Price & cost

What does an hour of labour really cost?

The wage is only the start. Add vacation pay and the employer share of CPP, EI, and WSIB and an Ontario service role costs roughly 13–14% more than its base wage — before you price in holidays, benefits, supervision, or equipment.

Enter a base hourly wage to see the fully-loaded cost you should build into a government bid.

01The roleOntario · 2026
Ontario general minimum wage is $17.60/hr ($17.95 from Oct 1, 2026).
Your rate is set by class and claims history. Ontario 2026 average is 1.23%; janitorial/cleaning is rate group 631.
Awaiting a wage
Enter the base hourly wage to see the fully-loaded cost — what an hour of this role actually costs you to bid.
Ontario statutory labour costs · 2026
CostRateNotes
CPP — employer share5.95%To YMPE $74,600 (2026)
EI — employer share2.28%1.4× employee; to MIE $68,900
WSIB (Ontario average)1.23%Varies by class; cleaning = rate group 631
Vacation pay4% / 6%6% at 5+ years of service

Last verified 2026-06-21 · rates for 2026

Why the wage is never the cost

When you price a labour-based government contract — cleaning, security, grounds, facility services — the number that matters is what an hour of work actually costs you to deliver, not what you pay the worker. Every hour carries mandatory employer costs on top of the wage: vacation pay accrues on wages, and the employer pays its share of the Canada Pension Plan, Employment Insurance, and workplace-safety insurance. Miss these in your bid and they come straight out of your margin.

The statutory stack, in order

Vacation pay is 4% of wages for employees with less than five years of service and 6% at five years or more — and because it is part of wages, CPP, EI, and WSIB are calculated on the wage plus vacation. The employer CPP rate is 5.95% on pensionable earnings (2026 YMPE $74,600, after a $3,500 basic exemption). Employer EI is 1.4 times the employee rate — $2.28 per $100, or 2.28%, up to the 2026 maximum insurable earnings of $68,900. WSIB is your workplace-safety premium; the Ontario 2026 average is $1.23 per $100 of payroll, but your real rate depends on your class and claims history.

A worked example

Take the Ontario minimum wage of $17.60. Add 4% vacation ($0.70) and you are at $18.30. The employer CPP (5.95%), EI (2.28%), and WSIB (1.23%) on that $18.30 add about $0.71, $0.42, and $0.23 — roughly $2.06 of loading. The fully-loaded cost is about $19.36 per hour, or about 10% over the headline wage from statutory costs alone, before holidays and overhead. The calculator above runs this for any wage, vacation tier, and WSIB rate.

What this tool leaves out

This is a planning estimate of the mandatory statutory costs. A complete bid price also has to carry statutory holiday pay, overtime, any benefits or pension you offer, the Ontario employer health tax if your payroll exceeds the exemption, supervision, training, uniforms, equipment, supplies, and your margin. Use this number as the floor of your labour cost, then build up from it. It is guidance, not payroll or legal advice — confirm the current figures with CRA and WSIB.

Common questions

How do I calculate the fully-loaded cost of an employee?

Start with the base hourly wage, add vacation pay (4% or 6%), then add the employer share of CPP (5.95%), EI (2.28%), and WSIB (about 1.23% in Ontario on average). For a typical Ontario service role that adds roughly 13–14% on top of the wage before holidays, benefits, and overhead.

What is the labour burden rate in Ontario?

Labour burden is the cost of employing someone beyond their wage. In Ontario the mandatory statutory portion — vacation, CPP, EI, and WSIB — is about 13–14% of the base wage. With statutory holidays, benefits, supervision, and equipment, the true burden is higher.

Do CPP and EI have a maximum?

Yes. Employer CPP applies to pensionable earnings up to the 2026 YMPE of $74,600 (after a $3,500 basic exemption), and EI applies to insurable earnings up to the 2026 maximum of $68,900. For most hourly service roles, annual earnings sit below both ceilings, so the full rates apply.

What is WSIB rate group 631?

Rate group 631 is the long-standing classification for janitorial and building-cleaning services. Your actual WSIB premium depends on your class and individual claims experience; the Ontario 2026 average is $1.23 per $100 of insurable payroll.

Is this labour cost calculator free?

Yes, free and no signup. It gives a planning estimate for pricing a bid. Confirm the current rates with CRA and WSIB, and treat the result as guidance rather than payroll or legal advice.

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