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Free tools › Employer on-costs by country

Employer on-costs: Canada vs United Kingdom

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

How do statutory employer costs compare between Canada and UK?

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. United Kingdom: 15% employer National Insurance above £5,000 a year, plus a 3% minimum pension contribution on the £6,240 to £50,270 band. On a local salary of 100,000 that is C$6,219 (6.2%) in Canada versus £15,571 (15.6%) in the UK in fixed statutory costs.

Canada vs United Kingdom, side by side

CanadaUnited Kingdom
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.15% employer National Insurance above £5,000 a year, plus a 3% minimum pension contribution on the £6,240 to £50,270 band.
On 60,000 (local)C$4,731 (7.9%)£9,571 (16.0%)
On 100,000 (local)C$6,219 (6.2%)£15,571 (15.6%)
On 150,000 (local)C$6,219 (4.1%)£23,071 (15.4%)
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 NI: 15% above £5,000/year; Pension minimum: 3% of the £6,240-£50,270 band; Employment Allowance: Up to £10,500 off NI for eligible employers

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.

United Kingdom

Employer NI runs at 15% on everything above a low £5,000 threshold, which makes it the heaviest headline rate of the six markets at typical salaries. Auto-enrolment adds a 3% employer minimum, but on the qualifying band only, not gross pay, a distinction plenty of cost models get wrong. The Employment Allowance refunds up to £10,500 for eligible smaller employers, and the 0.5% Apprenticeship Levy only bites above £3M of paybill.

  • Employer NI15% above £5,000/year
  • Pension minimum3% of the £6,240-£50,270 band
  • Employment AllowanceUp to £10,500 off NI for eligible employers
  • Apprenticeship Levy0.5%, paybills over £3M
  • Pension minimums are band-based: on a £100,000 salary the 3% applies to £44,030 of it, not the full amount.

Source: HMRC (2026-27 rates). 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: United Kingdom

Salary (local)ComponentsTotal
60,000Employer National Insurance £8,250; Pension auto-enrolment minimum £1,321£9,571 (16.0%)
100,000Employer National Insurance £14,250; Pension auto-enrolment minimum £1,321£15,571 (15.6%)
150,000Employer National Insurance £21,750; Pension auto-enrolment minimum £1,321£23,071 (15.4%)

Eligible employers deduct up to £10,500 Employment Allowance from the NI bill; the 0.5% Apprenticeship Levy applies above £3M of paybill.

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 (UK). 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
United KingdomHMRC2026-27 ratesChecked 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 the UK?

15% employer National Insurance above £5,000 a year, plus a 3% minimum pension contribution on the £6,240 to £50,270 band. Employer NI runs at 15% on everything above a low £5,000 threshold, which makes it the heaviest headline rate of the six markets at typical salaries.

Where can I check the source figures?

The sources section below links the Canada and the UK 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, GOV.UK or your own adviser. Last reviewed July 2026.