Here you are, a growing company that’s taking your business global. That’s exciting! But expanding into new markets requires an understanding of the culture, laws, regulations, and, of course, how much people get paid.
For companies expanding into Canada, having that understanding is no different. You want the same great talent you would anywhere. And as a bonus, Canada is a great place to hire. It has an educated, skilled workforce, an attractive average salary, and a stable regulatory system.
The thing is, salaries in Canada aren’t uniform. They’re local, not global. The average salary in Toronto, Canada, may differ from that in Ontario and Vancouver, and so on. Wages can vary drastically by province, industry, and the cost of living, so understanding the local data is crucial when setting salary ranges.
If you’re wondering what to pay employees in Canada, this article is for you, so you can attract great talent, reduce churn, ensure compliance, and streamline the hiring process.
What is the average salary in Canada in 2026?
If Canada is one of your target markets, you definitely need to know what the average salary in Canada is, so here’s the straight from national earnings data:
Before taxes, the average salary in Canada in 2026 is about CAD68,000–72,000 per year. This is based on annualized average weekly earnings reported by Statistics Canada from all industries.
In U.S. dollars, that’s roughly CAD 49,000–52,000.
The most recent national income data shows that average wages in Canada have grown steadily over the last decade, though not always in lockstep with inflation:
- In the early 2010s, average salaries in Canada were closer to CAD 4 5,000–50,000.
- By the mid-2020s, that average climbed to CAD 65,000–70,000.
When the average salary in Canada is compared to other global markets, it can be tricky. Tax rates, benefits, laws, and the cost of living all differ. Canada’s average salary is still higher than in other Western European countries, but lower than in the U.S., especially in the technology and finance sectors.
Statistics Canada regularly reports on the gender pay gap in its Labour Force Survey, and overall, women in Canada earn less than men on an hourly and annual basis. This gap exists across most industries, even after accounting for hours worked.
Several factors may contribute to the pay gap, including women working more part-time, lower-wage jobs, and fewer women in senior roles. That said, the gender wage gap is narrowing. Women continue to enter higher-paying industries like technology and finance, and better policies around parental leave and pay transparency are helping reduce gender wage disparities.
Average salary in Canada by job type
The type of job a person works drives wages more than almost any other factor, besides location.
Here are a few current average salary ranges in Canada:
| Role | Typical annual salary (CAD) | Approximate USD equivalent |
| Software Engineer | CAD 85,000 – CAD 110,000 | $61,000 – $79,000 |
| Product Manager | CAD 95,000 – CAD 135,000 | $68,000 – $97,000 |
| Marketing Manager | CAD 70,000 – CAD 100,000 | $50,000 – $72,000 |
| Finance / Accounting | CAD 60,000 – CAD 95,000 | $43,000 – $68,000 |
| Customer Support Representative | CAD 40,000 – CAD 55,000 | $29,000 – $40,000 |
| Administrative Assistant | CAD 42,000 – CAD 55,000 | $30,000 – $40,000 |
Technology jobs continue to offer the highest salaries in Canada and the U.S. However, the equivalent salary in the U.S. is generally lower. A software engineer in Canada is likely to make less than a software engineer in the United States.
Average salary in Canada by location
Where employees live and work can affect earnings and may have different employment laws to consider. That’s important information for employers trying to juggle the need for experienced talent with their budgets. You may seek talent in a different region if you know the average salary is lower or the laws are more favorable.
Canada has several major business hubs where salaries and the cost of living are typically higher. Bigger cities drive up the demand for housing. However, not everyone lives in a big city. With remote work, people could live in the suburbs or even rural areas. So, the average salary in Ontario, Canada, may be quite different from the average salary in a small town.
Here’s a breakdown of average salaries in Canada for larger markets:
- Toronto, Ontario, is Canada’s largest economic hub. Salaries are driven by major industries like finance and tech. The average salary in Toronto, Canada, is about CAD 70,000 – CAD 78,000 annually. While salaries are higher, so is the cost of living.
- Vancouver, British Columbia: CAD 68,000 – CAD 75,000
- Montreal, Quebec: CAD 60,000 – CAD 68,000
- Calgary, Alberta: CAD 70,000 – CAD 76,000
Salary variations affected by location are often due to the industries centered there. Toronto is known for tech. Calgary is known for the energy sector. Montreal is known for AI. Knowing these regional nuances can help you develop a better hiring strategy that finds the talent you need with salaries that make sense for your budget.
What is the minimum wage in Canada?
The federal minimum wage in Canada is CAD 17.75 per hour, and every employee should be paid at least this rate. However, each province or territory sets its own minimum wage. If the minimum wage in a province or territory is higher than the federal minimum wage, the employee gets paid the higher wage. Here’s a list of a few minimum wages in Canada:
- Ontario: CAD 17.60/hour
- British Columbia: CAD 17.85/hour
- Alberta: CAD 15.00/hour
- Nunavut: CAD 19.75/hour
Most of these rates also apply to “young workers,” which means employees between 15 and 24 years old. However, there are some exceptions for young student workers and specific occupations, depending on the jurisdiction in which the employee is working.
Why understanding salaries matters for global employers
Your company is expanding, and market success is important. That’s why you need a solid compensation strategy that respects average salaries in Canada. When you know the salary benchmarks, you have more leverage to:
- Offer competitive compensation packages that include vacation entitlements, bonuses, and equity, if applicable.
- Effectively budget for benefits and payroll costs.
- Build a credible reputation.
- Adhere to local laws and regulations.
The thing is, if you’re not a Canadian company, these details can get complex. That’s where an Employer of Record (EOR) comes in to help you hire compliantly in Canada while building your business. Working with an EOR can also prevent worker misclassifications, which can be costly if you don’t understand local laws about who is considered a contractor vs. an employee.
With salary alignment, you can mitigate potential legal and reputational risks.
FAQs
What is the average salary in Canada per month?
Based on the average salary in Canada of CAD68,000 – CAD72,000 annually, the average monthly salary is about CAD 5,700 – CAD 6,000.
What is the average salary in Toronto?
The average salary in Toronto, Canada, is about CAD 70,000 – CAD 78,000 annually, depending on industry.
What is a good salary in Canada for expats?
Expats typically earn more in major urban areas, where they could make CAD 80,000–CAD 100,000 or more. For cities like Toronto, a good salary that provides a comfortable lifestyle would be over CAD 100,000.
What is the average salary in Canada in USD?
The average salary in Canada of CAD 68,000 – CAD 72,000 annually would equal about $49,700–52,700 in the U.S.
How does a Canadian salary compare to a U.S. salary for similar roles?
Generally, average salaries in Canada are lower than U.S. salaries for the same roles. While some industries may be more closely aligned, others, like tech and finance, can see quite a large gap between Canadian and U.S. salary ranges.
Build your Canadian dream team
Canada is booming with amazing, skilled talent, and you don’t want to miss out. But before you start hiring, you must understand the unique regional variations that impact salaries, laws, taxes, and benefits.
These differences matter.
When you align your compensation with expected salary ranges and benefits, you’re more likely to attract great talent while managing global hiring costs.
If you’re ready to expand into Canada, you don’t want to wait around to figure out employment laws, benefits, payroll taxes, regulations, and salary comparisons. You want to start now.
With Pebl’s global employer of record services, you get all that (and more) streamlined. Whether you need to know what type of benefits to offer or what the payroll taxes are, Pebl makes global hiring and payroll a snap… no matter where they’re located.
Connect with us to see a demo and start building your global team today!
This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.
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