Fixed-term Contract in Canada & buying Private Insurance Plan

[thisislinh]

Hi,
I'm a graphic designer without Canadian experience, and have't even landed yet. I just got offered an one-year contract with hourly wages from a Toronto-based company. Assuming I consistently perform 40hrs a week till end of the contract, I'll be making slightly above $51K.

The thing is that in the contract, besides the salary the company doesn't offer any other benefits. I guess its a nature of a contract job not permie one. But I was expecting at least they would jointly cover an insurance plan.

What's your take on this? Would you take the job if you were me? I understand as a newcomer I shouldn't be picky, but the private insurance is quite important to me (I've been on a long-term treatment w/ prescribed meds)

Is this a norm with contract jobs in terms of compensation package?

If I have to buy my own Private Insurance Plan (mostly for the prescribed meds), anyone knows how it would cost on average? I'll do my research but would be nice to have some rough figures to compare.

Thanks a lot!

 

[canuck78]

Smaller companies can't usually afford to provide extended benefits and many people young and old are only offered contract positions. Definitely not uncommon. The bad news is that private insurance won't cover preexisting conditions/medications. Some provinces offer relief if your drug costs are a large percentage of your income. Graphic design jobs may be hard to find and imagine many jobs will be on contract. I don't know your history but it is pretty rare to arrive with a job. Getting some Canadian experience is important.

 

[vensak]

Also you will see just how low salary you will have. That one is comparable with a factory worker with app. 1-2 years experience. But then again it is a good start.

When it comes to things that are not under health insurance card (which you will get after 3 months):
Optometrist (if you need just glasses prescription, you can live without it for a while).
Chiropractor or massages (again you can live without it).
Podiater (that is if you need special shoe inserts).

Dentist (this one can be critical, however if you approach it the way, that you try to get things fixed at home, and go just for very basic treatments, then it is an expense app. 300-500 CAD per year)
Medicaments (and here it strongly depends. Of course those that are not on prescription do not count anyway, so you might be able to live without most of them for a while).

 

[scylla]

Hi,
I'm a graphic designer without Canadian experience, and have't even landed yet. I just got offered an one-year contract with hourly wages from a Toronto-based company. Assuming I consistently perform 40hrs a week till end of the contract, I'll be making slightly above $51K.

The thing is that in the contract, besides the salary the company doesn't offer any other benefits. I guess its a nature of a contract job not permie one. But I was expecting at least they would jointly cover an insurance plan.

What's your take on this? Would you take the job if you were me? I understand as a newcomer I shouldn't be picky, but the private insurance is quite important to me (I've been on a long-term treatment w/ prescribed meds)

Is this a norm with contract jobs in terms of compensation package?

If I have to buy my own Private Insurance Plan (mostly for the prescribed meds), anyone knows how it would cost on average? I'll do my research but would be nice to have some rough figures to compare.

Thanks a lot!

It's a low salary but I would take the contract for the reasons others have stated (i.e. get Canadian work experience, have a job at landing).

You can start looking for a new job once you are here. It's always easier to find a job if you are already working and have a job.

If you find something better before the 1 year contract is finished - then you can always change jobs. Just make sure you give your employer 2-3 weeks' notice.

 

[canuck78]

Also you will see just how low salary you will have. That one is comparable with a factory worker with app. 1-2 years experience. But then again it is a good start.

When it comes to things that are not under health insurance card (which you will get after 3 months):
Optometrist (if you need just glasses prescription, you can live without it for a while).
Chiropractor or massages (again you can live without it).
Podiater (that is if you need special shoe inserts).

Dentist (this one can be critical, however if you approach it the way, that you try to get things fixed at home, and go just for very basic treatments, then it is an expense app. 300-500 CAD per year)
Medicaments (and here it strongly depends. Of course those that are not on prescription do not count anyway, so you might be able to live without most of them for a while).

Not sure what kind of factory workers you are talking about but most don't get 51k they are hired in the past 10 years except perhaps some of the largest car companies and highly specialized manufacturing. This is an average salary for many especially in the more artistic fields and fairly typical for 1st job. Actually better than average probably if you look at statistics. Technically your salary should be a bit higher if you aren't receiving benefits.

 

[canuck78]

Also you will see just how low salary you will have. That one is comparable with a factory worker with app. 1-2 years experience. But then again it is a good start.

