Employer of Record in Canada: what one employee really costs
Canada, North America. One software engineer at $70,000 gross per year, priced through 9 providers on 2026-09-02 exchange rates. Change the salary and headcount below.
- Employer on-cost
- +8.1%
- statutory charges on top of gross
- All-in per month
- $6,504 – $7,004
- salary + charges + published fee, cheapest to dearest listed provider
Hiring one software engineer in Canada at $70,000 gross a year costs about $472 a month in statutory employer charges (+8.1%), plus an EOR fee of $199 to $699 per month depending on the provider: $6,504 to $7,004 all-in, before deposits, FX margins and add-ons. Prices checked 2 Sept 2026.
Disclosure Some provider links on this page are affiliate links: if you become a customer after clicking, the provider may pay us a referral fee. It never changes the price you pay, and it never changes the numbers on this page, which come from official sources and are dated. How we are paid
Cost engine · preset to Canada
Price your own hire, line by line.
≈ CAD 97,473 gross / year · CAD at ECB reference rate, 2 Sept 2026
| Per employee | Rate | Per month |
|---|---|---|
| Gross salary | $5,833 | |
| Canada Pension Plan (CPP) capped | 5.95% | $253 |
| Employment Insurance (EI) capped | 2.28% | $94 |
| Ontario Employer Health Tax (EHT) | 1.95% | $114 |
| WSIB Workplace Safety Insurance (Ontario Class L) | 0.18% | $11 |
| Employer on-cost | +8.1% | $472 |
| Cost of employment, before EOR fee | $6,305 |
$6,904/ month · 1 employee
- Fee / mo
- from $599
- Per year
- $82,846
- Fee share
- 8.7%
Checked 2 Sept 2026
Get a Deel quote$7,004/ month · 1 employee
- Fee / mo
- $699
- Per year
- $84,046
- Fee share
- 10.0%
Checked 2 Sept 2026
Get a Remote quote$6,804/ month · 1 employee
- Fee / mo
- from $499
- Per year
- $81,646
- Fee share
- 7.3%
Checked 2 Sept 2026
Get a Multiplier quoteEmployer charges from official sources; provider fees are list prices on the dates shown; deposits, FX margins and add-ons are not included. Not legal or tax advice. Methodology
9 providers, one scenario, all-in totals.
| Provider | EOR fee / employee / mo | All-in / mo, 1 hire | Deposit | Countries | Checked | Quote |
|---|---|---|---|---|---|---|
| RemoFirst EOR in 185+ countries from $199 per employee per month, no annual contract. | from $199 | $6,504 | Not stated on the pricing page | 185+ | 2 Sept 2026 | Get a quote from RemoFirst· $6,504/mo |
| Rivermate EOR in 180+ countries from $319 to $639 per employee per month. | from $319 | $6,624 | Not stated on the pricing page | 180+ | 2 Sept 2026 | Get a quote from Rivermate· $6,624/mo |
| Playroll EOR in 180+ countries from $399 per employee per month; deposit of one month's salary. | from $399 | $6,704 | Fully refundable security deposit equivalent to one month's salary when onboarding an employee (pricing page). | 180+ | 2 Sept 2026 | Get a quote from Playroll· $6,704/mo |
| Multiplier EOR from $459 (annual) or $499 (monthly) per employee, plus mandated add-ons. | from $499$459 billed annually | $6,804 | Not stated on the pricing page | 150+ | 2 Sept 2026 | Get a quote from Multiplier· $6,804/mo |
| Papaya Global EOR starting from $499 per employee per month, quote-based, 160+ countries. | from $499 | $6,804 | Not stated for EOR on the pricing page (the contractor block states 'No deposit required'). | 160+ | 2 Sept 2026 | Get a quote from Papaya Global· $6,804/mo |
| Deel EOR in 130+ countries, starting at $599 per employee per month. | from $599 | $6,904 | Not stated on the pricing page | 130+ | 2 Sept 2026 | Get a quote from Deel· $6,904/mo |
| Oyster EOR in 120+ countries at USD 699 per employee per month; refundable deposit. | $699 | $7,004 | Refundable deposit required for EOR team members 'to initiate the engagement and to ensure on-time payments' (pricing FAQ). | 120+ | 2 Sept 2026 | Get a quote from Oyster· $7,004/mo |
| Remote EOR in 90+ countries at $699 per employee per month, no deposit. | $699 | $7,004 | No deposit: 'We collect reserve payments in rare, high risk circumstances' (pricing FAQ). | 90+ | 2 Sept 2026 | Get a quote from Remote· $7,004/mo |
| Rippling EOR bundled with the Rippling platform; custom quote only. | Quote only | — | Not stated on the pricing page | — | 2 Sept 2026 | Get a quote from Rippling |
Same salary and statutory charges in every row; only the fee segment changes.
What Canada adds on top of the salary, and where each rate comes from.
