict compliance with federal and provincial labor laws, payroll systems, and tax regulations, which can be complex for foreign companies.An Employer of Record (EOR) in Canada enables companies to hire employees quickly and compliantly without setting up a local entity. The EOR becomes the legal employer of record, managing payroll, taxes, statutory benefits, and HR compliance, while the client company directs the employee’s day-to-day work.<h3 class="bn-inline-content">Key Benefits of Using an EOR in Canada</h3><ul><li>Fast Market Entry – Hire Canadian employees in weeks instead of months.</li><li>Legal Compliance – Stay aligned with federal and provincial labor codes, tax rules, and employment standards.</li><li>Cost Efficiency – Avoid the high costs of setting up and running a Canadian subsidiary.</li><li>Access to Talent – Tap into Canada’s diverse and skilled workforce.</li><li>Scalability – Test the market or grow teams quickly without long-term commitments.</li></ul><h3 class="bn-inline-content">Employment in Canada Through EOR</h3>An Employer of Record in Canada typically manages:<ul><li>Drafting and managing employment contracts compliant with federal and provincial law.</li><li>Payroll processing, including tax withholding and remittances to the Canada Revenue Agency (CRA).</li><li>Social contributions such as CPP (Canada Pension Plan) and EI (Employment Insurance).</li><li>Administration of mandatory and supplementary benefits (health insurance, retirement plans, vacation leave, etc.).</li><li>Guidance on employee terminations, which are regulated and vary by province.</li><li>Ongoing HR and compliance support for employers and employees.</li></ul><h3 class="bn-inline-content">Compliance and Labor Laws in Canada</h3><ul><li>Working Hours: Standard is 40 hours per week (varies by province). Overtime is typically paid at 1.5x the regular rate.</li><li>Minimum Wage: Varies by province (2025 ranges from CAD $15.00–$17.50/hour).</li><li>Paid Leave: Minimum 2 weeks’ vacation after 1 year of service; 3 weeks after 5 years. Public holidays vary by province.</li><li>Sick Leave: Federal and provincial regulations mandate paid or unpaid sick leave (e.g., federally regulated workers get 10 paid sick days per year).</li><li>Probation Period: Commonly 3–6 months, depending on the contract and province.</li><li>Termination Rules: Notice period and severance depend on province, length of service, and contract type.</li><li>Employer Contributions: Employers contribute to CPP/QPP, EI, and in some provinces, healthcare or workers’ compensation programs.</li></ul><h3 class="bn-inline-content">Why Choose an EOR in Canada?</h3><ul><li>Simplify Compliance – Canadian employment laws vary significantly by province. An EOR ensures full compliance everywhere you hire.</li><li>Save Time & Money – No need to establish a subsidiary or handle complex local payroll.</li><li>Flexibility – Perfect for pilot projects, contract workers, or quick expansions.</li><li>Focus on Growth – Let the EOR manage HR, payroll, and compliance while you focus on business strategy.</li><li>Local Expertise – Benefit from on-the-ground HR and legal knowledge across Canada.</li></ul>An Employer of Record in Canada is the most efficient way for global companies to expand into the Canadian market. It allows businesses to hire talent quickly, stay compliant with local regulations, and operate with flexibility and confidence.

What Lerio handles

✓

Compliant local contract

Drafted to Canada labour law, in English and English, with the statutory clauses pre-filled.

✓

Onboarding & payroll setup

Tax registration, social-security enrolment and the first pay cycle, configured in CAD.

✓

Ongoing compliance

Document expiries, minimum-wage changes and America regulatory updates watched continuously.

✓

Statutory benefits

Leave, public holidays and mandatory contributions administered automatically.

Typical timeline

via EOR

Day 0

Offer accepted. Candidate details enter Lerio; the contract drafts itself from the Canada template.

Day 1–3

Contract signed. Local registrations and benefit enrolment begin in parallel.

Day 3–7

Ready to work. Equipment, access and the first payroll run are scheduled.

