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Canada has an extensive social security system covering pensions and social welfare benefits, which covers virtually the whole population. Responsibility for the planning, management and delivery of social security programs is shared between the federal and provincial governments.

The universal pension system is state-funded, while employees, employers and the self-employed are required to contribute to the earnings related pension scheme and the employment-related benefits scheme, which covers sickness and maternity pay, unemployment benefits and other welfare assistance. Under the Child Tax Benefit scheme, tax-free monthly payments are made to families with children under 18. Most residents are also covered to receive physician and hospital services, but must meet federal and provincial eligibility criteria.

The universal pension is payable from the age of 65 for people who have lived in Canada for at least ten years after the age of 18. It is not necessary to retire from employment in order to receive this pension.

All foreign nationals who are going to be living and working in Canada will be provided with a Social Insurance Number (SIN), and must give this to their employer so that social security contributions can be made direct from their salaries. If the card is not provided automatically, it can be obtained from the nearest Human Resources and Skills Development Canada (HRSDC) office. Employees and their employers each contribute 4.95% of earnings (2005 figures) to the social security system, while the self-employed contribute 9.9% of their earnings.

Canada has social security agreements with many countries, which allow periods of residence or social security payments made in these countries to count towards eligibility for social security benefits in Canada.

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