Employee cost calculator for Ontario

A new hire in Ontario costs more than their pay. On top of wages you pay the employer share of CPP and EI, WSIB premiums, Employer Health Tax once your payroll passes $1 million, benefits, equipment and the cost of hiring. You also pay for vacation, public holidays and sick days when no work gets done. Enter the job below to see the full yearly cost and the cost of each hour actually worked.

What does this hire really cost?

Example figures are filled in. Replace them with your own.

Pay

PaidBy the hourA yearly salaryPay rate (hourly, or yearly salary)$Paid hours a weekhours

Time off

Weeks of vacationweeksOntario minimum: 2 weeks, 3 after 5 years.Public holidaysdaysOntario has 9.Sick days you expect to pay for or losedays

Employer costs

WSIB premium rate per $100 of payrollper $100From your WSIB account; it depends on your industry class.Total Ontario payroll$1 million or less (no Employer Health Tax)Over $1 million (1.95% Employer Health Tax)Benefits a year$Equipment, software and training a year$

Hiring

Cost to hire (ads, interviews, onboarding)$Years you expect them to stayyearsAgency rate per hour to compare (optional)$

Your estimate

Request candidates

Estimates only, using 2026 rates. Check the figures for your business.

What goes into the cost of an employee in Ontario

1. Pay. Hourly rate times paid hours for 52 weeks, or the yearly salary. Vacation pay and public holiday pay are inside this figure.
2. CPP. In 2026 the employer matches 5.95% of pay between $3,500 and $74,600, plus 4% on pay between $74,600 and $85,000.
3. EI. The employer pays 1.4 times the employee's rate: 2.282% of insurable pay up to $68,900 in 2026.
4. WSIB. Your premium rate per $100 of insurable earnings, which depends on your industry class, up to $121,700 of pay per worker in 2026.
5. Employer Health Tax. Most private employers in Ontario pay nothing on the first $1 million of total payroll. Above that the rate is 1.95%.
6. Benefits, equipment and hiring. Health and dental plans, a computer or uniform, software, training, and the cost of advertising and interviewing, spread over the years you expect the person to stay.

The rates come from the CRA's 2026 payroll figures, the Ontario Ministry of Finance and the WSIB.

Why cost per hour worked matters

An employee paid for 2,080 hours a year does not work 2,080 hours. Take out two weeks of vacation, nine public holidays and a few sick days and a full-time hire works closer to 1,900 hours. Dividing the full cost by the hours actually worked gives a fair number to compare with overtime, a part-time hire or an agency rate, because an agency bills only for hours worked.

Ontario rules built into the defaults

• Vacation: at least two weeks a year, rising to three weeks after five years with the same employer.
• Public holidays: nine a year under the Employment Standards Act.
• Sick days: three unpaid job-protected days a year. Many employers pay them anyway; enter the days you expect to pay for or lose.

Common questions

How much does an employee really cost in Ontario?

Usually 15% to 30% more than their pay once you add CPP, EI, WSIB, benefits, equipment and hiring costs. The exact figure depends on the pay level, your WSIB class and the benefits you offer.

What are the employer CPP and EI rates for 2026?

CPP: 5.95% of pay between $3,500 and $74,600, plus 4% on pay from $74,600 to $85,000. EI: 2.282% of insurable earnings up to $68,900, which is 1.4 times the employee rate of 1.63%.

Do I pay Employer Health Tax on a small payroll?

Not if you are an eligible private employer with total Ontario payroll of $1 million or less. Associated employers share the exemption.

Related

An empty seat costs money too. Try the cost of a vacancy calculator, or read about hiring staff through Staffira.

Estimates use 2026 CRA, Ontario and WSIB figures and the numbers you enter. They are general information, not payroll, tax or legal advice. Check rates for your business with your accountant or payroll provider.