Payroll and Benefits Guide Canada – British Columbia
Last updated: May 28, 2025
Contribution
|
Employer Payroll Contributions
|
|
|
5.95%
|
Canada Pension Plan (CPP), applied on annual salary between 3,500 to 71,300 CAD |
|
4.00%
|
Canada Pension Plan 2 (CPP2), applied on annual salary between 71,300 to 81,200 CAD |
|
1.64%
|
Employment insurance (EI), applied on an annual maximum insurable earnings ceiling up to 65,700 CAD |
|
1.55% (average rate)
|
Workers Compensation Act, applied on a maximum wage rate of 121,500 CAD. The applicable rate is set via WorkSafeBC.
|
|
9.14%
|
Total Employment Cost
|
|
Employee Payroll Contributions
|
|
|
5.95%
|
Canada Pension Plan (CPP), applied on annual salary between 3,500 to 71,300 CAD |
|
4.00%
|
Canada Pension Plan 2 (CPP2), applied on annual salary between 71,300 to 81,200 CAD |
|
1.64%
|
Employment Insurance (EI), applied on an annual maximum insurable earnings ceiling up to 65,700 CAD
|
|
7.59%
|
Total Employee Cost
|
|
Employee Income Tax
|
|
|
Federal
|
Annual |
|
15.00%
|
Up to 57,375 CAD |
|
20.50%
|
57,375 – 114,750 CAD |
|
26.00%
|
114,750 – 177,882 CAD |
|
29.00%
|
177,882 – 253,414 CAD |
|
33.00%
|
253,414 CAD and over |
|
British Columbia
|
Annual |
|
5.06%
|
up to 49,279 CAD |
|
7.7%
|
42,279 – 98,560 CAD |
|
10.5%
|
98,560 – 113,158 CAD |
|
12.29%
|
113,158 – 137,407 CAD
|
|
14.7%
|
137,407 – 186,306 CAD |
|
16.80%
|
186,306 – 259,829 CAD |
|
20.5%
|
259,829 CAD and over |
Employer taxes
Employee taxes
Minimum Wage
General
The standard minimum wage in British Columbia is 17.85 CAD per hour.
The minimum wage rate set for employees of Federally regulated organizations will be the current minimum wage rate specified in the jurisdiction in which the employee performs the work.
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
An employer has 1 month to remit an employee’s first pay. After this, wages must be paid at regular intervals of no more than 16 days, or 1 month in case of managerial personnel. If pay day falls on a statutory holiday, the wages must be paid on the preceding working day.
13th Salary
There is no legislation for 13th-month payments in British Columbia, Canada.
Authority Payments
|
Authority Payment |
Paid To |
Due Date |
Method |
|
Federal Taxes, Employer contribution + withholding taxes |
CRA |
Either monthly or semi monthly |
e-check |
|
Health Contribution |
EHT |
Monthly |
e-check |
Working Hours
General
A full-time workweek is 40 hours, 8 hours per day, 5 days a week.
Overtime
Overtime is calculated based on the higher of the daily or weekly threshold.
- Daily Threshold: Hours worked over 8 hours in a day.
- Weekly Threshold: Hours worked over 44 hours in a week.
- Calculation: The employee is entitled to overtime pay for the number of hours that is the greater of the daily overtime hours or the weekly overtime hours.
Example: If an employee works 10 hours for 5 days (50 hours total):
- Daily Overtime: (10 hours – 8 hours) $\times$ 5 days = 10 hours
- Weekly Overtime: (50 hours – 44 hours) = 6 hours
- Result: The employee is paid 10 hours of overtime (the greater amount).
Mandatory Overtime Pay Rate
-
Minimum Pay Rate: The minimum overtime rate is 1.5 times (Time and a half) the employee’s regular wage rate.
Alternative Compensation: Time Off in Lieu (Banking)
Instead of monetary pay, an employer and employee may enter into a written agreement to compensate overtime with paid time off.
- Banking Rate: Overtime hours are banked at a rate of at least 1 hour of paid time off for every hour of overtime worked.
- Payout: The banked time off must be used within 6 months of the end of the pay period in which it was earned. If not used, the employer must pay the overtime at the 1.5 times monetary rate.
Maximum Hours and Rest
- Maximum Work Day: An employee generally cannot be required to work more than 12 hours in a single day, except in emergency situations (e.g., accident, urgent plant work, unforeseeable circumstances).
- Day of Rest: Employees are entitled to at least one day of rest in each work week.
Exemptions
Overtime pay rules do not apply to certain categories of employees, regardless of hours worked:
- Managers and Supervisors: Employees whose duties are primarily managerial or supervisory and who have the authority to make decisions on behalf of the employer.
- Professionals: Employees in certain regulated professions (e.g., Accountants, Architects, Engineers, Lawyers, IT professionals, Optometrists, etc.).
