Starting Work in Canada This Winter? Here’s How to Understand Your First Paycheque

Canadian pay stubs include taxes, contributions, and a few acronyms that don’t always make sense at first glance. And for seasonal workers, especially in hospitality or resort roles, the mix of hourly wages, overtime, tips, and vacation pay can make things look even more complicated.

Gross Pay vs. Net Pay 

Almost every pay stub will show two main amounts: 

• Gross pay: what you earned before anything was taken off.

• Net pay: what actually lands in your account. 

And yes, those numbers rarely match. Not because your employer is being shady, but because Canada has a structured system of deductions. 

What You’ll See on Your Pay Stub 

Pay stubs vary, but most will have the same core pieces. And if you’re working a resort job you’ll almost definitely see these: 

1. Income (What You Actually Earned for the Week)

• Hourly wages or salary: The basic stuff.

• Overtime: Usually, 1.5x your hourly rate after 40 hours/week. Ski resorts love overtime on busy weeks, so this might show up fast.

• Tips: If you’re serving food or drinks, tips often appear separately.

• Vacation pay: Many seasonal roles pay this with each cheque instead of giving you paid time off.

• Stat holiday pay: For official holidays. Whether you qualify depends on the province and your hours. 

Sometimes you’ll see weird little lines like “shift premium” or “retro pay.” Don’t panic, those are usually bonuses for specific shifts or corrections from a previous period. 

Where Your Money “Disappears”: The Deductions 

This is the part that usually causes the biggest eyebrow raise. But each piece has a purpose. 

Income Tax (Federal + Provincial) 

Canada taxes you progressively. Your employer calculates this automatically every pay period, using the province where you work and the form you filled out when you got hired (the TD1). 

CPP (Canada Pension Plan) 

If you’re 18–70 and working outside Quebec, you pay into CPP. Think of it as the tiny slice of your pay that’s secretly helping Future You. Your employer even matches it. 

Quebec workers pay into QPP instead, same idea, different name. 

EI (Employment Insurance) 

This one feels annoying until the moment you need it. Employment insurance helps you if you get laid off, get sick, need parental leave, or have to take time off to care for someone. EI can be a lifeline in certain situations, but eligibility isn’t automatic. Many EI programs require a minimum number of insurable hours, which some IEC or seasonal workers may not reach, depending on their schedule and how long they’ve been employed. 

Other Possible Deductions 

They’re not as scary as they look: 

• Union dues 

• Health or dental plan premiums 

• Group RRSP or workplace pension contributions 

• Uniforms, training and equipment costs can also show up as deductions, which is fairly common in ski-season and resort jobs. 

Some employers toss in great benefits even for temporary workers, so if you see deductions for a health plan, you’re probably getting something useful out of it. 

Acronyms You’ll Spot and What They Actually Mean 

• CPP: Canada Pension Plan: retirement contributions 

• QPP: Quebec Pension Plan: same thing, Quebec edition 

• EI: Employment Insurance: temporary income support 

• YTD: Year-to-Date: totals you’ve earned and paid so far 

• TD1: Tax form that tells your employer how much tax to withhold 

Why Your Take-Home Pay Might Be Lower Than Expected 

Here’s the thing: Canada’s payroll system can feel a bit heavy-handed your first time. If you agreed to a $20/hour role, you might expect a solid chunk every two weeks. But after everything is deducted, most people take home around 70–75% of their gross pay. 

A rough split looks like this: 

• Income tax: 15–30% depending on your income + province 

• CPP: 5.95% 

• EI: 1.64% 

• Other deductions: 1–3% 

If you’re working full-time during peak ski season, you’ll see this clearly. And when the rush slows down, your deductions will shrink a bit too – your income tax adjusts depending on how much you earned that pay period. 

A Few Tips for Newcomers (Especially Seasonal IEC Workers) 

• Double-check your first paycheque. Mistakes happen. If something looks off, ask payroll or HR.
• Track your YTD numbers. They help massively when tax season rolls around. They also show whether you’ve almost hit CPP/EI maximums – which means more take-home pay for the rest of the year.
• Know what your benefits actually cover. If you’re paying for a health plan, make sure you know what you can claim. Many employers use apps like SunLife or Canada Life to make it easy.
• Keep a small emergency buffer. Seasonal work can be unpredictable – snowstorms, slow weeks, sudden schedule changes. Even a small cushion goes a long way.

Your first Canadian paycheque can feel like a cold slap of reality, especially if you’ve just spent a week teaching ski lessons in -20°C and expected a bigger reward. But once you understand the deductions, the whole system makes more sense. You’re not just losing money, you’re contributing to things that protect you later. 

And if something really doesn’t make sense? Ask HR or payroll. People do it all the time, and they’re usually happy to walk through every line with you.