Skip to the main content.
Talk to an expert
Talk to an expert
Featured Offer
Ambitious 50 →
6 months of Hire and Engage free for businesses under 50 people.

Hey Compono!

A coach that actually gets you.

Get 10 minutes free, then $15 a month. Cancel anytime.

Get Started ≫
Free tools › Employer on-costs by country

Employer on-costs:
Australia vs Canada

Statutory employer on-costs in Australia and Canada, side by side, with the primary source for every figure.

How do statutory employer costs compare between Australia and Canada?

Australia: 12% superannuation on top of salary, with state payroll tax (4.75% to 6.85%) above thresholds and industry-rated workers compensation on top. Canada: CPP at 5.95% plus CPP2 at 4%, EI at 2.28%, then Ontario's Employer Health Tax, industry-rated WSIB premiums and 4% to 6% vacation pay on top. On a local salary of 100,000 that is A$12,000 (12.0%) in Australia versus C$6,219 (6.2%) in Canada in fixed statutory costs.

Australia vs Canada, side by side

AustraliaCanada
The rule12% superannuation on top of salary, with state payroll tax (4.75% to 6.85%) above thresholds and industry-rated workers compensation on top.CPP at 5.95% plus CPP2 at 4%, EI at 2.28%, then Ontario's Employer Health Tax, industry-rated WSIB premiums and 4% to 6% vacation pay on top.
On 60,000 (local)A$7,200 (12.0%)C$4,731 (7.9%)
On 100,000 (local)A$12,000 (12.0%)C$6,219 (6.2%)
On 150,000 (local)A$18,000 (12.0%)C$6,219 (4.1%)
Key numbersSuperannuation guarantee: 12% (max contribution base A$270,830 a year); Payroll tax: 4.75% to 6.85% by state, above thresholds; Workers compensation: Compulsory, industry-rated (state averages ~1.3-1.8%)CPP employer (2026): 5.95% of C$3,500-C$74,600 + 4% CPP2 to C$85,000 (max C$4,646.45); EI employer (2026): 2.282% to C$68,900 (max C$1,572.30); Ontario EHT: Up to 1.95%; C$1M exemption for eligible employers

Australia

The universal fixed cost is the 12% superannuation guarantee, now paid every payday under Payday Super. Payroll tax only starts above state thresholds (NSW $1.2M of annual wages, for example), so small employers often pay none. Workers compensation is compulsory everywhere but industry-rated, averaging roughly 1.3% to 1.8% of wages.

  • Superannuation guarantee12% (max contribution base A$270,830 a year)
  • Payroll tax4.75% to 6.85% by state, above thresholds
  • Workers compensationCompulsory, industry-rated (state averages ~1.3-1.8%)
  • The super rate has stopped climbing; 12% is the legislated end state.
  • From 1 July 2026 contributions must reach the fund within 7 business days of payday.

Source: Australian Taxation Office (12% since 1 Jul 2025; Payday Super from 1 Jul 2026). Checked July 2026.

Canada

Canada's federal layer is CPP (5.95% employer to the C$74,600 ceiling, plus the CPP2 band at 4% up to C$85,000) and EI (1.4 times the employee rate, effectively 2.28% to the C$68,900 maximum). Ontario adds the Employer Health Tax at up to 1.95%, though a C$1M exemption spares most small employers, plus WSIB premiums averaging C$1.23 per C$100. Vacation pay of 4% to 6% is also a true payroll on-cost. Quebec swaps in QPP at 6.30%, QPIP and the Health Services Fund, so the two big provinces genuinely cost differently.

  • CPP employer (2026)5.95% of C$3,500-C$74,600 + 4% CPP2 to C$85,000 (max C$4,646.45)
  • EI employer (2026)2.282% to C$68,900 (max C$1,572.30)
  • Ontario EHTUp to 1.95%; C$1M exemption for eligible employers
  • WSIBIndustry-rated, 2026 average C$1.23 per C$100
  • Vacation pay4% (under 5 years) / 6% (5+ years)
  • Quebec runs a different stack: QPP 6.30%, QPIP 0.602%, reduced EI and the Health Services Fund.
  • The caps mean the effective federal rate falls once salaries pass roughly C$85,000.

Source: Canada Revenue Agency (2026 rates from 1 Jan 2026). Checked July 2026.

The maths: Australia

Salary (local)ComponentsTotal
60,000Superannuation guarantee A$7,200A$7,200 (12.0%)
100,000Superannuation guarantee A$12,000A$12,000 (12.0%)
150,000Superannuation guarantee A$18,000A$18,000 (12.0%)

Plus state payroll tax above thresholds (4.75% to 6.85%) and industry-rated workers compensation.

The maths: Canada

Salary (local)ComponentsTotal
60,000CPP employer C$3,362; CPP2 employer C$0; EI employer C$1,369C$4,731 (7.9%)
100,000CPP employer C$4,230; CPP2 employer C$416; EI employer C$1,572C$6,219 (6.2%)
150,000CPP employer C$4,230; CPP2 employer C$416; EI employer C$1,572C$6,219 (4.1%)

Plus Ontario Employer Health Tax (up to 1.95% past the C$1M exemption), industry-rated WSIB premiums and 4% to 6% vacation pay.

Sources

Every figure on this page comes from the government source for its market.

MarketSourceRule / effectiveVerified
AustraliaAustralian Taxation Office12% since 1 Jul 2025; Payday Super from 1 Jul 2026Checked July 2026
CanadaCanada Revenue Agency2026 rates from 1 Jan 2026Checked July 2026

Next step

Calculator

True cost of an employee (Australia)

Put a full loaded-cost number on the Australia side. Free, every rate sourced.

Run the Australia number →Calculator

True cost of an employee (Canada)

The same loaded-cost maths for Canada, on local rates.

Run the Canada number →Compare markets

Employer on-costs by country

The complete six-market picture, with the pick-two selector.

See all six →Free tools

All HR calculators

Every free tool for HR leaders, across six markets. No sign-up.

Browse the tools →

The rules you can look up.
The people you cannot.

Compono is a talent intelligence platform: an applicant tracking system and an employee engagement platform built on the same people data.

Comparing entitlements is the easy half of hiring across markets. The hard half is whether the person you hire in Sydney, Singapore or Seattle will actually work out, and that risk looks the same in every jurisdiction. Compono matches candidates on how they work as well as what the CV claims, so the hires behind these numbers hold up wherever you make them.

See how it works
Compono
$34M
saved by VicRoads over two years

Common questions

What is the rule on employer on-costs in Australia?

12% superannuation on top of salary, with state payroll tax (4.75% to 6.85%) above thresholds and industry-rated workers compensation on top. The universal fixed cost is the 12% superannuation guarantee, now paid every payday under Payday Super.

What is the rule on employer on-costs in Canada?

CPP at 5.95% plus CPP2 at 4%, EI at 2.28%, then Ontario's Employer Health Tax, industry-rated WSIB premiums and 4% to 6% vacation pay on top. Canada's federal layer is CPP (5.95% employer to the C$74,600 ceiling, plus the CPP2 band at 4% up to C$85,000) and EI (1.4 times the employee rate, effectively 2.28% to the C$68,900 maximum).

Where can I check the source figures?

The sources section below links the Australia and Canada government pages every figure on this page was verified against in July 2026.

This page is general information, not legal advice. We check figures annually and update them on a best-efforts basis, but employment rules change and we cannot promise everything here is current or complete. Before you act on it, confirm the detail with the Fair Work Ombudsman, your provincial employment standards office or your own adviser. Last reviewed July 2026.