Financial Considerations

• Costs Before Coming to Canada
• Earnings in Canada
• Costs While Living in Canada

Moving to a new country can be expensive, even if it’s just a temporary move. There are costs for a visa application, travel, and to the immigration consultant if you have hired a representative. Once you arrive, you may have to pay for housing, buy furniture, buy a bus pass and other daily expenses. You may also have to pay for your return flight once you have completed your stay in Canada. 

It is important to learn ahead of time what costs you will be responsible for and which may be covered by your employer. You should also learn about the cost of living in BC, as well as how much you will be earning while in your job. Once you have a clear idea of your expected earnings and expenses, you can make a better decision about whether working in BC is right for you.

Services provided by the employer will vary depending on your contract. Ask your employer or your employer’s representative which expenses are covered by your employer and which you have to pay yourself.

Costs Before Coming to Canada

Finding a Job

You do not have to pay to find a job or to be hired in Canada. Even if you request the services of a Recruiter or Employment Agency, these agencies can NOT charge you for help in looking for a job, getting information about a job, being put in contact with an employer, or being hired for a job.

An employer must not request or receive payment from a person in return for hiring them.

Employment Agencies can charge job seekers for other services that can help you get hired in a job -- such as training courses or resume writing.

If you do hire a representative to help you find work or apply for a work permit, you should learn about all their fees to determine how much it will cost you. Learn more about using a recruiter.

Applying for a Visa

The only costs connected with the Temporary Foreign Worker Program are the fees required for an application for a visa and work permit to work in Canada. In addition to the application fee, you may also have to pay fees to get the documents required for the application -- such as a passport, or a police certificate, as well as any courier fees or medical fees if a medical examination is required.

Fees for temporary resident visas and work permits are posted on the CIC web site.

Travel Costs

If you are coming to work in a skilled trade, you may be responsible for your travel costs to Canada. If you are coming to work in a low or semi-skilled occupation, your employer is required to pay for your travel costs to and from Canada. BC is a large province and if your job is located far from a big city such as Vancouver, there may be additional travel expenses to take another plane or a bus to reach your final destination.

Canada defines lower-skilled occupations as occupations listed in the C & D categories of the National Occupation Classification. Find out which occupations are classified in C & D, according to Canada’s national occupation classification.

Back to Top

 

Earnings in Canada

Your contract will state how much your earnings will be. This should be stated either as an hourly, daily, weekly, or monthly rate. Your contract will also state the hours you are expected to work. You are entitled to overtime pay if you work more than this.

The salary stated on your contract is your gross earnings and does not include any deductions. Your employer is required to make deductions to your salary such as income tax and employment insurance. There may also be extra deductions such as union fees and health care.

There are two general rules. The first is that if a court says a deduction is allowable, your employer can typically take the money off your cheque. The second is that if the deduction somehow benefits the employee, then the deduction is eligible. However, in this case the employer must tell you of the deductions, and you must give your permission to have the money removed. The employer should include any intended deduction in the employment contract prior to the employee starting work.

As a TFW, there are certain items that cannot be deducted from your pay cheque. 

Employers cannot deduct any money spent to recruit or select you, or any of their costs associated with using a recruiter or employment broker. If you are part of the pilot program for occupations requiring lower levels of formal training, your employer cannot deduct any of your travel costs.

Foreigners are often surprised to learn how much of their salary is deducted so it is important that you are aware of this before coming to Canada. Deductions from your pay check can be 25 per cent or more of your gross earnings.

Payroll Deductions – Every employee in Canada has deductions taken off their pay by the employer and some of these will apply to you as a temporary worker. Some deductions (such as Canada Pension Plan(CPP) and Employment Insurance (EI) are regular, and some are special or unique to each person (e.g. RRSP, union dues, charitable donations)).  BC labour standards determine what deductions are allowed and which are not allowed. Any concerns can be directed to the BC Employment Standards Branch.

Standard Deductions – Every worker in Canada has standard deductions from their wages. These include federal and provincial taxes, Employment Insurance (EI), and Canada Pension Plan (CPP) or Régie de rentes du Québec in Québec. 

Federal and provincial taxes are paid by each person living and working in Canada.  

Employment Insurance provides temporary financial assistance for unemployed workers (regular benefits) and those who are sick, pregnant or caring for a newborn or adopted child. It also assists workers who are providing care or support to a family member who is seriously ill with a significant risk of death. Regular and sickness benefits can usually only be collected while workers are in Canada, and since TFWs typically leave Canada they are ineligible to collect these benefits. Other benefits may be collected when workers are inside or outside of Canada. Regardless of the type of benefit, TFWs must meet the same eligibility requirements as Canadians and permanent residents to qualify. For more information, visit the HRSDC site.

Canada Pension Plan (CPP) and Régie de rentes du Québec both provide workers (who make contributions) with a reliable pension that can be augmented by other pensions or their personal retirement savings. It is important to remember that both of these programs are designed to support workers who contribute to the plan. Even after you leave Canada, you can still apply for your retirement funds when you become eligible. Contact the Canada Pension Plan for more information. 

Non-Standard Deductions – Union dues, charitable donations and other non-standard deductions may be taken from your paycheque.

Read more >>

Back to Top

 

Costs While Living in Canada

Costs for goods and services in Canada can be very different from other parts of the world.  It is important that you have an understanding of how much your day-to-day costs in Canada may be (e.g. your rent, food, transportation and entertainment) as this will affect the savings you can expect.

Learn more about the costs of living in major cities across Canada compared to the rest of the world.

Other costs relating to getting settled and living from day to day are described in the BC Newcomers Guide to Resources and Services.

Learn more about budgeting for life in BC

Food and Accommodation

Even though employers may help TFWs find accommodation upon arrival or provide housing or accommodation at the work site, TFWs are responsible for the cost of their own accommodation and food.  Costs for accommodation will depend on where in the province you are living as well as how you are living; living in an apartment by yourself will generally cost more than sharing a house with others, for example.

If your employer does provide housing for you, that employer must state clearly how much you are being charged for accommodation. You do not have to remain in the accommodation your employer provides.

While lunchtime meals may be provided at your place of employment, typically it is you (the employee) who has to pay for this service. TFWs should expect to pay for all of their food costs while in Canada.

Health Care

As a temporary resident in BC you are entitled to provincial health care coverage. This will cover basic medical expenses such as visits to the doctor or hospital, but does not cover all costs. Costs that are not covered include optometrist, dental work, and ambulance costs in case of emergency.

You must be living in BC for three months before you are covered by the provincial health insurance plan. You may want to seek private insurance before coming to Canada to cover you for your first three months in the province.

If you are coming to work in a trade that requires less formal training, the employer is required to provide you with healthcare coverage until you are eligible for the provincial health care plan.

Public Transportation

Getting around in BC is fairly easy. Most cities have buses, taxis and trains that connect you within BC, to the rest of Canada or the U.S., and beyond.  BC also has floatplanes and ferries that travel to various islands and coastal cities. Typical costs for public transportation within cities range from $2-$4. Costs for transportation between cities in BC may be much higher.

Read more >>

There is more information about transportation in the British Columbia Newcomers Guide online book.

Occasional Expenses

Occasional expenses are bills that do not need to be paid regularly, but are still important. You will probably have larger occasional expenses when you first arrive as you may need to buy furniture, winter clothes, and other items when you arrive.

Some examples of occasional expenses you may have are:

• prescription glasses or eyewear
• dental work
• winter clothing
• furniture and household items
• long-distance calls to friends and family in your home country
• ferry, bus and train fares
• entertainment