This estimate is for informational purposes only. This tool provides a general idea and does not replace the advice of an accountant. For a solution tailored to your specific situation, Bankeo will find you the ideal accountant free of charge and without obligation.
Find your accountantIndicate the employee's gross annual or hourly salary and the sector of your company.
The tool automatically adds mandatory employer contributions according to department and sector, with the 2026 rates.
Employer cost, employee deductions, net salary and contribution rate as a percentage of salary.
Hiring an employee always costs more than the stated gross salary: the employer also pays mandatory employer contributions. Canada The calculation includes the pension plan (QPP in Quebec, CPP/RPC elsewhere, at 5.95%, 6.30% in Quebec, plus component 2), the employer's share of Employment Insurance (EI), and, in Quebec only, the Quebec Parental Insurance Plan (QPIP). In addition, there is an employer health tax in some provinces (the FSS in Quebec, the EHT in Ontario and British Columbia, exempt below a payroll threshold) and workers' compensation (CNESST in Quebec, WSIB in Ontario, WCB or WorkSafe elsewhere), at an average rate that varies depending on the sector. Income tax withheld at source is not included. A thorough understanding of these costs is essential for budgeting a new hire and setting compensation. The calculator applies the 2026 tax rates of the selected province.
It depends on the province. Everywhere in Canada The employer contributes to the pension plan (QPP in Quebec, CPP/RPC elsewhere, at 5.95%, 6.30% in Quebec, plus component 2) and to Employment Insurance (EI). Depending on the province, an employer health tax (HST in Quebec at 1.65% for SMEs, EHT in Ontario and British Columbia, exempt below a payroll threshold) and workers' compensation (CNESST in Quebec, WSIB in Ontario, WCB or WorkSafe elsewhere) may also be levied. In Quebec only, the Quebec Parental Insurance Plan (QPIP) is also included. The calculator applies the correct 2026 rates according to the selected province.
Some charges depend on the company's profile and the province. Workers' compensation coverage (CNESST, WSIB, WCB, or WorkSafe) and certain contributions vary depending on the industry and payroll. A high-risk business (for example, construction) generally pays higher charges than a service company. The employer health tax also differs from state to state. The calculator takes into account the industry and state you select.
| Membership fee | Who pays / scope | Ceiling |
|---|---|---|
| Public pension plan (QPP in Quebec, CPP/PPP elsewhere), 5.95% (6.30% in Quebec) plus component 2 | Employer's share | 2026 ceiling (MGAP/YMPE): €74,600 |
| Employer health tax (FSS in Quebec, EHT in Ontario and British Columbia; none elsewhere) | Employer's share | According to the province |
| Employment Insurance (EI), employer contribution, and Quebec Parental Insurance Plan (QPIP) in Quebec only | Employer's share | Ceiling 2026 (AE MRA): 68,900? |
| Parental insurance (e.g., RQAP in Quebec) | According to the province | According to the province |
| Health insurance contributions / payroll (e.g., FSS in Quebec) | Depending on the payroll and the sector | Varies depending on the department and sector |
| Workplace accidents (CNESST in Quebec, WSIB in Ontario, WCB or WorkSafe elsewhere) | Depending on the sector of activity | Varies depending on the department |
| Other employer contributions by province | Employer's share | According to the province |
| Typical total employer contributions | Varies depending on the department and sector | Calculated in the tool |
The exact 2026 rates and ceilings are applied directly in the calculator according to the province and sector chosen (QPP or CPP, unemployment insurance, QPP, employer health tax FSS or EHT and workers' compensation).
Beyond gross salary, the employer pays employer contributions, the amount of which varies by province. Depending on the province, these contributions can represent a larger or smaller portion of the salary, particularly due to the employer health tax (FSS in Quebec, EHT in Ontario and British Columbia). Additional benefits and indirect costs are also included. The calculator estimates the total cost based on the 2026 rates of the selected province.
Everywhere at Canada Pension plans (QPP in Quebec, CPP/PPP elsewhere, at 5.95%, 6.30% in Quebec, plus component 2) and Employment Insurance (EI). In Quebec, the Quebec Parental Insurance Plan (QPIP), the Social Security Fund (FSS), and the Commission des normes, de l'équité, de la santé et de la sécurité du travail (CNESST) are also included. In Ontario and British Columbia, an employer health tax (EHT) applies above a payroll threshold, plus workers' compensation (WSIB, WCB, or WorkSafe). The calculator applies the correct rates based on the selected region.
The employer contributes to the public pension plan: CNSS in Quebec, RPC/CPP in the rest of the Canada , at 5.95% (6.30% in Quebec) plus component 2. The 2026 earnings cap (MGAP/YMPE) is $74,600. The calculator applies the 2026 rate corresponding to the selected region.
This coverage, paid for by the employer, varies depending on the industry and the company's history. In Quebec, it's the CNESST; in Ontario, the WSIB; elsewhere, WCB or WorkSafe. The rate is a variable average: a high-risk job (construction) costs significantly more than an office job. The calculator takes into account the industry and the province.
Some provinces levy an employer health tax calculated on total payroll. In Quebec, this is the Health Services Fund (FSS), at 1.65% for SMEs. In Ontario and British Columbia, it's the Employer Health Tax (EHT), which is exempt below a payroll threshold. Elsewhere, there is no such tax. The calculator applies the 2026 rate of the selected province.
Employee contributions (withheld at source) are deducted from the employee's gross salary: taxes and the employee's share of contributions (QPP, EI, QPIP in France). Employer contributions are paid in addition by the employer. The exact breakdown between the employee's and employer's shares depends on the contribution rate and the province.
It depends on the province. In Quebec, the QPIP (Quebec Parental Insurance Plan) is mandatory for employers and self-employed workers. In the rest of the Canada Parental leave is funded by unemployment insurance (EI). The calculator applies the 2026 rules of the selected province.
Bankeo connects SMEs with audited accountants and specialists in payroll, HR, and employer declarations. The service is free for the business owner. We understand your team and payroll, and we introduce you to accountants capable of managing your payroll from start to finish.
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Read the article →Bankeo connects SMEs with audited accountants specializing in payroll and employer declarations. This service is free for entrepreneurs.
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