People outside western countries have diverse idea about earnings in these countries; Salary in Canada for instance are always thought to be high, of which in some cases it is not always so.
After taxes and bills, the remaining of your earnings may not be as high as expected to cater for the lifestyle you want and your various responsibilities.
For a new immigrant, it is usually a struggle. But if you persevere and keep improving in all areas, you can rise and get high earnings. This is just to give you heads up of what you might experience and also to give our readers what our brothers and sisters abroad are passing through, so if they give you one shirt or little money, don’t grumble, just appreciate them. It is not as easy as you think.
Tax bracket in provinces are different, so deduction from your salary will vary.So Using Manitoba as our case study, we will look at the tax bracket of Manitoba
earnings per annum .
- Residents earning between 0 to 32,000 CAD(Canadian dollar) per annum will pay 10.8% of the income as tax.
- Any resident earning between 32,000 – 70,000 CAD per annum will pay 12.75% of the income as tax
- Earnings above 70,000 CAD per annum will pay 17.4% of the income as tax
- Earnings between 46,000 CAD and below will pay 15% of the income as tax.
- Any residents earning between 46000 to 93,000 CAD per annum will pay 22.5% of the income as tax.
- Residents earning between 93,000 to 144,000 per annum will pay 26% of the income as tax.
- Residents earning between 144,000 CAD to 205,000 will pay 29% of the income as tax.
- Income between 205,000 and above will pay 33% of the income as tax.
This above illustration is to give your heads up about salary in Canada deductions to know what to expect when you get your first salary.
If you are earning 20 CAD per hour in Manitoba for instance as a new immigrant, you fall in the second category, 27.75% will be deducted from your salary.
Assuming 20 CAD gives you 3000 per month and they pay bi weekly, that means you have 1500 CAD every two weeks.
Now lets break it down, if you are working in a unionized company, you will pay probably 20 CAD union fee, leaving you with taxable 1480 CAD. Federal tax is 131.25 CAD, provincial tax is 114.07, altogether 245.30CAD is taken from 1480 CAD. Leaving you with 1235 CAD.
Canadian pension plan (CPP) will compulsorily deduct 69.93 CAD at the end of the month.
So at the end of the week a total of 359.23 CAD had been deducted from your money leaving you with 1140.77 CAD.
Therefore your income in a month is roughly 2281.54 CAD.
At 20 CAD per hour , almost 800 CAD has been deducted from your monthly take home pay . This determines how you live your life, you still have to pay rents, bills and food.