When it comes to things that are not under health insurance card (which you will get after 3 months):
Optometrist (if you need just glasses prescription, you can live without it for a while).
Chiropractor or massages (again you can live without it).
Podiater (that is if you need special shoe inserts).

Dentist (this one can be critical, however if you approach it the way, that you try to get things fixed at home, and go just for very basic treatments, then it is an expense app. 300-500 CAD per year)
Medicaments (and here it strongly depends. Of course those that are not on prescription do not count anyway, so you might be able to live without most of them for a while).

Not sure what province you are from (Quebec I assume) but most provinces don't cover the majority of the things listed even after 3 months. Each provincial healthcare system covers different things so important to look into that.

 

[vensak]

Not sure what kind of factory workers you are talking about but most don't get 51k they are hired in the past 10 years except perhaps some of the largest car companies and highly specialized manufacturing. This is an average salary for many especially in the more artistic fields and fairly typical for 1st job. Actually better than average probably if you look at statistics. Technically your salary should be a bit higher if you aren't receiving benefits.

1. I am in Ontario as the flag I am using suggests.
2. I was talking about additional health insurance that some employers offer (so not those from OIHP). As that was the part of the topic here (as a contractor no such benefit was offered to him).
3. The salary he mentioned equals app. 23-24 CAD per hour. That is more or less the same as:
- an apprentice somewhere after first year of his training
- a factory worker that is trained in a bit more demanding jobs (like machine operator or assembler).
And no their employer does not have to be big, but such worker needs to have some additional skills.

However in both cases we are speaking about positions with less education requirements (and by any means I do not underestimate those positions, but the fact is, that they have to invest less amount of their life in order to start earning money in their profession).

So what he got is simply a beginner deal (especially for Toronto).

Because of that I have suggested to endure it for the first year and then to find a better job opportunity.

 

[canuck78]

Think we need to differentiate between skilled tradespeople and basic factory workers with a high school education which make up a large portion of factory workers. Graphic design courses can vary between 1-3 years so comparable to many programs before an apprenticeship. If you purchase private insurance on your own the deductible for things like massage, optometrist, glasses, physiotherapy, Rx drugs, dentist makes it usually cheaper to pay cash. The coverage offered is usually terrible. Trust me I had to look a few years ago. If you need more than a cleaning plan for an expensive dentist trip ($300-500+). Based on a bit of research you are being accurately compensated.



Graphic Designer Jobs and Salaries
Graphic design employment is applicable to any number of businesses – marketing and graphic design go hand-in-hand for any business with a message to promote. Opportunities exist within organizations, or you can operate independently as a consultant or freelance graphic designer.

The average graphic design wage is around $21 an hour, but may be a little lower when you first enter the industry. Many positions in companies or firms have hourly wages of roughly $30 an hour, while working as a freelancer can be even more lucrative with hourly rates from $35 to $50 or more.

 

[vensak]

Think we need to differentiate between skilled tradespeople and basic factory workers with a high school education which make up a large portion of factory workers. Graphic design courses can vary between 1-3 years so comparable to many programs before an apprenticeship. If you purchase private insurance on your own the deductible for things like massage, optometrist, glasses, physiotherapy, Rx drugs, dentist makes it usually cheaper to pay cash. The coverage offered is usually terrible. Trust me I had to look a few years ago. If you need more than a cleaning plan for an expensive dentist trip ($300-500+). Based on a bit of research you are being accurately compensated.



Graphic Designer Jobs and Salaries
Graphic design employment is applicable to any number of businesses – marketing and graphic design go hand-in-hand for any business with a message to promote. Opportunities exist within organizations, or you can operate independently as a consultant or freelance graphic designer.

The average graphic design wage is around $21 an hour, but may be a little lower when you first enter the industry. Many positions in companies or firms have hourly wages of roughly $30 an hour, while working as a freelancer can be even more lucrative with hourly rates from $35 to $50 or more.

1. I was talking about trades apprentice (somebody who has app. 3- 4 semester of education). I am not talking about journeyman at all. They are in a higher league. An apprentice starts at 19-21 CAD. So after the first year he is able to hit his salary (but he is nowhere a skilled tradesman and still requires a lot supervision).
2. A factory worker can be low or medium skilled (that is why I put there a machine operator or assembler). They do require learning time (to be able to handle the machine or to be able to do the assembly according to the drawings). Yes many of those are looked down on, but people get paid decently there (and not just because you are working in a big company). The reason behind is the learning time until new person is able to fully operate the given machine.