- Specific Sales Roles: Certain commissioned salespeople working outside the employer’s premises (e.g., real estate brokers, car salespersons).
Leave
Annual Leave (vacation)
In British Columbia, after the first 12 months of employment employees are entitled to 2 weeks of paid vacation per year. After 5 years of employment, employees are entitled to 3 weeks of paid vacation per year.
Vacation pay is at least 4% of all wages paid in the previous year. After the employee completes 5 years of employment, the employer must pay vacation pay of at least 6% of all wages earned in the previous year. Vacation pay must be paid at least 7 days before an employee starts their annual vacation time unless it has been agreed in writing to add it to the regular payroll instead.
PTO Carryover
Note:
- For Papaya Direct, this varies by province; it’s allowed if going above and beyond the minimums but the policy must be reviewed by HR. Employees cannot skip taking vacation time that is mandated by law. Vacation that’s over and above the minimum entitlements can be carried over as per client policy.
- For People2.0, there is no carryover.
Public Holidays
There are 10 public holidays in British Columbia. When public holidays fall on a weekend, it is customary to give off in lieu either the previous working day or next working day.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 16 February 2026 | Monday | Family Day | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 18 May 2026 | Monday | Victoria Day | Standard holiday |
| 1 July 2026 | Wednesday | Canada Day | Standard holiday |
| 3 August 2026 | Monday | British Columbia Day | Standard holiday |
| 7 September 2026 | Monday | Labour Day | Standard holiday |
| 30 September 2026 | Wednesday | National Day for Truth and Reconciliation | Standard holiday |
| 12 October 2026 | Monday | Thanksgiving Day | Standard holiday |
| 11 November 2026 | Wednesday | Remembrance Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Sick Days
Sick leave entitlement in British Columbia depends on whether the employee falls under provincial or federal regulation, and whether they qualify for Employment Insurance (EI) sickness benefits.
- Regulated workers under the British Columbia Employment Standards are entitled to illness or injury job-protected leave of up to 5 days paid and 3 days unpaid within each calendar year. To qualify for this leave, workers must have been employed for at least 90 calendar days. Employers have the right to ask for reasonably sufficient proof of the need for this leave. More details and eligibility criteria can be found on the Government of British Columbia website.
- Federally regulated workers are entitled under the Canada Labour Code to receive up to 10 days paid sick leave per year. These 10 days paid sick leave is accrued during the year after an initial 30-day qualifying period of continuous employment has been completed. Following this qualifying period, workers earn the first 3 days of paid medical leave. Following this, workers earn 1 further day of paid sick leave at the start of each month after completing 1 month of continuous employment until a maximum of 10 days paid sick leave per year has been accrued. Any days of medical leave with pay that are not taken within the year will be carried over to the beginning of the new year up to a maximum of 10 days. More details and eligibility criteria can be found on the Government of Canada website.
- Regardless of jurisdiction, workers may also qualify for Employment Insurance (EI) sickness benefits, which are administered federally. These benefits are available to employees who are unable to work due to medical reasons and meet the eligibility criteria. EI sickness benefits provide 55% of average weekly earnings, up to 695 CAD per week, for a maximum of 26 weeks. To qualify, employees typically need 600 insured hours worked in the 52 weeks prior to illness and must submit a medical certificate. More information can be found on the Government of Canada website.
Maternity Leave
In Canada, Maternity and Parental leave rights are set out through the nationwide Employment Insurance (EI) program, which is applied across all provinces and entitles eligible mothers to take up to 15 weeks of maternity leave with income support. For Federally regulated employees and industries, up to 17 weeks maternity leave can be taken. During this period, eligible employees will receive maternity benefits equal to 55% of their earnings, up to a maximum of 695 CAD per week. To receive this benefit, workers must provide a certificate from a healthcare practitioner confirming the pregnancy. For further guidance and eligibility criteria, refer to the Government of Canada website.
In addition to EI, each individual province sets their own set of employment standards that determine the full available leave entitlements for parents.
In British Columbia, mothers are entitled to up to 17 consecutive weeks of unpaid maternity leave. Leave must begin on or before the date the baby is born and cannot start earlier than 13 weeks before the expected birth date. Following the birth, at least six weeks of leave must be taken. If the employee is unable to return to work for reasons related to childbirth, the leave can be extended for six weeks (for a total of 12 weeks). Employees must submit a written request to their employer at least four weeks before taking maternity leave. More information and eligibility criteria can be found on the Government of British Columbia website.
Following the completion of the maternity benefits, mothers can go on to take Parental Leave.
Paternity Leave
Paternity leave falls under the parental leave entitlement.
