Average salary in Canada in 2026

The average salary in Canada is approximately CAD $68,700 per year as of early 2026, based on Statistics Canada’s Survey of Employment, Payroll, and Hours. That national figure is a useful starting point, but it hides wide variation by province, city, industry, and role. For companies hiring employees in Canada, understanding these differences is essential for setting competitive compensation and budgeting accurately for total employer costs.

This guide breaks down Canadian salary data by province, major city, and industry, then covers what employers actually pay on top of gross salary. If you are hiring in Canada from abroad, you will also find context on how to use this data alongside an Employer of Record to get your compensation right from day one.

Salaries in Canada vary considerably by province and territory. The differences reflect regional economies, dominant industries, cost of living, and labour market conditions. The following figures are based on Statistics Canada’s average weekly earnings data, converted to annual equivalents.

The territories (Nunavut, Northwest Territories, Yukon) have the highest average earnings in Canada, but this is driven by the cost of operating in remote locations rather than a broader talent market. For most companies hiring in Canada, the provincial figures for Ontario, British Columbia, Alberta, and Quebec are more relevant.

Alberta’s higher average reflects the concentration of energy, mining, and resource extraction industries. Ontario and British Columbia are the two largest provincial labour markets, home to the major hiring hubs of Toronto and Vancouver respectively. Quebec offers competitive salaries with a lower cost of living in cities like Montreal, though the province has distinct employment standards and language requirements that employers need to account for.

For companies hiring in Canada, the major cities are where most of the hiring happens. City-level compensation tends to run above the provincial average due to higher cost of living and greater concentration of professional and technology roles.

Toronto is Canada’s largest city and the country’s financial capital. Average salaries in Toronto typically exceed the Ontario provincial average, with professional roles in finance, technology, and consulting commanding premium compensation. Technology roles in Toronto commonly range from CAD $75,000 to $120,000 depending on seniority and specialisation.

Vancouver attracts talent in technology, film production, and natural resources. Salaries are comparable to Toronto in many sectors, though housing costs are among the highest in North America. Technology and creative industry roles are particularly competitive.

Montreal offers a strong talent pool at a lower cost of living than Toronto or Vancouver. The city has a growing technology sector and benefits from bilingual (English and French) talent. Salaries in Montreal are generally 10-15% lower than Toronto for equivalent roles, but the cost of living difference often makes them more competitive in real terms.

For role-specific and city-level salary benchmarks, annual salary guides published by firms like Robert Half and Randstad provide detailed data by role, location, and experience level.

Industry has a large effect on average compensation. The following figures reflect national averages from Statistics Canada and indicate the broad salary ranges employers should expect across major sectors.

Highest-paying industries in Canada

The industries with the highest average weekly earnings include utilities (averaging over CAD $2,000 per week, or approximately $104,000 annually), mining, quarrying, and oil and gas extraction (approximately $1,700 per week, or $88,000 annually), and professional, scientific, and technical services (approximately $1,600 per week, or $83,000 annually).

Finance and insurance, public administration, and management of companies and enterprises also sit above the national average.

Mid-range industries

Construction, transportation and warehousing, and manufacturing generally fall close to or slightly above the national average of $1,320 per week.

Lower-paying industries

Accommodation and food services, retail trade, and arts, entertainment, and recreation tend to have the lowest average earnings, reflecting a higher proportion of part-time and lower-wage positions.

For companies hiring in technology, finance, or professional services, the national average is not a useful benchmark. Compensation in these sectors is considerably higher, and accurate salary benchmarking requires role-specific and location-specific data.

The gross salary you offer a Canadian employee is not your total cost. On top of it, you are responsible for mandatory employer contributions that add approximately 10-15% to the base salary, depending on the employee’s earnings and province.

Canada Pension Plan (CPP): Employers contribute 5.95% on earnings between $3,500 and $74,600. An additional CPP2 contribution of 4% applies on earnings between $74,600 and $85,000. Maximum employer contribution for 2026 is $4,646.45 (CPP plus CPP2 combined).

Employment Insurance (EI): Employers pay 2.28% on insurable earnings up to $68,900, for a maximum of $1,572.30 per employee. Quebec employers pay 1.82% due to the province’s separate parental insurance programme.

Workers’ compensation: Mandatory in all provinces. Premiums vary by province and industry classification and are paid entirely by the employer.

Provincial payroll taxes: Some provinces levy additional payroll taxes. Ontario, for example, has the Employer Health Tax (EHT), which applies to employers with total Ontario payroll exceeding $1 million. Quebec has the Health Services Fund, the Workforce Skills Development and Recognition Fund, and QPIP contributions on top of the standard federal obligations.

For an employee earning CAD $75,000, the mandatory employer contributions typically add $7,000-$10,000 per year on top of the gross salary. This does not include supplementary benefits like private health and dental insurance, which most Canadian employees expect. For a detailed look at what those benefits cost and what a competitive package looks like, see our guide to employee benefits in Canada.

For a detailed breakdown of employment taxes in Canada, see our country guide.

To estimate the full employer cost for a specific role, use the Boundless cost calculator below.

If your company does not have a Canadian entity, you cannot simply add a Canadian employee to your existing payroll. Canadian employment law requires that employees are employed through a registered entity in Canada, with compliant contracts, CRA registration, payroll deductions, and provincial tax withholding.

An Employer of Record handles all of this on your behalf, employing your Canadian team through its own entity while you manage the day-to-day work. For companies hiring their first employees in Canada, this is typically the fastest and lowest-risk route. Our guide on how to hire employees in Canada walks through the three main options and the compliance requirements for each.