2024 Regulatory Impact on Canadian Newcomers

Publish Date: 17/01/2024

Changes in Canadian New Tax Rules

• 1. Tax-Free Savings Account (TFSA) - Canada Revenue Agency (CRA) has increased the annual contribution limit for TFSAs by $500 - from $6,500 to $7,000 per year.
• 2. Registered Retirement Savings Plan (RRSP) - The annual percentage of income for RRSP account holders remains at 18% in 2024. Although, CRA has increased the maximum contribution to $31,560 from $30,780 benefiting Canadian permanent residents saving for long-term goals.
• 3. Canada Pension Plan (CPP) and Employment Insurance (EI) - Canadian workforce have CPP and EI payments deducted from their paycheques. In 2024, employees in Canada will now have to contribute $3,867, a $113 year-over-year increase for those earning at least $68,500 annually. EI premiums increased, with the 2024 maximum contribution set at $1,049.12 compared to $1,002.35 in the previous year. This means Canada will take slightly less money every month from the employed person.
• 4. Taxes withheld from paycheques may increase for some remote workers- The remote workers in Canada may face changes in payroll tax withholdings in 2024 if residing in a province different from their province of employment.

Changes In Canadian Province

• 1. Ontario: Minimum wage is expected to increase however, it currently set at $16.55 per hour, and new licensing procedures for employment agencies will be implemented.
• 2. Quebec: Out-of-province English speaking students may face tuition hikes by $3000. In a move that will not impact students pursuing research-based graduate degrees, affected students will see their tuition increase "from $8,992 to around $12,000. The Government of Quebec also announced minimum tuition fees of $20,000 for international students.
• 3. Prince Edward Island: Minimum wage increases from $15 to $15.40 on April 1 and to $16 per hour on October 1.
• 4. Nova Scotia: wage increases with inflation on April 1 however, it currently set at $15 per hour, with plans for additional annual increases.
• 5. Northwest Territories: Upgradation on Health benefits for low-income residents including income assessments for eligibility with effect on April 1.
• 6. Nunavut: The Nunavut has increased the minimum wage from $16 to $19 per hour on January 1.

New Financial Requirements for International Students- Begin in January 1, the Canadian government has doubled the cost-of-living financial requirement for international students applying for study permits. Applicants must now show $20,635 in savings, up from the previous $10,000. This is in addition to demonstrating funds for first-year tuition and travel expenses.