Parental Leave
In Canada, Parental leave benefits are available to parents of a newborn or newly adopted child through the nationwide Employment Insurance (EI) program, which is applied across all provinces. Parents can choose between 2 options:
- Standard parental benefits – up to 40 weeks leave shared between parents, but one parent cannot take more than 35 weeks, with pay equal to 55% of their earnings, up to a maximum of 695 CAD per week. This leave must be used within 52 weeks of the birth.
- Extended parental benefits – up to 69 weeks leave can be shared between parents, but one parent cannot take more than 61 weeks, with pay equal to 33% of their earnings, up to a maximum of 417 CAD per week. This leave must be used within 78 weeks of the birth.
The Parental leave period does not have to be taken consecutively but must be within the above mentioned timeframe. Further information and eligibility criteria can be found on the Government of Canada website.
In addition to EI, each individual province can set their own set of employment standards that determine the full available leave entitlements for parents. In British Columbia, employees can take up to 62 weeks of unpaid parental leave with both parents able take one full period of parental leave. Parental leave can begin at any time within 78 weeks of a baby being born or a child being placed. It can be extended by up to 5 weeks if the child needs more care due to a physical, psychological, or emotional condition. An employer may ask for proof that an employee is entitled to parental leave or an extension of parental leave. More information and eligibility criteria can be found on the Government of British Columbia website.
Other Leave
Bereavement Leave
This leave is in place for workers whose family member has died. There are two support systems; the system that applies depends on if the worker falls under a federally regulated sector or under the provincial sector:
- Workers regulated under the British Columbia Standards are entitled to take up to 3 days of unpaid leave if an immediate family member dies. This leave does not have to be taken as consecutive days, does not need to be for attending a funeral and does not have to start on the date of the death.
- Federally regulated workers under the Canada Labour Code are entitled to up to 10 days of job protected bereavement leave following the death of an immediate family member. This leave can be taken within 6 weeks of the death. The first 3 days of this leave will be paid if the worker has completed 3 months of continuous employment.
Family Responsibility Leave
Employees have the right to take up to 5 days of unpaid Family Responsibility Leave each employment year (an employment year begins on the date the employee started work) to help with the care, health, or education of a child under the age of 19 in their care. An employee can also ask for this type of leave to care for the health of any other member of their immediate family. Family responsibility leave does not accumulate from year to year.
Compassionate Care Leave
This leave is in place for workers who need to care for gravely-ill family members, with significant risk of dying. There are two support systems in place which can both be applied to workers:
- Under Canada’s Federal Employment Insurance (EI), eligible employees are entitled to take up to 27 weeks of unpaid compassionate care leave within a 52-week period to care for a family member who is terminally ill (the 52-week period starts on the Sunday of the week that the certificate is given or from the Sunday of the week that the employee first takes leave). The employee must request the leave from their employer but do not have to make the request in writing or give advance notice. Employees must obtain a medical certificate that states the family member has a serious medical condition and is at risk of death within 26 weeks.
- Under the British Columbia’s Employments Standard, eligible employees who have been employed for at least 90 days can take up to 27 weeks of leave to care for gravely-ill family members (which exceeds the EI leave length by one week). Employees must give their employer a medical certificate for the ill family member and, where possible, must give written notice at least 2 weeks before the start date of their leave. Notice must include the estimated date of the employee’s return to work. This leave is unpaid, but workers might still be eligible to receive income support under the EI.
Critical Illness Leave
This leave is in place for workers who need to care for a critically ill or injured family member. There are two support systems in place which can both be applied to workers:
- Under the British Columbia Employment Standards, eligible employees can take up to 36 weeks to care for a child and up to 16 weeks to care for a family member over the age of 19. who have been employed by their employer for at least six consecutive months can take unpaid critical illness job-protected leave of up to 37 weeks in relation to a critically ill minor child, or 17 weeks in relation to a critically ill adult within a 52-week period. Employees must give their employer a qualified health practitioner issued certificate stating stating who is ill and the period that support will be required. Whilst this leave is unpaid, workers might still be eligible to receive income support under the EI.
- Under Canada’s Federal Employment Insurance (EI), eligible employees who have at least 600 insured hours of work in the 52 weeks before the start of the claim or since the start of their last claim (whichever is shorter) is entitled to caregiving leave of either 35 weeks to care for a child under 18 or 35 weeks to care for an adult family member. There might also be eligibility for income support equal to 55% of earnings, up to a maximum of 695 CAD per week.
Additional Leave
Under the Canada Labour Code and British Columbia Employments Standard other types of leave are also regulated including Covid Leave, Reservist Leave, Jury Leave, Domestic or Sexual Violence Leave and Death or Disappearance of a Child Leave.
PAID MATERNITY LEAVE (DAYS)
Termination
Termination Process
The termination process is outlined under the British Columbia Employment Standards.
