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Contract or permanent? A guide for technology professionals in Canada

Contracting can pay more and offer variety. Permanent roles offer stability, benefits, and a path to leadership. Here is how the two really compare, and the questions that help you decide. Most of it applies to supply chain and marketing professionals too.

9 minute read · Updated September 2026 · General information, not tax or legal advice

The three ways to work

Permanent employeePayrolled contractorIncorporated contractor
Who employs youThe clientGetJob Canada (employer of record), placed at the clientYour own corporation, contracted to GetJob Canada or the client
How you are paidSalary, usually semi-monthlyHourly or daily rate, on our payroll, with statutory deductionsYour corporation invoices; you decide salary versus dividends with your accountant
BenefitsEmployer plan, pension or RRSP match, paid vacationVacation pay; benefits possible on longer assignmentsYou arrange your own
Typical pay premiumBaseline10 – 25% above equivalent salary, pro-rated25 – 45% above, before your corporate costs
SecurityNotice and severance under provincial lawAssignment notice period, typically 1 – 2 weeksContract notice period, typically 1 – 2 weeks
AdminNoneTimesheetsTimesheets, invoicing, HST, corporate tax, insurance, bookkeeping

When contracting makes sense

  • You have a skill in project demand: ERP implementation, cloud migration, security remediation, data platform builds, CRM migrations, launch campaigns.
  • You want variety and are comfortable finding the next assignment, or working with a recruiter who does.
  • You can absorb gaps between contracts, typically two to six weeks a year, without stress.
  • You are disciplined about tax, insurance, and retirement saving, or willing to pay an accountant to be.

When permanent makes sense

  • You want to own a function and build something over years, not deliver a defined scope and leave.
  • Benefits matter: a family plan, a defined-benefit pension in the public sector, parental leave top-ups.
  • You are early in your career and want mentoring, training budgets, and a path to leadership.
  • You are applying for a mortgage or immigration status where stable employment income helps.

Questions to ask before accepting a contract

  1. Is the rate all-in, and does it include vacation pay?
  2. What is the notice period on either side, and is there a minimum guaranteed term?
  3. Who provides equipment and system access?
  4. Is there a realistic extension or conversion path, and are conversion terms pre-agreed?
  5. For incorporated work: does the client require specific insurance coverage, and is the engagement structured to reduce personal services business risk? Ask your accountant.

Incorporation: a quick reality check

Incorporating makes sense when you expect to contract for more than a year, bill enough to justify the costs, and can leave some income in the corporation. Costs include incorporation, annual filings, corporate tax returns, HST registration and remittance, liability insurance, and bookkeeping. Many contractors on their first assignment choose payrolled contracting for a year to test the model before incorporating. We can talk through both, but the tax decision belongs with an accountant.

How we support contractors

  • We tell you the rate, the engagement model, and the notice terms before you interview
  • Payrolled contractors are paid on a regular cycle with deductions handled
  • Incorporated contractors get a clear services agreement and prompt payment terms
  • We start looking for your next assignment six to eight weeks before the current one ends

Considering a contract role? See current contract roles or register and tell us what you are open to.