Employers may want to revisit their per diem and allowance structures as the cost of living in Canada continues to rank among the highest globally, according to WHR Global’s 2024 benchmark study on allowances and per diems.
The report, which analyzed housing, utilities, transportation, and meal expenses across 99 countries, offers guidance to HR and global mobility teams aiming to support employees on international assignments.
Housing costs
Canada ranks 12th in terms of housing expenses, with the monthly rent for a one-bedroom apartment in urban centres averaging $1,343 USD ($1,885 Cdn), while three-bedroom apartments cost $2,168 ($3,040 Cdn). Outside city centres, the costs are somewhat lower but remain high at $1,208 ($1,695 Cdn) for a one-bedroom and $1,843 ($2,585) for a three-bedroom.
Utilities and internet
Utilities are another substantial expense, with typical costs for an 85m² apartment reaching $149 ($209 Cdn) per month for essentials such as electricity, heating, and water. Additional monthly costs for internet and mobile phone services are approximately $61 ($85 Cdn) and $46 ($65 Cdn), respectively.
Transportation and food
In transportation, the report highlighted that a single ticket for local transport in Canada costs $2.52 ($3.53 Cdn), with a monthly pass reaching $73.50 ($103.07 Cdn). For those relying on taxis, the rate averages $1.57 ($2.20 Cdn) per kilometre.
Food costs also add up, especially for employees on preview or home-finding trips. A fast-food meal in Canada costs about $10.80 ($15.14 Cdn), while a meal at an inexpensive restaurant is $17.99 ($25.23 Cdn). For a mid-range restaurant, two people can expect to spend around $71.97 ($100.92 Cdn).
The WHR Global report is a tool for Canadian employers to assess how their current allowances compare globally, with a focus on ensuring employees are fairly compensated as inflation drives up living costs. According to WHR Global, an inadequate allowance structure can negatively impact employee morale and assignment success rates, highlighting the importance of periodic review and adjustments where necessary.
| Category | Description | World Rank | Cost (USD) |
|---|---|---|---|
| Housing | Rent 1 Bedroom (City Centre) | 12 | $1,343 |
| Rent 3 Bedroom (City Centre) | 12 | $2,168 | |
| Utilities | Electricity, Heating, Cooling, Water | — | $149 |
| Internet | — | $61 | |
| Mobile Phone | — | $46 | |
| Transportation | One-Way Ticket (Local Transport) | — | $2.52 |
| Monthly Pass (Local Transport) | — | $73.50 | |
| Taxi Rate (per km) | — | $1.57 | |
| Meals | Fast Food Combo Meal | — | $10.80 |
| Inexpensive Restaurant | — | $17.99 | |
| Mid-Range Restaurant (for 2) | — | $71.97 |
Canada versus the United States
When it comes to living expenses, Canadians may face a slightly lighter financial load than their neighbours to the south, but differences in specific categories reveal a complex picture. Data from WHR Global’s 2024 benchmark report on allowances and per diems shows that Canadian cities remain competitive with the United States in several cost categories, though the U.S. often ranks higher in certain key areas.
For housing, U.S. rental prices exceed those in Canada for both one- and three-bedroom apartments. A one-bedroom apartment in a U.S. city centre costs an average of USD 1,759, compared to Canada’s USD 1,343. Three-bedroom rentals in American city centres also come at a premium, averaging USD 2,936, compared to USD 2,168 in Canadian urban areas.
Utility costs show a similar trend, with Americans paying more for essential services such as electricity, heating, and water. In the U.S., these utilities average USD 207 per month, whereas Canadians pay around USD 149. Internet costs are relatively close, with Canadians paying about USD 61 per month and Americans spending around USD 71. Mobile phone plans in the U.S. also come at a slight premium, averaging USD 55 monthly compared to Canada’s USD 46.
Transportation costs reveal a mixed picture. While a single one-way ticket for local transit is nearly identical between the two countries—USD 2.52 in Canada and USD 2.50 in the U.S.—monthly transit passes are more affordable in the U.S., averaging USD 65.11 compared to USD 73.50 in Canada. Taxi fares, meanwhile, are slightly higher in the U.S., with a per-kilometre rate of USD 1.71 versus Canada’s USD 1.57.
For dining out, the data indicates a marginally higher cost in the U.S. Fast food meals average USD 11 in the U.S., compared to USD 10.80 in Canada. The gap widens at full-service restaurants, where a meal at an inexpensive venue in the U.S. averages USD 20, slightly above Canada’s USD 17.99. A meal for two at a mid-range restaurant costs about USD 75 in the U.S., compared to USD 71.97 in Canada.
These numbers underline the need for both Canadian and U.S. employers to carefully consider per diem and allowance rates, as even small cost variations can add up significantly for employees on extended assignments or frequent relocations. For HR and mobility teams, these findings offer a snapshot of the financial landscapes in two of the world’s most closely linked economies.
See the full report at https://www.whrg.com/allowances-and-per-diems/