Report scores 192 countries, territories on employer social contributions and statutory severance and notice periods
A new global index shows Canada's statutory cost to employ a worker is nearly identical to the United States, despite Canada ranking far higher on overall employer burden.
The Global Employer Burden Index 2026, published by Employ Borderless, scores 192 countries and territories on employer social contributions, statutory severance, and statutory notice periods.
Canada ranks 109th of 192 with a composite score of 37, while the United States ranks 158th with a score of 14.
Despite that gap, the dollar figures are close. Employ Borderless calculates that a $50,000 salary costs employers about $54,800 annually in Canada once mandatory contributions are added, against roughly $54,000 in the United States — a difference of just $800.
Employer social security contributions stand at 9.6% in Canada versus 8.1% in the U.S., according to the report. Employee-side contributions run higher in the U.S., at 7.7% versus 6.8% in Canada.
Severance and notice rules account for the difference
Canada mandates roughly five weeks of statutory severance and five weeks of statutory notice. The United States has no federal requirement for either. Employ Borderless states: "In the US: no federal statutory severance or notice, and ~8% in contributions."
Canada's statutory annual leave minimum is 10 days, compared with no federal minimum in the United States. The report also lists Canada's statutory maternity leave at 16 weeks, versus zero at the U.S. federal level.
These obligations shape termination budgets and workforce restructuring timelines. A Canadian employer conducting layoffs carries a statutory notice-and-severance floor that a U.S. employer, absent contract or company policy, does not, a distinction relevant to HR teams coordinating binational workforce reductions with legal and finance departments.
World's lightest burdens
Employ Borderless found that Canada and the U.S. belong to a broader pattern among English-speaking economies. Four of six major Anglosphere countries scored fall in the lighter half of the index: the United Kingdom (85th), Ireland (94th), Australia (103rd), and Canada (109th), alongside the U.S. (158th) and New Zealand (163rd).
Argentina ranks as the heaviest jurisdiction globally, with a composite score of 86 and an estimated $69,500 cost for a $50,000 hire once contributions and mandatory 13th-month pay are included. New Zealand ranks lightest overall, with a composite score of 4.
Europe carries the heaviest average regional burden, at 51.7 on the composite scale across 47 scored countries, compared with 29.1 for Oceania, the lightest region. Separately, 38 countries and territories impose no statutory severance requirement at all, according to the index.
