Hourly to Salary Converter

Working Hours, Statutory Holidays, and Salary Conversion in Canada

Converting between hourly wages and annual salary requires understanding how many hours Canadians actually work per year. The standard full-time position is 37.5 to 40 hours per week. A full-time year is paid on 2,080 hours at 40 hours a week (1,950 at 37.5) because vacation and statutory holidays are paid time off: every jurisdiction requires at least two weeks of paid vacation (4% vacation pay), rising to three weeks after a few years of service in most provinces. The hours actually worked are lower — 40 × 50 weeks is 2,000, less the 6 to 11 paid statutory holidays a province grants (10 in federally regulated workplaces).

When comparing hourly and salaried positions, the total compensation package matters beyond the headline number. Salaried employees typically receive benefits such as extended health and dental coverage, pension contributions, paid sick days, and sometimes profit sharing or bonuses. An hourly worker earning $30/hour with no benefits may need $35–$38/hour to match the total compensation of a salaried employee at $62,400 (equivalent to $30/hour at 40 hours per week). Conversely, hourly workers may earn overtime premiums that salaried employees do not.

Statutory Holidays by Jurisdiction (2026)

For freelancers and contractors, the hourly-to-salary conversion must also account for the absence of employer-paid benefits. Self-employed individuals pay both the employee and employer portions of CPP (totalling 11.9% of pensionable earnings in 2026), receive no paid vacation or holidays, and must fund their own health benefits and retirement savings. A common guideline is that an independent contractor should charge 30–50% above the equivalent hourly employee rate to maintain the same after-expense income.