Monthly

Steady state. Payroll, filings and compliance run on autopilot with a human approval gate.

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Not yet live for EOR. Lerio models Canada, but direct hiring may need setup — the compliance agent can confirm the path.

Statutory benefits in Canada, plus the supplemental coverage teams usually add.

Mandatory

✓

Pension

✓

Unemployment insurance

✓

Time off

Commonly added

optional

✓

Supplemental coverage

<h3 class="bn-inline-content">Statutory / Mandatory Benefits in Canada</h3>Employment standards vary by province/territory, but the following are common nationwide entitlements:<ul><li>Paid Annual Leave (Vacation) –<ul><li>Minimum 2 weeks per year after 1 year of service.</li><li>3 weeks after 5 years of service (in most provinces).</li><li>4 weeks after 10 years (in some provinces, e.g., Saskatchewan).</li></ul></li><li>Public Holidays – 9–12 per year, depending on the province.</li><li>Paid Sick Leave –<ul><li>Federal minimum: 5 paid days per year (as of Dec 2022).</li><li>Provinces vary (e.g., British Columbia: 5 paid days; Ontario: 3 paid days).</li></ul></li><li>Maternity Leave – Up to 15 weeks of job-protected leave (unpaid, but employees may receive EI benefits equal to 55% of average earnings up to a cap).</li><li>Parental Leave –<ul><li>Standard: Up to 40 weeks shared (35 weeks paid via EI, max 55% of salary).</li><li>Extended: Up to 69 weeks shared (61 weeks paid via EI, at 33% of salary).</li></ul></li><li>Paternity Leave – Included in shared parental leave (no separate entitlement).</li><li>Employment Insurance (EI) – Covers maternity/parental leave, sickness, and caregiver benefits (funded by employer/employee contributions).</li><li>Canada Pension Plan (CPP) / Quebec Pension Plan (QPP) – Mandatory employer contributions (2025 rate: 5.95% of pensionable earnings, matched by employee).</li><li>Workers’ Compensation – Mandatory coverage for workplace injuries.</li><li>Public Healthcare – Funded through general taxation; no direct employer obligation to provide health insurance.</li><li>Termination Notice / Severance –<ul><li>Minimum 1–8 weeks’ notice (depending on service and province).</li><li>Federal law: Severance of 2 days’ pay per year of service, minimum 5 days, if employed 12+ months.</li></ul></li></ul><h3 class="bn-inline-content">Common Employer-Provided Benefits in Canada</h3>Since public health is covered, employer perks focus on supplementary benefits:<ul><li>Extended Health Insurance – Covers dental, vision, prescription drugs, physiotherapy, and paramedical services not included in public healthcare.</li><li>Group Life & Disability Insurance – Short-term and long-term disability benefits, accidental death insurance.</li><li>Retirement Savings Plans – Employer contributions to RRSPs (Registered Retirement Savings Plans) or pension plans.</li><li>Bonuses & Profit-Sharing – Annual performance bonuses, commissions, stock grants.</li><li>Flexible / Hybrid Work – Remote work options, flexible schedules.</li><li>Wellness Programs – Gym memberships, wellness stipends, Employee Assistance Programs (EAPs).</li><li>Paid Sick Leave Beyond Minimum – Many employers extend coverage beyond statutory 3–5 days.</li><li>Professional Development – Tuition reimbursement, training budgets, certifications.</li><li>Commuter Benefits – Transit passes, parking subsidies, or company shuttles.</li><li>Meal Subsidies – Meal vouchers, canteen discounts, or lunch stipends.</li><li>Extra Paid Leave – For volunteering, birthdays, cultural/religious observances.</li><li>Stock Options / Equity Plans – Especially in tech, startups, and larger corporations.</li><li>Relocation Assistance – For moves between provinces or from abroad.</li><li>Childcare Benefits – Subsidies, emergency childcare support, or partnerships with childcare centers.</li></ul>

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Lerio benchmarks each package against live America data — open the comp agent to see where an offer lands.