Employer cost in Canada at different salaries
| Salary level | Gross salary | Employer SSC | Total employer cost |
|---|---|---|---|
| 67% of AW | 61,909 CAD | 11.1% | 68,768 CAD |
| 100% of AW | 92,401 CAD | 9.6% | 101,269 CAD |
| 167% of AW | 154,309 CAD | 6.7% | 164,684 CAD |
Worked example
The OECD average wage in Canada for 2025 is 92,401 CAD (about $81,745 in US-dollar purchasing power). On top of that salary the employer pays social security contributions of 9.6%, or 8,868 CAD. That brings the statutory total to 101,269 CAD a year (8,439 CAD a month), or 49 CAD per hour at 2,080 hours. In 2024 the rate at the average wage was 9.3%, so it rose. The employer rate falls from 9.6% at the average wage to 6.7% at 167% of it, a sign that contributions are capped above a ceiling, so high earners cost proportionally less.
Canada ranks #28 of 38 OECD countries for employer contributions at the average wage (OECD average: 16.6%).
Sources: OECD Taxing Wages 2025, comparative indicators (single worker, no children; average wage as defined by the OECD for each country) and OECD, Non-tax compulsory payments as an additional burden on labour income in 2025 (Tables 5 and 6) for mandatory pension and insurance payments that are not classed as taxes, such as Australian superannuation. Model estimates: voluntary benefits, local caps and sector-specific schemes are not included.
Related
Frequently asked questions
How much does an employee cost in Canada?
At the OECD average wage of 92,401 CAD, about 101,269 CAD a year including 9.6% employer social security (2025).
What are employer social security contributions in Canada?
About 9.6% of gross pay at the average wage, 11.1% at 67% and 6.7% at 167% of it (OECD model).