Canada: Lower Employer Taxes Compared to Other North American Markets


With a relatively low age-dependency ratio and high level of English proficiency, as well as an educated workforce, this market offers skilled contingent labor and low taxes, especially when compared to other North American markets.

Despite the recent push to install a $15 minimum wage, the cost and use of contingent labor in Canada should remain stable and largely unchanged. Only 25 percent of the Canadian Workforce − primarily those in the service industries − would benefit from such an increase. These minimum-wage and near-minimum wage positions rarely rely on contingent labor, and hence, the concern is minimal from a global labor standpoint. Many employers implementing non-contingent labor programs will be able to offset the additional wage costs by utilizing other cost-saving measures within their business strategy.

Organized labor’s “Fight for $15 & Fairness” campaign, as well as the Ontario Federation of Labour’s “Make it Fair Campaign”, are organizing and mobilizing workers across Ontario to pressure the Ontario government to improve working conditions for all workers. They claim that Ontario’s outdated labor policies and legislation leave workers without adequate protection as basic standards are lacking or are not being properly enforced.

Canada offers one of the most productive contingent labor forces in the world. Featuring one of the best geopolitical environments in the world, Canada also offers a two-week notice period (relatively low compared to other countries) and no national contract restrictions or severance pay requirements.