What rules concern the base salary in Canada?

When issuing employee payroll in Canada, the base salary is the fixed gross amount that the employer guarantees to pay the employee monthly before deductions for income tax and social security contributions. The base salary may also include additional allowances provided by the employer. When an employee’s start date is not on the first of the month, the base salary will be pro-rated for the first month and issued at the full base salary level every month thereafter.   

The base salary offered to an employee must meet Canada’s minimum wage rules for the individual's work location. Otherwise, companies are free to offer any amount they see fit for the position. To attract and retain employees, it is in your company’s best interest to offer a competitive salary that matches the employee’s skills, experience, and expected contribution.    

If you have questions about payroll regulations and procedures in Canada, please get in touch with our team today! 

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