Hourly to Salary Calculator Canada 2026

How do you convert an hourly wage to an annual salary?

<strong>Multiply your hourly rate by your weekly hours, then multiply by the number of working weeks per year.</strong> The standard formula is: hourly rate x hours per week x 52 weeks = gross annual salary. For a $25/hour wage at 40 hours per week, that gives $52,000 per year before taxes.

This formula assumes you work every week of the year. If you take unpaid vacation, subtract those weeks first. Two weeks of unpaid vacation means 50 working weeks instead of 52, which reduces the $25/hour example from $52,000 to $50,000.

Paid statutory holidays add income on top of your regular weekly pay. The number of statutory holidays varies by province, ranging from 6 in Nova Scotia to 14 in Newfoundland and Labrador. Each paid holiday adds one day's pay (your daily hours multiplied by your hourly rate) to your annual total.

If you work more than the overtime threshold in your province, those extra hours are paid at 1.5 times your regular rate. In Ontario, for example, overtime starts after 44 hours per week. Working 48 hours at $25/hour means 44 regular hours ($1,100) plus 4 overtime hours at $37.50/hour ($150), totalling $1,250 per week.

What is the minimum wage in each Canadian province in 2026?

<strong>Canadian minimum wages in 2026 range from $15.00/hour in Alberta to $19.75/hour in Nunavut.</strong> The federal minimum wage for federally regulated workers is $18.15/hour as of April 1, 2026. Each province and territory sets its own rate for provincially regulated workers.

Several provinces increased their minimum wage on April 1, 2026. British Columbia rises to $18.25/hour (effective June 1), Yukon to $18.51/hour, Prince Edward Island to $17.00/hour, New Brunswick to $15.90/hour, and Newfoundland and Labrador to $16.35/hour. Ontario is scheduled to increase to $17.95/hour on October 1, 2026.

Alberta has not increased its minimum wage since 2018, when it was set at $15.00/hour. At 40 hours per week for 52 weeks, the Alberta minimum wage produces an annual salary of $31,200, the lowest full-time minimum in Canada.

How does overtime work in Canada?

<strong>Most Canadian provinces pay overtime at 1.5 times the regular hourly rate for hours worked beyond a weekly threshold.</strong> The threshold is 40 hours per week in most provinces, but Ontario and New Brunswick use 44 hours, while Nova Scotia and Prince Edward Island use 48 hours.

British Columbia also has a daily overtime rule: employees earn 1.5x after 8 hours in a single day and 2x after 12 hours, regardless of total weekly hours. This is unique among provinces. The calculator uses the weekly threshold for simplicity.

Certain employees are exempt from overtime rules, including managers, supervisors, and some professionals. The Canada Labour Code governs overtime for federally regulated workers (banks, telecommunications, interprovincial transportation), setting the threshold at 40 hours per week.

Overtime pay can significantly increase your effective hourly rate. If you earn $30/hour and work 50 hours per week in Ontario (44h threshold), your 6 overtime hours are paid at $45/hour. That works out to an effective rate of $31.80/hour across all 50 hours.

How many paid statutory holidays are there in Canada?

<strong>The number of paid statutory holidays ranges from 6 in Nova Scotia to 14 in Newfoundland and Labrador.</strong> Every province recognizes New Year's Day, Good Friday, Canada Day, Labour Day, and Christmas Day. Beyond these five, provinces add their own holidays like Family Day, Victoria Day, Thanksgiving, and Remembrance Day.

Ontario has 9 statutory holidays: New Year's Day, Family Day, Good Friday, Victoria Day, Canada Day, Labour Day, Thanksgiving, Christmas Day, and Boxing Day. British Columbia has 11, including BC Day (first Monday in August) and the National Day for Truth and Reconciliation (September 30).

Quebec recognizes 8 statutory holidays but calls them "jours feries." Quebec is the only province with the Saint-Jean-Baptiste Day (June 24) as a statutory holiday, which replaces Victoria Day.

Paid statutory holidays effectively add to your annual income if you are an hourly worker. Each holiday pays you for a standard day's work without requiring you to be on the job. For a $25/hour worker at 8 hours/day, 9 statutory holidays add $1,800 to the annual total.

How much will you take home after tax?

<strong>A $25/hour full-time worker in Ontario earning about $52,000/year takes home approximately $41,500 after federal tax, provincial tax, CPP, and EI.</strong> The exact amount depends on your province, deductions, and contribution room.

The calculator provides simplified after-tax estimates using 2026 federal and provincial tax brackets. These include Canada Pension Plan (CPP) contributions at 5.95% on pensionable earnings between $3,500 and $74,600, and Employment Insurance (EI) premiums at 1.63% on insurable earnings up to $68,900.

Provinces with lower income taxes (Alberta, Nunavut, Northwest Territories) produce higher take-home pay on the same gross salary. Quebec has the highest combined marginal tax rates in Canada but also provides more public services funded by those taxes.

For a more detailed after-tax breakdown including RRSP deductions, marginal tax rates, and provincial comparisons, use our <a href='/en/resources/tools/borrowers/canada/take-home-pay-calculator'>Take-Home Pay Calculator</a>.

Worked example: $30/hour in Ontario

Suppose you earn $30/hour, work 40 hours per week in Ontario, take 2 weeks of unpaid vacation, and receive 9 paid statutory holidays. Here is how the conversion works step by step.

<strong>Step 1: Calculate base annual pay.</strong> $30/hour x 40 hours/week x 50 working weeks = $60,000.

<strong>Step 2: Add statutory holiday pay.</strong> 9 holidays x 8 hours/day x $30/hour = $2,160.

<strong>Step 3: Total gross annual salary.</strong> $60,000 + $2,160 = $62,160 per year.

<strong>Step 4: Convert to other periods.</strong> Monthly: $62,160 / 12 = $5,180. Biweekly: $62,160 / 26 = $2,391. Weekly: $62,160 / 52 = $1,195. Daily: $1,195 / 5 = $239.

<strong>Step 5: Estimate after-tax income.</strong> At $62,160 gross in Ontario, estimated total deductions (federal tax, provincial tax, CPP, EI) are approximately $14,200. Estimated after-tax annual income: $47,960, or about $3,997/month.

Is it better to be paid hourly or salary in Canada?

<strong>Neither is universally better; it depends on your work pattern, benefits, and financial goals.</strong> Hourly workers earn overtime premiums when they exceed the provincial threshold, while salaried workers typically do not receive overtime regardless of hours worked.

Salaried positions often include benefits such as health insurance, pension matching, paid vacation, and job stability that hourly positions may not. When comparing job offers, consider the total compensation package, not just the base rate or salary figure.

For budgeting purposes, converting between hourly and salary helps you compare offers across different pay structures. A $30/hour job with no paid vacation or benefits may be worth less than a $58,000 salaried position with 3 weeks paid vacation and employer pension contributions.