A self-employed virtual assistant in Canada should calculate a minimum rate from the bottom up: the income you want, plus the CPP and time off an employer would normally pay, plus your business costs, divided by the hours you can actually bill. For someone aiming to match a $25-an-hour employee job, that lands near $50 an hour billed. This article shows the calculation and compares hourly, retainer and package pricing.
Part of our passage on virtual assistant jobs in Canada.
Why shouldn’t you copy rates from freelance platforms?
Global freelance marketplaces show VAs from many countries side by side. Rates that are fair in a country with lower living costs are below Canadian minimum wage once you subtract a Canadian VA’s costs. Clients who choose purely on the lowest hourly price are also the clients most likely to leave for a cheaper offer. A Canadian VA competes on reliability, time-zone overlap, language (English and French), knowledge of Canadian tools and rules, and accountability – and the rate should reflect that.
There is also a legal floor in spirit, if not in law: minimum wage does not apply to self-employed people, but if your effective hourly income after costs falls below your province’s minimum wage ($17.95 in Ontario since October 1, 2026), you would be better off in an employee job.
How do you calculate your minimum rate?
A worked example for someone who wants the equivalent of a $25-an-hour full-time employee job. Replace the numbers with your own.
| Step | Calculation | Amount |
|---|---|---|
| Target salary | $25 × 1,950 hours (37.5 h × 52 weeks) | $48,750 |
| Employer half of CPP (2026) | 5.95% × ($48,750 − $3,500) | $2,692 |
| Vacation pay equivalent | 4% of target salary | $1,950 |
| Business costs | Software, share of internet and phone, equipment, insurance, accounting | $3,000 |
| Income needed | Sum | $56,392 |
| Billable hours | 25 billable hours × 46 working weeks | 1,150 |
| Minimum hourly rate | $56,392 ÷ 1,150 | about $49 |
Why only 25 billable hours a week? Marketing, onboarding, invoicing, learning tools and gaps between clients are real work that nobody pays for. In the first year, many VAs bill even fewer hours. The calculation also leaves out health and dental benefits, sick days and retirement savings an employer might provide – add those if they matter to you.
Tip: keep this calculation in a spreadsheet and update it every January, when CPP figures change and you know last year’s real billable hours.
Once your sales pass $30,000 in four consecutive calendar quarters, you must also register for GST/HST and charge it on top of your rate to Canadian clients. The tax is collected for the government; it is not part of your income.
Should you charge hourly, by retainer or by package?
| Model | How it works | Good for | Watch out for |
|---|---|---|---|
| Hourly | Track time, invoice monthly | New clients, unpredictable work | Income capped by hours; clients watch the clock |
| Retainer | A block of hours each month (for example 20 hours), paid in advance | Ongoing clients; predictable income for you | Define whether unused hours roll over and what happens with overtime |
| Package or fixed fee | A defined result for a set price (for example “inbox and calendar management, weekdays”) | Repeatable services you have streamlined | Scope creep – list what is included and what costs extra |
Many VAs start hourly to learn how long tasks take, then move steady clients to retainers. Retainers paid in advance also protect you from late payments.
When and how should you raise your rates?
- When you are fully booked for two or three months in a row, raise rates for new clients first.
- Once a year for existing clients, with 30 to 60 days’ written notice and a short reason (more experience, new tools, rising costs).
- When you add a specialised skill – bookkeeping software, a CRM, French, a niche like real estate or clinics.
- Not by discounting first. Introductory discounts make the later “real” rate feel like a price increase. Offer a small trial project at your normal rate instead.
Rates only matter if the work is real. Beware of “clients” who pay large sums up front by cheque and ask for a partial refund – the fake cheque scam often targets new freelancers.
More on this passage: start your business with how to become a virtual assistant in Canada, or read the full guide to virtual assistant jobs in Canada.
