Home → Guides → Salary vs. Hourly Pay
Salary or hourly changes how your pay is calculated — not how it’s taxed. Both go through the same federal tax, provincial tax, CPP, and EI deductions.
Key differences
| Salary | Hourly | |
|---|---|---|
| Pay basis | Fixed annual amount | Rate × hours worked |
| Pay varies with hours worked? | Usually no | Yes |
| Overtime eligibility | Often exempt (role-dependent) | Usually eligible |
| Typical for | Professional/management roles | Retail, trades, part-time roles |
Converting between the two
To compare a salaried offer against an hourly one, annualize the hourly rate: hourly wage × hours per week × 52. For example, $30/hour at 37.5 hours/week works out to $58,500/year — use our salary-to-hourly guide for the reverse calculation.
Calculate either way
+ Advanced options (overtime, bonus)
Independent estimate based on 2026 CRA federal/provincial payroll formulas, Revenu Québec figures, and published CPP/CPP2/QPP/QPP2, EI and QPIP rates. Not affiliated with the Canada Revenue Agency or the Government of Canada. Actual payroll may differ based on your employer’s specific deductions, benefits, TD1 claim amounts, and other factors. This tool does not constitute tax or financial advice.
Switch between “An annual salary” and “An hourly wage” in the calculator to model either scenario.
Related guides
Hourly Paycheck Calculator · How to Convert Salary to Hourly Wage · How Overtime Pay Works in Canada