To attract more global tech talent, IRCC has opened a new three-year open work permit stream for H-1B holders in the US seeking to move to Canada. After opening the stream for applications on July 16, the federal government declared that it was closing the program after reaching the intended cap of 10,000 candidates after two days. Covering the six topics in the list mentioned below, this blog will offer you an insight into the key facets of Canadian life & differences between the two countries in these pivotal areas as you move to Canada.  

  • Work: Employment, Salaries, & Rights 
  • Healthcare
  • Cost Of Living: Transportation & Housing 
  • Safety
  • Taxes
  • Childcare/ Education For Children 

Work: Employment, Salaries, & Rights 

Notice of Employment: In the US, the so-called ‘at-will’ employment laws enable employers to terminate working relationships at any time, for any reason. On the contrary, Canadian employers must give employers two week’s notice or equivalent severance pay upon termination, depending upon the length of service. 

Minimum Salary & Wage Structures: While the minimum salary varies by state across the US & by province/ territory in Canada, they are generally higher in the north of the border. However, in 2021, the median net compensation in the US after taxes & deductions was higher than the median after-tax income in Canada during the same year. 

Vacation Time: Canadian employment law guarantees full-time employees a minimum of two weeks of vacation per year. There is no similar advantage mandated by the US federal law. 

Workplace Rights & Reflections: Canada offers wider & broader protections against workplace discrimination. Moreover, the unions are potent in Canada, with more legal rights to strike and organize. 

Healthcare 

Access: In Canada, healthcare is available universally via provincial health insurance programs. In addition, the US primarily depends upon employer-provided health coverage. As an immigrant/ newcomer in Canada, most provinces impose a three-month or less waiting period before immigrants can access public health insurance, making it vital that individuals secure health insurance until & unless they are eligible for provincial coverage. 

US Government Programs: Medicaid & Medicare are prominent federal health insurance programs that cater to senior citizens, those with specific health conditions & low-income individuals.   

Healthcare In Canada: Canada’s public health insurance, granted by the government, covers necessary medical services. For extra benefits, like outpatient prescription drugs, dental care, etc., Canadians hold private insurance plans. 

Cost & Wait Times: Canada extends health insurance to all citizens & PRs. However, people might have longer wait times because of specialist limitations. Therefore, the US might offer shorter waits, but out-of-pocket expenses can be higher. 

Cost Of Living: Transportation & Housing 

The third aspect for US residents to consider who are seeking to resident in Canada is the cost of living. 

Housing: Rental housing in the US is cheaper than rentals in Canada. According to the rental.ca National Rent Report, the national average for a one-bedroom apartment is $1,665. In addition, the US national average rent for an apartment of the same size was USD 1,149. Furthermore, for a two-bedroom apartment, the national average rent was $2,024 in Canada & $1,317 in the US. The price of accommodation & housing in Canada is double than that in the US, having a steady increase of 20% between 2021 & 2022. 

Transportation: While fuel tends to be less costly in the US, Canada provides more affordable public transportation options like buses & taxis. For individuals planning to drive after they move to Canada, US state-issued driving licenses can be swapped for a Canadian provincial license in most cases as long as you possess adequate driving experience. Moreover, American drivers will usually be permitted to operate a vehicle in Canada with their US license. However, within 90-180 days, they should complete a Driver’s License Exchange. The timelines & particulars related to this princess often vary between provinces. 

Education For Children/ Childcare 

Child-Raising Ranks: As per the best country rankings from US News, Canada ranks fifth worldwide for child-raising. On the contrary, the US stands at the 23rd position. In addition, the US News insinuates that the ranking is solely based on the country’s perception of eight attributes. These characteristics/ attributes are:

  • Human rights 
  • Being considered as family-friendly
  • Gender equality environment 
  • Being joyful 
  • Income equality
  • Being secure 
  • Having well-developed public education
  • Public healthcare system 

Parental Leave Rights: The parental leaves are offered generously by Canada as compared to the US. For instance, your employees can take paid maternity leaves of up to 15 weeks or even longer if they are suitable/ eligible for the nation’s EI program. Moreover, Canada has unpaid parental and maternity leave options that range from 17-71 weeks. However, in the US, eligible employees are granted over 12 weeks of unpaid maternity leave. 

Education: This aspect varies by province as well as the state in the US & Canada. However, if we look at the rankings provided by the US News, then we will see that the US is in first position and Canada is in fourth place.  

Safety 

Global Peace Index: In 2023, Canada was at the 11th place, according to GPI. This implies that there was a rise of two spots from last year, thus placing the nation ahead of the US (131st position). Moreover, accounting for aspects like external conflicts, rate of homicide, perceptions of criminality, etc., the GPI data showcases that Canada is perceived as a more secure country than the US. 

Taxes 

US Tax Obligations: Being a US resident, even after one becomes a tax resident in Canada, you have to continue to file annual tax returns with the IRS, besides the Canadian tax return. Well, this obligation is because of treaties between both countries, thus preventing fiscal evasion & double taxation. 

Tax Rates: Canadians face higher taxes as compared to Americans, with revenue largely going towards social services, like education and healthcare. The US federal income tax for the year 2023 ranges between 10% – 37%. On the contrary, the Canadian federal income tax is between 15% – 33%. State v/s Provincial Taxation: Each & every province as well as territory in Canada levies income tax, which is coordinated with the federal tax system. On the other hand, the taxation rate varies in the US, along with some states, like Alaska, Florida, etc., charging no state income tax at all.