Comparison of employee benefits in Canada and Russia

In today’s globalized world, employee benefits have become an important means for companies to attract and retain talents. The social-economic environment and legal systems of different countries determine their own unique employee welfare systems.In this article we will take Canada and Russia as examples to compare employee benefits in the two countries in detail. Through this comparison, companies can better understand the challenges and opportunities of operating in different countries, and then choose the best EOR (Employer of Record) supplier—such as Gonex—to optimize global talent management.

Introduction

Employee benefits refer to various subsidies and services provided by employers to employees in addition to wages, aiming to improve employees’ quality of life and job satisfaction. There are great differences in employee welfare policies in different countries.

Social Security System

Canada

Canada’s social security system is very complete, covering many aspects such as pension insurance, unemployment insurance, and medical insurance. According to Statistics Canada, Canada’s social security spending will account for more than 15% of GDP in 2023. Pension insurance in Canada is divided into public pensions and private pensions. Public pensions include the Canada Pension Plan (CPP) and Old Age Security (OAS), which provide basic living security for the elderly.

Russia

In contrast, although Russia’s social security system also covers pension insurance, unemployment insurance and medical insurance, its coverage and benefit levels are relatively low. According to data from the Russian Federal Statistical Service, Russia’s social security expenditure accounted for about 9% of GDP in 2023. Russia’s pension insurance mainly relies on state pensions. Although there are also private pensions, their popularity and coverage are far less than those in Canada.

Paid time off

Canada

Canada’s paid leave policy is relatively loose. According to Canadian labor laws, employees are entitled to at least two weeks of paid leave every year, and employees with more than five years of service can enjoy three weeks of paid leave. In addition, Canada’s legal holidays include New Year, Good Friday, Christmas, etc., totaling 9 days.

Russia

Russia’s paid leave policy is even more generous. According to Russian labor laws, employees are entitled to at least 28 days of paid vacation per year. In addition, Russia’s statutory holidays include New Year, Victory Day, Labor Day, etc., totaling 14 days. This makes the total number of paid vacation days per year for Russian employees far greater than that in Canada.

Health and safety

Canada

Canada’s health and safety protection system is very complete. Employees enjoy free public medical services, and employers are also required to provide additional health insurance. According to the Canadian Institute of Health Information, Canada’s health care spending accounted for more than 10% of GDP in 2023. Workplace safety standards in Canada are overseen by provincial work safety boards to ensure employees are working in a safe environment.

Russia

Russia’s health and safety protection system is relatively weak. Although Russia also has public health services, their quality and coverage are lower. According to World Bank data, Russia’s medical expenditure accounted for about 5% of GDP in 2023. Workplace safety standards in Russia are overseen by the Federal Service of Labor and Employment, but due to insufficient supervision, workplace accidents occur frequently.

Working hours and work-life balance

Canada

Canada attaches great importance to work-life balance. The law stipulates that working hours should not exceed 40 hours per week, and overtime pay must be paid for overtime work. According to Statistics Canada, the average working week in Canada in 2023 will be 36 hours. Canadian companies also encourage employees to work flexibly to improve work efficiency and employee satisfaction.

Russia

Russian law stipulates that working hours should not exceed 40 hours per week, but due to the intensity of work, many employees actually work more than the legal limit. According to the Russian Federal Statistical Service, the average working week in Russia in 2023 is 42 hours. Although Russia has also begun to promote work-life balance in recent years, the effect of its implementation remains to be seen.

Career development and training

Canada

Canadian companies attach great importance to the career development and training of their employees, and many companies provide regular training and career development plans for their employees. According to data from the Ministry of Human Resources and Skills Development Canada, Canadian companies  spent an average of CAD 1,000 per person per year on employee training in 2023. The government also supports companies with employee training through various subsidies and programs.

Russia

Russian companies are relatively lagging behind in career development and training, and many companies lack systematic training plans. According to data from the Russian Federal Statistical Service, the average expenditure of Russian companies on employee training in 2023 was 3,000 rubles per person per year. Although the government also has some policies to support vocational training, their effects are limited.

Wage levels and income security

Canada

Salary levels in Canada are relatively high. According to Statistics Canada, the average annual salary in Canada in 2023 was CAD 50,000. Canada also has a complete income security system, such as unemployment insurance, disability insurance, etc., to ensure that employees have basic living security when they are unemployed or injured.

Russia

Salary levels in Russia are relatively low. According to data from the Russian Federal Statistical Service, the average annual salary in Russia in 2023 was 600,000 rubles. Although Russia also has unemployment insurance and disability insurance, its level of protection is far less than that of Canada.

Conclusion

By comparing employee benefits in Canada and Russia, it can be seen that Canada’s employee benefit system is more complete, with wider coverage and a higher level of protection. For companies expanding their business globally, choosing a suitable EOR provider is crucial. As a leading EOR provider, Gonex, with its rich experience and professional services, can help companies operate smoothly between different countries and ensure that employees enjoy the best welfare benefits, thereby improving employee job satisfaction and productivity.

Key Points：

Global hiring trends

In today’s competitive market, understanding global hiring trends is crucial for businesses expanding internationally. For example, Canada’s strong emphasis on employee benefits, such as comprehensive health insurance and paid time off, reflects a trend towards enhancing employee satisfaction to attract top talent. On the other hand, Russia’s generous paid leave policies highlight the importance of work-life balance in the global employment landscape. By keeping abreast of these trends, companies can tailor their strategies to effectively manage and retain a global workforce.

Best global employer of record

When it comes to managing international employees, partnering with the best global employer of record is essential. Gonex, a leading EOR provider, offers unparalleled expertise in navigating the complexities of international labor laws and ensuring compliance across different jurisdictions. With Gonex, businesses can provide superior employee benefits, such as those seen in Canada’s robust social security system or Russia’s extensive paid leave policies, thereby improving employee satisfaction and productivity.

International human resources agency

As an international human resources agency, Gonex specializes in helping businesses streamline their global operations. By offering tailored solutions that address the unique employee benefit systems in countries like Canada and Russia, Gonex ensures that companies can manage their workforce efficiently. Whether it’s handling Canada’s comprehensive health and safety regulations or Russia’s extensive vacation policies, Gonex provides the necessary support to optimize global talent management and enhance employee well-being.