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Prince Edward Island

Global Coverage > Canada > Prince Edward Island

Employment in Prince Edward Island

Updated on: April 1, 2025

Currency

Canadian Dollar (CAD)

Employer Taxes

N/A

Payroll Frequency

Bi-weekly or semi-monthly

Language

English, some French

Date Format

YYYY/MM/DD

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Prince Edward Island By The Numbers

160,000

Population

$7 billion

GDP

12

National Holidays

Province Information

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Weekly Working Hours
National Holidays
Leave
Employment Contracts
Types of Employment
Employment Costs
IC Class Factors
Labor Leasing
Minimum Wage Requirements
Medical Benefits
Probationary Periods
Termination Notice
Severance
Pre-hire Checks
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Weekly Working Hours

48 hours, overtime > 48 hours/week

National Holidays

  • New Year’s Day – January 1
  • Good Friday – Friday before Easter Sunday
  • Easter Monday – Monday after Easter Sunday (not a statutory holiday in all provinces)
  • Victoria Day – Monday preceding May 25
  • Canada Day – July 1
  • Civic Holiday – First Monday in August (not a statutory holiday in all provinces)
  • Labour Day – First Monday in September
  • Thanksgiving Day – Second Monday in October
  • Remembrance Day – November 11 (statutory in some provinces)
  • Christmas Day – December 25
  • Boxing Day – December 26 (not a statutory holiday in all provinces)

Leave

Paid General Holidays: 8 days (e.g., New Year’s Day, Canada Day, etc.)
Vacation: 2 weeks after 1 year (4% of wages), 3 weeks after 8 years (6%)

Employment Contracts

No, but they are highly recommended to address locally mandated issues

Types of Employment

Employees and Independent Contractors

Employment Costs

In Prince Edward Island (PEI), Canada, employers incur several costs for each employee beyond the base salary. These costs include:
  1. Canada Pension Plan (CPP) Contributions: Employers are required to match the CPP contributions made by employees. The contribution rate and maximum pensionable earnings are set annually by the Canada Revenue Agency (CRA). For detailed rates and thresholds, refer to the CRA’s Payroll Deductions Tables.
  2. Employment Insurance (EI) Premiums: Employers must contribute to EI at a rate of 1.4 times the employee’s contribution. The specific rates and maximum insurable earnings are also provided in the CRA’s Payroll Deductions Tables.
  3. Workers Compensation Assessments: Employers in PEI are required to pay assessments to the Workers Compensation Board (WCB). These rates are calculated per $100 of assessable payroll and vary depending on the industry classification. The Maximum Assessable Earnings (MAE) for 2025 is $82,900. For more information, visit the WCB’s Assessment Rates page.

IC Class Factors

Independent Contractor (IC) classification factors include the following:  Degree of control of worker; Provision of own tools; Financial risk in own business; Responsibility for hired workers; Chance for profit; Degree of integration into the client’s work flow; Intent of the parties; Written contract

Labor Leasing

Labour Leasing: No specific provisions, but staffing agencies must adhere to employment standards and protect workers’ rights.

Minimum Wage Requirements

$15.40

Medical Benefits

Each province manages its own medical plan.  No mandatory medical benefits; must comply with employment agreements.

Probationary Periods

6 months, No termination notice required within the first 6 months

Termination Notice

If the employee has worked continuously with the same employer for more than 6 months but less than 5 years; the employer must give at least 2 weeks written notice. The employee must give at least 1 weeks written notice.
If the employee has worked continuously with the same employer for more than 5 years, but less than 10 years; the employer must give at least 4 weeks written notice. The employee must give at least 2 weeks written notice.
If the employee has worked continuously with the same employer for more than 10 years, but less than 15 years; the employer must give at least 6 weeks written notice. The employee must give at least 2 weeks written notice.
If the employee has worked continuously with the same employer for more than 15 years; the employer must give at least 8 weeks written notice. The employee must give at least 2 weeks written notice.
If the employer does not want to give the employee notice, the employer must give the employee pay in lieu of (in place of) notice. This means that the employer must pays the employee as much pay as that employee would have received had the employee worked for his/her notice period.

Severance

After six years of continuous service, the worker is entitled to one week’s pay for each year of service, up to eight weeks.

 

Pre-hire Checks

Permitted with consent; relevant to job

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The information provided on this website is for general informational purposes only and is subject to change without notice. The content on this website is not intended to be a substitute for professional legal advice, diagnosis, or treatment. While we strive to keep the information up to date and accurate, People 2.0 makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

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