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Free tools › Employer on-costs by country

Employer on-costs: Canada vs New Zealand

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

How do statutory employer costs compare between Canada and New Zealand?

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. New Zealand: 3.5% compulsory KiwiSaver plus the ACC work levy (averaging $0.69 per $100 of wages). No payroll tax, no social security tax. On a local salary of 100,000 that is C$6,219 (6.2%) in Canada versus NZ$3,500 (3.5%) in New Zealand in fixed statutory costs.

Canada vs New Zealand, side by side

CanadaNew Zealand
The ruleCPP 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.3.5% compulsory KiwiSaver plus the ACC work levy (averaging $0.69 per $100 of wages). No payroll tax, no social security tax.
On 60,000 (local)C$4,731 (7.9%)NZ$2,100 (3.5%)
On 100,000 (local)C$6,219 (6.2%)NZ$3,500 (3.5%)
On 150,000 (local)C$6,219 (4.1%)NZ$5,250 (3.5%)
Key numbersCPP 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 employersKiwiSaver employer minimum: 3.5% (4% from 1 Apr 2028); ACC work levy: Industry-rated, average NZ$0.69 per NZ$100 (excl GST); Payroll tax: None

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.

New Zealand

New Zealand is the lightest of the six on fixed employer costs: 3.5% KiwiSaver (rising to 4% in April 2028) and an industry-rated ACC work levy averaging 0.69%. ESCT is deducted from the employer contribution rather than added on top, a detail that trips up cost models. There is no payroll tax and no separate social security charge.

  • KiwiSaver employer minimum3.5% (4% from 1 Apr 2028)
  • ACC work levyIndustry-rated, average NZ$0.69 per NZ$100 (excl GST)
  • Payroll taxNone
  • ESCTDeducted from the contribution, not added to it
  • Employees can temporarily drop to 3%, which drops the employer minimum with them.

Source: Inland Revenue (3.5% from 1 Apr 2026). Checked July 2026.

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.

The maths: New Zealand

Salary (local)ComponentsTotal
60,000KiwiSaver employer contribution NZ$2,100NZ$2,100 (3.5%)
100,000KiwiSaver employer contribution NZ$3,500NZ$3,500 (3.5%)
150,000KiwiSaver employer contribution NZ$5,250NZ$5,250 (3.5%)

Plus the industry-rated ACC work levy (2026/27 average NZ$0.69 per NZ$100).

Hiring in both markets?

Put a full number on each side with the true-cost calculators: True cost of an employee (Canada) and True cost of an employee (New Zealand). The complete six-market picture is on the Employer on-costs by country page.

Sources

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

MarketSourceRule / effectiveVerified
CanadaCanada Revenue Agency2026 rates from 1 Jan 2026Checked July 2026
New ZealandInland Revenue3.5% from 1 Apr 2026Checked July 2026
Where Compono fits

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, not just what the CV claims, so the hires behind these numbers hold up wherever you make them.

See how it works

Common questions

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).

What is the rule on employer on-costs in New Zealand?

3.5% compulsory KiwiSaver plus the ACC work levy (averaging $0.69 per $100 of wages). No payroll tax, no social security tax. New Zealand is the lightest of the six on fixed employer costs: 3.5% KiwiSaver (rising to 4% in April 2028) and an industry-rated ACC work levy averaging 0.69%.

Where can I check the source figures?

The sources section below links the Canada and New Zealand 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 your provincial employment standards office, Employment New Zealand or your own adviser. Last reviewed July 2026.