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Free tools › Employer on-costs by country

Employer on-costs: Canada vs Singapore

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

How do statutory employer costs compare between Canada and Singapore?

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. Singapore: 17% employer CPF for staff 55 and under, but only for Citizens and PRs, and only up to S$8,000 a month, so the effective rate falls as salaries rise. On a local salary of 100,000 that is C$6,219 (6.2%) in Canada versus S$16,455 (16.5%) in Singapore in fixed statutory costs.

Canada vs Singapore, side by side

CanadaSingapore
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.17% employer CPF for staff 55 and under, but only for Citizens and PRs, and only up to S$8,000 a month, so the effective rate falls as salaries rise.
On 60,000 (local)C$4,731 (7.9%)S$10,335 (17.2%)
On 100,000 (local)C$6,219 (6.2%)S$16,455 (16.5%)
On 150,000 (local)C$6,219 (4.1%)S$16,455 (11.0%)
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 employersEmployer CPF (55 and under): 17%, Citizens/PRs only; Ordinary wage ceiling: S$8,000/month since 1 Jan 2026; Skills Development Levy: 0.25%, capped S$11.25/month, all employees

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.

Singapore

CPF is the big line: 17% employer contribution for employees aged 55 and below, on ordinary wages up to S$8,000 a month (S$102,000 a year all-in). It applies to Singapore Citizens and Permanent Residents only; work pass holders attract no CPF, though a foreign worker levy applies to work permit and S Pass holders. The Skills Development Levy adds 0.25%, capped at S$11.25 a month.

  • Employer CPF (55 and under)17%, Citizens/PRs only
  • Ordinary wage ceilingS$8,000/month since 1 Jan 2026
  • Skills Development Levy0.25%, capped S$11.25/month, all employees
  • Work pass holdersNo CPF; foreign worker levy instead
Length of serviceEntitlement
55 and below17%
Above 55 to 6016%
Above 60 to 6512.5%
Above 65 to 709%
Above 707.5%
  • Senior-band rates step up again on 1 Jan 2027.
  • The wage ceiling makes Singapore the only market here where the employer's effective rate drops as pay rises.

Source: CPF Board (Rates from 1 Jan 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: Singapore

Salary (local)ComponentsTotal
60,000Employer CPF S$10,200; Skills Development Levy S$135S$10,335 (17.2%)
100,000Employer CPF S$16,320; Skills Development Levy S$135S$16,455 (16.5%)
150,000Employer CPF S$16,320; Skills Development Levy S$135S$16,455 (11.0%)

Citizens and PRs only; work pass holders attract a foreign worker levy instead of CPF.

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 (Singapore). 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
SingaporeCPF BoardRates from 1 Jan 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 Singapore?

17% employer CPF for staff 55 and under, but only for Citizens and PRs, and only up to S$8,000 a month, so the effective rate falls as salaries rise. CPF is the big line: 17% employer contribution for employees aged 55 and below, on ordinary wages up to S$8,000 a month (S$102,000 a year all-in).

Where can I check the source figures?

The sources section below links the Canada and Singapore 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, the Ministry of Manpower or your own adviser. Last reviewed July 2026.