This year Canadian newcomers can experience several changes
in laws and regulations that are implemented on both the provincial and the
territory level. The changes starting from employment and taxes for
international students' Tuition will definitely impact on international
students, temporary foreign workers, and permanent workers in Canada. Well, this blog will give you an idea about the changes that will help you to make
decisions for federal regulation which are expected in 2024 for the newcomers.
TAX RULES AFFECTING
CANADA:-
The Canada
Revenue Agency is changing many tax rules this year, which will definitely
impact permanent residents.
TAX FREE SAVING
ACCOUNT:-
The
CRA increased the annual contribution limit for TFSAs by $500 to $6,500 to
$7,000 per year. This is important for the residents in Canada, including
Permanent residents as it allows the account holder who contributes money into
the account to avoid getting tax on capital gains and withdrawals.
REGISTERED RETIREMENT
SAVING PLAN:-
The annual percentage of income that
RRSP holders can deposit into their account is 18% in 2024, The CRA
increased the contribution from 30,780$ in 2023 to 31,560$ in 2024. This will
be beneficial for the PR savings for the long term future.
CANADA PENSION PLAN AND
EMPLOYMENT INSURANCE:
The Canadian employees or workers have
CPP or EI which is deducted from their paycheques. In 2024, employees in Canada will now have to pay $3,867 towards
the CPP 2024, a year-over-year increase of $113 for those earning at least
$68,500 annually. This means, in the short term that employed persons across
Canada will take home slightly less money every month. A second CPP tax, also
set to begin this year, was recently announced by the federal government.
NEW FINANCIAL REQUIREMENTS FOR
INTERNATIONAL STUDENTS:
For all international students with study
permit applications received/submitted as of January 1, the federal government
has now more than doubled the cost-of-living financial requirement that
applicants must display during the application process. In other words,
Canadian study permit applicants must now display that they have $20,635 in
savings – a significant increase from the $10,000 that international study
permit applicants had to display before the start of this year.
NEW CHANGES AT THE PROVINCIAL LEVEL:
Broken down by province, the following will
outline changes coming to laws and regulations around Canada that are expected
to have a significant impact on newcomers in this country.
Ontario
Minimum Wage Increase: Currently
set at $16.55 per hour, the province is expected to increase its minimum wage
rate on October 1.
Quebec
Out-of-Province Tuition Hike: Beginning this Fall, out-of-province
English-speaking students looking to study in undergraduate or professional
graduate programs at Quebec’s three English-language institutions – Bishop’s,
McGill, and Concordia – will see their tuition increase by around $3000.
Stricter Language Criteria:
As of November 23, the Government of Quebec will require temporary
foreign workers and international students* applying through the Quebec
Experience Program (PEQ) to reach new French-language proficiency levels –
specifically, at least seven for speaking and five for writing. Additionally,
the PEQ will now require temporary foreign workers to pass a French test to
renew their work permits.
Prince Edward Island
Minimum Wage Increase:
Currently set at $15 per hour, the province will increase its minimum
wage rate to $15.40 on April 1 and then to $16 per hour on October 1.
Nova Scotia
Minimum Wage Increase:
Currently set at $15 per hour, the
province will increase its minimum wage rate with inflation on April 1. Nova
Scotia’s government has also indicated a plan to further increase the
provincial minimum wage by an additional one percent annually.
Nunavut
Minimum Wage Increase:
Previously set at $16 per hour, Nunavut
has increased its minimum wage rate to $19 per hour effective January 1.
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