If you only budget the hourly wage, you are undercounting labour in Canada.
Employer CPP and EI contributions add real cost that should be included in menu pricing and staffing decisions. This calculator turns those inputs into a loaded labour cost you can use for margin checks and roster planning.
Quick Summary
- Loaded labour cost = base wage + employer CPP + employer EI + other on-costs.
- Federal minimum wage is C$17.75/hour (effective 2025-04-01).
- Employer CPP rate is 5.95% in 2026 (half of 11.9%).
- Employer EI rate is 2.28% in 2026 (1.4x the employee rate).
Canada Wage Floor Snapshot
The federal minimum wage applies to federally regulated workplaces. Most restaurants are provincially regulated, so check your provincial rate if it is higher.
| Item | Rate | Notes |
|---|---|---|
| Federal minimum wage | C$17.75/hour | Effective 2025-04-01 |
Payroll Add-Ons (Employer Side)
CPP and EI are employer costs. Add them to the base wage to get a loaded hourly rate.
| Item | Rate | Notes |
|---|---|---|
| CPP contribution rate | 11.9% total | Employer share is 5.95% in 2026 |
| EI premium rate | 1.63% employee | Employer rate is 2.28% in 2026 |
If you operate in Quebec, apply the province-specific EI and payroll settings in your model.
Canada Labour Cost Calculator (Hourly)
Use this formula for an hourly role:
Loaded hourly cost = Base wage x (1 + CPP employer rate + EI employer rate + other on-costs)If you provide benefits, add them as a per-hour cost and include them in the loaded total.
Example: C$18.50/Hour Line Cook
Assume:
- Base wage: C$18.50
- CPP employer rate: 5.95%
- EI employer rate: 2.28%
Loaded hourly cost = 18.50 x (1 + 0.0595 + 0.0228)
= C$20.02/hourAt 8 hours per day:
C$20.02 x 8 = C$160.18/dayTurn Labour Cost Into Menu Pricing
Convert your loaded hourly cost to a cost per minute, then multiply by labour minutes per dish.
Labour cost per dish = (Loaded hourly cost / 60) x Labour minutesExample:
- Loaded hourly cost: C$20.02
- Labour minutes: 8
(C$20.02 / 60) x 8 = C$2.67 per dishAdd this to your food cost per dish when checking margin.
Local Scenario: Toronto Core vs Calgary Suburban Mix
| Trading context | Typical pressure | Practical move |
|---|---|---|
| Toronto downtown lunch-heavy operation | Wage spend compresses into short peak windows | Track labour minutes for top lunch SKUs and tighten prep sequencing before adding staff |
| Calgary suburban dinner-heavy operation | Lower lunch volume, larger evening baskets | Split staffing by daypart and protect margin with dinner bundle workflow |
Set Targets Using Prime Cost
Prime cost is food + labour.
If your prime cost target is 60% and your food cost target is 30%, your labour target is 30%.
Target labour % = Target prime cost % - Target food cost %Weekly and Monthly Routine
Weekly
- Compare scheduled vs actual hours.
- Watch overtime creep.
- Check labour minutes on top sellers.
Monthly
- Update loaded hourly cost per role.
- Review labour % by daypart.
- Flag items where labour + food exceeds target.
Common Mistakes
- Using base wage without CPP and EI.
- Ignoring provincial minimum wage changes.
- Pricing only by food cost.
- Forgetting benefits and allowances.
Related Guides
- Canada Menu Pricing Guide
- Canada Menu Pricing Calculator
- Canada Food Cost Calculator
- Canada GST/HST Restaurant Pricing Guide
- Canada Tips vs Service Charges Guide
- Restaurant Labor Cost Percentage Guide
- Prime Cost Guide
Want This Done Automatically?
KitchenCost recalculates recipe costs, food cost %, and price targets as your ingredient prices change.
If you want a faster way to protect margin, try KitchenCost.