13th month pay
in Canada.

SALARY PAYMENT IN Canadian Dollar (CAD, $)

CONTRACT LANGUAGES English

PAYROLL TAX 7.91%

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours
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Canada

Is there a 13th month pay in South Canada?

There are currently no legal mandates for 13th month pay in Canada.

How is the 13th month pay calculated in Canada?

As 13th-month pay is not typical in Canada, there is no specific way in which it is calculated. Where offered, it would generally be one month’s gross salary extra.

When is the 13th month salary paid in Canada?

If it is offered, it is usually offered at the end of the year, around Christmas time.

Does the 13th month salary amount to an extra payment by the employer?

Yes. Where offered it would generally be considered an extra payment.

Is the 13th month salary taxable in Canada?

Yes. If offered by an employer, 13th month pay would be taxable just like any other income. Similarly, it would be subject to mandatory contributions.

Hiring in Canada, Made Easy

Your business can easily hire employees in Canada without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

Is the 13th month pay required by law or standard in Canada?

No. It is neither required, nor standard in Canada.

Are there more than 13th months of pay in Canada?

No. There is generally neither 13th, nor 14th, month pay in Canada.

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"As a seed-stage, London-based startup, we were initially hesitant to expand internationally due to the administrative workload involved. Horizons took the headache out of the process, allowing us to hire a team of software engineers in Germany."

Gabor SzedlakCo-founder & COO at MindLabs (UK)

"I truly appreciated the thoroughness and the professionalism of Horizons personnel while we hired internationally with them. They were knowledgable on all subject matters pertaining to international employment."

Gary PaskyVP Software Development, PICS ITech (USA)

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Chris MorrellManaging Director, Schaeffler Group (Germany)

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Christoph EngelbertCo-Founder & CTO, Clevabit (Germany)

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Katia FlamandHuman Resources, Devian Chemicals (Belgium)