About Salaries in Canada

The first few months will almost feel like a robbery cos what in God’s name are these deductions?

Author

Oluwaseye Adesina
August 11, 2024

Hello, new local👋

In Today’s Newsletter

  • What to know about your income in Canada

  • Make smart money choices with Dollarwise

  • 100+ Immigrants landed a job with this service

  • These companies are hiring!

Hi hi!

How are you doing on this beautiful Sunday? Resting, I hope ‘cos Monday’s about to hit you like a ton of bricks. 

Now if you're reading this and you recently moved here or are still a temp worker, I’m going to let you in on some basic but life-saving tips on how salaries work in Canada. [Okay maybe not life-saving but definitely! Pocket-Saving.]

  1. The money grows but not like grass

    Most employers here pay salaries bi-weekly. Sweet right? Don't get too excited cos, there is often a two-week delay in receiving your pay. So basically, if you’re starting a new job, you may need to wait up to a month for your first paycheque. Once you start getting paid, it will typically continue every two weeks, with your final pay arriving two weeks after you stop working.

  2. 80k PA is like 2k Per month after plenty of deductions 

    Your gross pay will have several standard recurring deductions. The first few months will almost feel like a robbery ‘cos what in God’s name are these deductions?

    • Federal and Provincial Income Tax: These are combined into one deduction and vary depending on your income and province.

    • Canada Pension Plan (CPP): Both residents and non-residents contribute to CPP. This pension plan will pay you upon retirement, starting as early as age 60. You will need to contact CPP with your Social Insurance Number (SIN) and address to receive the benefits.

    • Employment Insurance (EI): Contributions to EI provide temporary financial assistance if you lose your job or are unable to work.

Your employers may decide to include additional deductions for benefits like:

  • Company Pension Plan: Some employers offer their pension plans.

  • Union Dues: If you belong to a union, dues will be deducted from your pay [And in the spirit of networking, you most likely will need to join a Union]

  • Extended Medical Benefits: Contributions towards health insurance plans provided by your employer.

How to Avoid Double Taxation

If you are from a country with a tax treaty with Canada, like  Australia, you might be eligible to avoid being taxed twice on your salary in Canada. Get familiar with these treaties and understand how they apply to you. For example, The Canada-Australia tax treaty outlines specific rules to prevent double taxation and provide relief for taxes paid in the other country.

Ultimately

As an Immigrant worker, you want to dig in and stuff your face with information about your finances. And don’t fly blind. You can subscribe to platforms like Dollarwise to access data-driven support on your finances.

You work so hard already, don’t get shortchange just ‘cos you don’t understand the money culture of this country. 

MAKE SMART MONEY, DATA-DRIVEN CHOICES IN CANADA WITH DOLLARWISE!!!

The most important thing you can do for yourself in Canada as a newbie is to get your money right. Dollarwise provides insightful and data-driven strategies to navigate the Canadian economic system.

And guess what? It’s free!

100+ IMMIGRANTS HAVE LANDED A NEW JOB WITH THIS SERVICE

Stop winging it.

The NewLocal Job Search Toolkit is your one-stop shop for success in the Canadian workforce. We understand the unique challenges new immigrants face, and this toolkit is designed to bridge the gap between your international experience and Canadian opportunities.

You can click here to read more about it OR

TEA O’CLOCK

INSPIRE ✨

“After I was done with elementary school, I ended up in the village again because my grandfather couldn’t afford a better high school in the city for me…. For this reason, in 2016, I authored a motivational memoir called Stand Up, Stand Out & Be Confident”.

Henry Agassi, originally from a small village in Africa, overcame immense challenges to immigrate to Canada, where he pursued higher education and now dedicates his life to mentoring youth and inspiring immigrants to chase their dreams.

COMMUNITY CORNER 🔗

Transitioning into Canadian professional life comes with its fair share of surprises. From workplace customs to everyday interactions, the cultural journey is full of eye-opening moments. As people who have navigated the rollercoaster of cultural transitions, we know firsthand how impactful those 'aha' moments can be.

We are eager to learn about your own experiences – the good, the bad, the unexpected, and the downright hilarious! Reach out to us below 👇

LOOK WHO’S HIRING! 💼

HERE’S WHAT’S UP 🤝

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