Employers can also fire an employee for just cause if they commit a serious offense; where there is proven just cause, the employer does not have to give notice or pay. Unsatisfactory performance or minor misconduct are not considered just cause, and an employer will be required to give notice and pay when terminating for such reasons.
To end an employee’s job, employers can give written working notice or an equal amount of pay called compensation for length of service. They can also choose to give a combination of both notice and pay.
If an employer plans to terminate 50 or more employees at a single location within a 2-month period, the employer must give written notice of group termination to each employee affected, the Minister of Labour and any trade union that represents the employees.
Upon termination of workers, final wages must be made within 48 hours after the last day an employee works when an employer ends employment or within 6 days after the employee’s last day of work when an employee quits.
| Salary payment interval / date | Final payment on termination | Bank account payment requirement |
|---|---|---|
| Employers must pay employees at least twice a month, and no later than 8 days after the end of each pay period. Pay periods cannot exceed 16 days. | When employment ends: If the employer ends the employment, all final wages must be paid within 48 hours after the last working day; if the employee quits, payment must be made within 6 days after their last day. | Payment may be by cash, cheque, money order, or direct deposit to the employee’s bank account if the employee has given written authorization (or in a collective agreement). |
Notice Period
Notice period is not required if an employee resigns and no payout is required for compensation of length of employment.
When an employer terminates a worker, they must provide the following notice periods:
- Up to 3 months of service = no notice required
- 3 months to 1 year of service = 1 week notice
- 1 to 3 years of service = 2 weeks of notice
- Above 3 years of service = 3 weeks of notice plus 1 week of notice after each additional year of employment (capped at a maximum of 8 weeks)
Severance Pay
In British Columbia, workers terminated without cause are usually entitled to severance or termination pay, at an amount determined by the length of service:
- Up to 3 months of service = no payout required
- 3 months to 1 year of service = 1 week payout
- 1 to 3 years of service = 2 weeks payout
- Above 3 years of service = 3 weeks payout plus 1 week per year beyond 3 years (capped at a maximum of 8 weeks)
Probation Period
The probation period in British Columbia for permanent employees is generally set at 3 months.
Minimal Statutory Termination Costs
Notice Periods:
Yes, after 3 months in all provinces EXCEPT in:
Manitoba- after 30 days
New Brunswick & Prince Edward Island- after 6 months
Saskatchewan- after 13 weeks
see below for each individual province
Severance
Statutory severance pay is not universal across all of Canada. Only federal employees with 12+ months of employment and those in Ontario with 5 years of employment are owed.
However Canada is extremely worker friendly and common law does provide precedent for workers who are terminated without cause to receive severance pay
PTO unused vacation time must be paid out
British Columbia
After 3 months: 1 week
1-3 years: 2 weeks
3+ years: 3 weeks + 1 week per year of service (max 8 weeks)
Common Benefits
- Cell phone and internet allowance up to 250 CAD a month.
- Supplementary health care (which typically cover costs of items or care that are not covered by Canada’s universal healthcare system such as prescription drugs or vision).
- Dental plan
- Private pension/Retirement Savings plan contribution (2-6 % of base salary is common)
Immigration
VISA
The Government of Canada operates the Temporary Foreign Worker Program to enable foreign citizens to apply to work in Canada for a set period. The program covers all job roles and knowledge levels, and it can be used when a qualified Canadian citizen or permanent resident is not available or suitable for the role.
There are federal (Government of Canada) immigration programs and provincial programs (Government of British Columbia) in place in British Columbia.
VAT
General
Canadian Federal GST is charged at 5%. British Columbia PST is 7%, resulting in a combined GST and PST rate of 12.00%.
Stay up to date on payroll & employment law changes
Version History
Minimum wage increased to $15.20/hr.
Tax brackets increased for all tax rates for both federal and state taxes
Questions & Answers
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Payroll and Benefits Guide
in Canada – British Columbia
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 16 February 2026 | Monday | Family Day | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 18 May 2026 | Monday | Victoria Day | Standard holiday |
| 1 July 2026 | Wednesday | Canada Day | Standard holiday |
| 3 August 2026 | Monday | British Columbia Day | Standard holiday |
| 7 September 2026 | Monday | Labour Day | Standard holiday |
| 30 September 2026 | Wednesday | National Day for Truth and Reconciliation | Standard holiday |
| 12 October 2026 | Monday | Thanksgiving Day | Standard holiday |
| 11 November 2026 | Wednesday | Remembrance Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
What are some common non-mandatory benefits employers provide their workers?
Some common benefits include cell phone and internet allowance, car allowance, supplementary health care/dental plan (which typically cover costs of items or care that are not covered by Canada’s universal healthcare system such as prescription drugs or vision ware), and private pension contribution of the employer (2-6 % of base salary).