Canada suits U.S. companies that need people working U.S. hours: most of Canada shares a U.S. time zone, while the United Kingdom is five hours ahead of Eastern time and eight ahead of Pacific. The UK suits companies that want a base for European customers or coverage before the U.S. day starts. Employer costs on top of salary are generally higher in the UK.
Published November 22, 2025 · Updated November 6, 2026
In the UK, an employer pays 15% National Insurance on each employee's earnings above £5,000 a year, plus at least 3% pension contributions on earnings between £6,240 and £50,270. In Canada, outside Québec, employer CPP, CPP2 and EI contributions stop at yearly maximums, about C$6,200 per employee in 2026.
What changes for a U.S. company employing someone in each country.
| Canada | United Kingdom | |
|---|---|---|
| Time difference from the U.S. | None: Canada spans the same Pacific-to-Atlantic time zones as the U.S. (Newfoundland is half an hour ahead of Atlantic) | Five hours ahead of U.S. Eastern time and eight ahead of Pacific; one hour less for a few weeks each spring and fall, when the two countries change their clocks on different dates |
| Employer contributions on top of salary | CPP (5.95%), CPP2 (4%) and EI (1.4 times the employee premium), each up to a yearly maximum: at most about C$6,200 per employee in 2026, outside Québec. Workers' compensation, and employer health tax in some provinces, are extra | 15% National Insurance above £5,000 a year, plus at least 3% pension on earnings from £6,240 to £50,270 (2026–27) |
| Minimum paid leave | At least two weeks a year in most provinces, rising with service, plus provincial statutory holidays | 28 days (5.6 weeks) for a five-day week, which can include public holidays |
| Notice to end employment | Notice or pay in lieu set by the province (in Ontario, one week per year of service, up to eight), and courts often award more | At least one week after one month of service, then one week per full year from 2 to 12 years, up to 12 weeks |
| Legal system | Common law (civil law in Québec), with employment rules set mainly by each province | Common law in England, Wales and Northern Ireland; Scotland has a mixed system |
| Working language | English, and French in Québec | English |
Canadian figures use the CRA's 2026 rates; UK figures use GOV.UK's 2026–27 rates. Sources are listed at the end of this page.
For most U.S. companies the deciding factor is working hours, then the cost on top of salary.
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InfraDev employs people in Canada, not the UK. If Canada fits the role, we will confirm the cost and timing on a short call.