Rates apply to the base named in each line; capped lines stop growing above the ceiling. Engine assumptions: Employee works in Ontario (Employer Health Tax and WSIB apply) = 1.
| Line | Employer rate | Base & ceiling | Source |
|---|---|---|---|
| Canada Pension Plan (CPP)All employees in Ontario earning above the basic exemption amount | 5.95% | Slice of gross salary between CAD 3,500 and CAD 74,600 / yr Employer rate is 5.95% on earnings between basic exemption ($3,500) and YMPE ($74,600) | CRA2026-09-02 |
| Employment Insurance (EI)All insurable employees in Canada | 2.28% | Gross salary , capped at CAD 68,900 / yr Employer rate is 1.4 times the employee rate of 1.63% (0.0163 x 1.4 = 0.02282) up to Maximum Insurable Earnings of $68,900. From 1 January 2027 the employer rate is $2.30 per $100 (1.4 x $1.64) and maximum insurable earnings rise to $70,800, confirmed by the Canada Employment Insurance Commission in September 2026; the engine keeps the 2026 figures until then. | CRA2026-09-02 |
| Ontario Employer Health Tax (EHT)Employers with Ontario payroll | 1.95% | Gross salary Top rate of 1.95% applies; the $1,000,000 exemption is restricted to eligible employers whose total group payroll is under $5,000,000, which an EOR payroll exceeds | Ontario Ministry of Finance2026-09-02 |
| WSIB Workplace Safety Insurance (Ontario Class L)Ontario employers in Class L (Professional, Scientific and Technical services / IT) | 0.18% | Gross salary , capped at CAD 121,700 / yr Rate is $0.18 per $100 insurable earnings (0.18%) up to maximum insurable earnings ceiling of $121,700 | WSIB2026-09-02 |
| Vacation pay (Ontario ESA minimum) not in total | — | Ontario ESA requires minimum 4% vacation pay (2 weeks). For salaried employees, vacation is taken as paid time off inside annual salary | Ontario Ministry of Labour2026-09-02 |
| Employer on-cost at $70,000 | +8.1% | $5,658 a year, $472 a month |
EOR or your own entity
Fees scale with headcount. An entity does not.
Opening a local entity in Canada or Ontario is fast and relatively inexpensive, but requires setting up local payroll registrations with the CRA, WSIB, and Ontario Ministry of Finance. For a small team, an EOR is significantly faster and removes ongoing statutory employer compliance burdens.
Fees grow with every hire; the charges line is owed under an entity too.
| Headcount | RemoFirst fees / yr | Papaya Global fees / yr | Statutory charges / yr |
|---|---|---|---|
| 1 | $2,388 | $5,988 | $5,658 |
| 3 | $7,164 | $17,964 | $16,975 |
| 5 | $11,940 | $29,940 | $28,291 |
| 10 | $23,880 | $59,880 | $56,582 |
| 20 | $47,760 | $119,760 | $113,165 |
Statutory charges are owed either way; the provider fee is the only line an entity removes, against the cost of incorporating and running local payroll.
Employment terms that move the cost
- Paid leave
- 10 days
- Public holidays
- 9
- 13th month
- Not mandatory
- Probation
- up to 3 months
- Notice
- Statutory notice ranges from 1 week (after 3 months) up to 8 weeks (after 8 years); statutory severance pay applies after 5+ years of service if employer payroll is $2.5M or more.
- Reviewed
- 2026-09-02
Get a quote for Canada from the providers that publish a price.
Totals for 1 hire at $70,000. Ask each provider about deposits, FX margins and mandatory add-ons for Canada: those are the lines that move.
Disclosure Some provider links are affiliate links; they never change the numbers on this page. Details
Questions people ask before booking a demo
- How much do statutory employer contributions add to a salary in Ontario, Canada?
- Four lines: CPP at 5.95% on earnings between the $3,500 basic exemption and the $74,600 ceiling, EI at 2.282% (1.4 times the 1.63% employee rate) up to $68,900, Ontario EHT at 1.95% of all pay, and WSIB at $0.18 per $100 up to $121,700 for professional and technical work. On a CAD 70,000 salary they add about 10%; at this page's example of US$70,000 (about CAD 96,000) they add about 8%, because CPP and EI stop growing at their ceilings.
- Does an EOR qualify for the Ontario Employer Health Tax exemption?
- No. The $1,000,000 Ontario EHT exemption is restricted to eligible employers whose total Ontario payroll across associated entities is under $5,000,000. Because an EOR provider's total payroll across all client employees far exceeds this threshold, the top EHT rate of 1.95% applies from the first dollar of salary.
- Is vacation pay an additional cost on top of annual salary in Canada?
- No. Under the Ontario Employment Standards Act, employees are entitled to a minimum of 4% vacation pay (equivalent to 2 weeks). For full-time salaried employees, vacation is taken as paid time off included within their annual gross salary, so it does not represent an extra payroll cost.