In his case I am assuming good amount of experience, yet he got low end of he deal. Those 23/24 in Toronto translates to 20/21 in south or north Ontario. So yes he got a junior position. But it is even a bit worse. Since he is a contractor, company is saving a bit more money when they use him. (main reason for those freelancers to get better salaries is because they do not get other benefits).

However I am almost certain that he already has several years of work experience otherwise they would not even consider him. So the normal thing is happening here.
They are just using the fact that he is new and that he needs work fast for they advantage. So that way they have a flexible worker for next year.

 

[thisislinh]

Thanks so much for all the inputs guys. Really appreciate.

When I did my research on the Internet, I got a number of median income of $46,000 for Jr graphic designer in Toronto. Of course assumedly that came with a compensation package. Now I'm offered $51k without any other benefits I know it's not attractive, but it's not too bad for a starter... to hear that it's as low as a basic factory worker's salary is honestly kinda shocking. But indeed most of the comments I heard so far that it's a low number. I wonder how those statistical figures were calculated sites like Glassdoor gave a similar figure too.

I'm not yet familiar with the taxing in Canada, so when I asked the company, this is what they said:

"All team members including myself are independent contractors. We invoice the company for our billable hours plus hst/gst. If your earning revenue through a "self employed" setup or you setup a "corporation" like some team members have, then you collect HST from the company and you remit it to the government, as that's the tax which is payable. CPP and EI aren't applicable when your a contractor and collecting HST which is remitted to the government."

Now I'm confused, I'm just trying to figure out how much tax I'd be deducted. Does it mean if I make, say, $100 based on the hourly wage, the company will pay me a total of $100 + HST, and that amount of HST is what I need to pay to the government as income tax and ONLY that? No further reduction? (not talking about extra CPP/EI here)

 

[thisislinh]

So yes he got a junior position. But it is even a bit worse. Since he is a contractor, company is saving a bit more money when they use him. (main reason for those freelancers to get better salaries is because they do not get other benefits).

However I am almost certain that he already has several years of work experience otherwise they would not even consider him. So the normal thing is happening here.
They are just using the fact that he is new and that he needs work fast for they advantage. So that way they have a flexible worker for next year.

You're right. It's a junior position. And yes, I do have about 5 years work experience in my home country.

 

[canuck78]

No this is not a low skilled factory worker salary. Perhaps at GM but that is due to longterm union negotiations and that is a significant pay cut.

 

[vensak]

why I know that about factory workers is:
1. I work for a factory where some of the employees do assembly. My husband works on the floor for another company. A machine operator can get there after 1 year seniority somewhere 23+ CAD. And of course more if it is overtime work.
A good tradesman can get easily 30-35 or more, so there is no shock why apprentice gets "only" 20-21.
Decent salaries in Toronto are those on 100k+
And to avoid confusion, I am talking here about brutto salary (before taxes).

 

[canuck78]

I can tell you there are plenty of people making a lot less than 100K with a university degree maybe 2. That's why the younger generation is in trouble. They are making less and didn't benefit by the insane appreciation in housing prices in the GTA. Surprised people doing basic assembly/repetitive tasks in low tech manufacturing make that much. Nothing that require apprenticeships. Many working at somewhere like an amazon warehouse does not make that much unless they are in a senior role.

 

[vensak]

I can tell you there are plenty of people making a lot less than 100K with a university degree maybe 2. That's why the younger generation is in trouble. They are making less and didn't benefit by the insane appreciation in housing prices in the GTA. Surprised people doing basic assembly/repetitive tasks in low tech manufacturing make that much. Nothing that require apprenticeships. Many working at somewhere like an amazon warehouse does not make that much unless they are in a senior role.

There is nothing surprising there.
I was mentioning a good salary. But of course not everybody in GTA has a good salary. What I have heared from colleagues you need to have 150+ for a family to manage ok there.
But when it comes to factory salaries, there is no surprise there. Machine operators or good assemblers (those who can work alone and read the drawings) are decently valued.
Amazon has it setup the way that they can swap people really fast. That is not the case if you have to learn certain nuances (that is why I also said, that it takes app. 1 year to be trained)