Frequently Asked Questions
As experts in Canadian payroll legislation, we’re often asked about minimum wage, overtime, and more. Here’s a list of our most frequently asked questions.
What is minimum wage?
Minimum wage is the lowest wage rate an employer can pay an employee. Most employees are eligible for minimum wage, whether they are full-time, part-time, casual employees, or are paid an hourly rate, commission, piece rate, flat rate, or salary.
Minimum wage differs from one province or territory to the next. The following table provides the general minimum wage at the federal and provincial/territorial level as well dates these rates became effective.
For more information minimal wage compliance and rules, please refer to your provincial provincial/territorial website linked below.
- See The National Payroll Institute’s Minimum Wage Updates for information on special minimum wage rates for certain categories of employees.
- For a handy guide, download this Minimum Wage Map. Please note, some local exceptions based on profession.
Minimum Wage by Province
See our 2021 Canadian Payroll Year-End Guide for a table outlining the minimum hourly rate for general workers by province or territory.
The following table provides an overview of the minimum hourly rate for general workers by province or territory:
What is overtime?
Canadian labour laws protect workers from being overworked and underpaid. Labour laws also include overtime. If your employees work over a certain threshold, you are required to pay them extra. In most provinces, the overtime rate is 1.5 times the employee’s regular compensation, and it’s typically paid after an employee works more than eight hours a day or 40 hours per week. That said, there are several exceptions, and the overtime rate may differ depending on location.
Who is entitled to overtime?
Hourly and salaried workers are eligible to receive overtime pay in Canada. However, there are some exempt professions that don’t qualify for overtime pay – including doctors, lawyers, and architects, among others. It’s also important to note that managers and supervisors are exempt from overtime pay. Who is and isn’t entitled to overtime varies by province, so please refer to provincial guidelines for more information.
Provincial Overtime Rates
The following table outlines federal and provincial overtime calculations:
What is reporting pay?
Reporting pay, sometimes referred to as call-in pay, is the minimum amount an employer is required to pay an employee for reporting to work for a shift. Examples of this include when employees are scheduled to work a shift and the shift is cancelled or shortened, or when employees are called into work when not previously scheduled.
Reporting pay is meant to ensure that all employees called into work, where there are no regularly scheduled hours or outside of their regularly scheduled hours, are compensated for any expenses or costs incurred by having to report to work.
For more information on reporting pay, including frequently asked questions and sample scenarios, see the legislation here.
Reporting Pay by Province
The following table outlines the reporting pay by province:
Four hours scheduled for a shift eight hours or more
Disclaimer: The information provided in this guide is for informational purposes only. It is not professional financial or legal advice nor is it intended to be a substitute therefore. Where there are discrepancies between the guide and information provided by the federal government, provincial government, or the Canadian Revenue Agency (CRA) or Revenu Québec, defer to the guidelines provided by the governing agencies.