Young Professionals Permit or VIE: the choice for an expatriation to Canada?

Are you unsure about the type of work permit for your expatriation to Canada? You have already heard about the VIE, the PVT or the "Jeune Professionnel (JP)" permit for Canada and you are wondering which permit is right for you?

Here is a comparison of these two work permits for Canada: the Young Professionals permit and the VIE (Volontariat International en Entreprise). You will find all the necessary information to make your choice for your expatriation to Canada and we will give you the winner of this match at the end of the article!

The Young Professionals category for his expatriation to Canada

The Young Professionals (YP) permit is a work permit available through theInternational Experience Canada (IEC). This program aims to offer young people (between 18-35 years old for the French) the opportunity to work in Canada. The Young Professionals Permit is for a period of two years for the French.

This is a "closed" work permit: it allows you to work temporarily in Canada for a defined Canadian employer. It will allow you to have a first experience in Canada before considering to stay longer and start your permanent residence process.

business-france-volontariat-international-entreprise

What is a VIE?

The VIE (Volontariat International en Entreprise) is a civic service managed by Business France. It allows you to work and support the growth of a French company with a subsidiary in Canada.

This program is reserved for young French people between the ages of 18 and 28 for a period of 6 to 24 months.

Young Professionals & VIE : Comparative for your expatriation in Canada

 

Young Professionals International Volunteer Experience (VIE)
Duration 24 months maximum From 6 to 24 months
Salary Determined by the company Convention from the French state. It is not a salary but an allowance.
Increases Possible Impossible
Employee status Determined by the company and can change Mainly "trainee" status
Health insurance Eligible for theRégie de l'assurance maladie du Québec (RAMQ) April International Insurance
Age limit 35 years old for French citizens 28 years old when registering on the platform and 29 years old at the beginning of the mission
Taxes Taxable according to the current scale Income is not taxable in either France or Canada
Type of work permit Closed Closed
young-professional-canada-license

Young Professionals Permit & VIE: duration of employment in Canada

VIE

The VIE lasts between 6 and 24 months.The VIElasts between 6 and 24 months and can be renewed once. Renewal must be requested from the managing organisation 1 to 3 months before the end of the assignment.

Young Professionals

In Canada, the Young Professionals permit is valid for a period of 24 months maximum.

Young Professionals Permit & V.I.E.: salary in Canada

VIE

The VIE salary is not a salary but an allowance. It is composed of a fixed part (called common allowance) and a variable part (called geographical allowance ). geographical allowance) depending on the country in which you are going to work.

-The basic fixed monthly common allowance is 749,33 € (1 075 $) as of January 1, 2023. This amount is exempt from income tax and no contributions (social security, unemployment insurance, CSG...) are deducted.

-The monthly geographic allowance in Canada depends on the province of your employment. In 2023, for Quebec, the geographic allowance is €1,832.19 ($2,629.52) .

Note: the company may pay for a small portion of your accommodation (to be negotiated). In this case, the geographic allowance will be reduced by 20%..

In VIE, you will not be entitled to bonuses, commissions or incentives during the term of your contract, or even a raise! 

Young Professionals 

Under the Young Professionalspermit , you will be given a local contract and, therefore, a local salary.You and the Canadian company will jointly decide on your salary. There is no cap on your salary.

Namely, local wages in Canada, in IT, are generally higher than in France. than in France.

You will then be able to benefit from the various bonuses, commissions and salary increases that will be granted by the company.

Young Professionals Permit & VIE : the example of a developer with 5 years of experience in Quebec

Below is a comparison of the salary between a VIE and a Young Professionals permit for a web developer with five years of experience.
Amounts are for illustrative purposes.

 

Young Professionals VIE
Gross monthly salary or allowances 6 666 $

Common allowance: $1075 $

Geographic allowance : (2629 $- 20%*)

Total = $3,178

Gross annual salary 80 000 $ 38 136 $
Taxes

26 527 $ (33%)

Possible tax deductions (health, moving...)

0
Support for housing 0 500 €* = 717 $
Net salary 53 473 $ 38 136 $
Total salary (with accommodation) 53 473 $ 38 853 $
TOTAL / month  4 456 $ 3 237 $

* The host company or organisation may pay part of the cost of your accommodation. In this case, the geographical allowance is reduced by 20% but the common allowance remains the same. For the example, we have taken 500 euros for the accommodation allowance (the amount remains optional and at the discretion of the company).

demarches-life-canada-young-professionals

Young Professionals Permit & VIE: administrative procedures

VIE

The Volontariat International en Entreprise allows, under certain conditions, to carry out a mission (scientific, technical, commercial, humanitarian...) in a French company abroad. You must be between 18 and 28 years old to apply. 

Steps to follow to register as a VIE

Young Professionals

In order to start the administrative process for the Young Professionals Permit, you must have a job offer from a Canadian employer. After that, the process is very simple and quick! Follow our guide to register in the EIC pool for WHPs. For the Young Professionals permit, you will need to select "Young Professionals when you are asked which pool you want to register in!

Young Professionals Permit & VIE: taxation in Canada

VIE

With a VIE, you do not receive a salary, but an allowance, so you do not pay income tax. 

    Young Professionals

    When you are on a Young Professionals Permit, Canadian income tax is deducted at source from your salary. This means that the employer collects the tax from the employee's salary and remits it to the government.

    Young professional life-canada-holiday

    Young Professionals Permit & VIE: holidays in Canada

    VIE

    You depend on the French legislation. Therefore, you will have 2,5 days / month of work, that is to say 30 days per year (it will not be possible for you to take them in anticipation nor to be paid for them if you leave the company).

    To this you can add four paid local holidays, for the other holidays you will usually have to take time off.

    On average, per year, for a VIE, you will have 34 days not worked and paid.

      Young Professionals

      You are subject to local legislation. In Canada, the minimum paid vacation is two weeks. However, in the IT sector, you usually have four weeks of vacation time.s.

      In Quebec, you have 10 non-working paid holidays (holidays that fall on a weekend are usually "pushed back" or "advanced" to Monday or Friday).

      On average per year for a Young Professionals license, you will have 30 days not worked and paid.

      Young Professionals Permit & VIE: health insurance

      VIE

      If you go on a VIE, you will have access to private social security coverage set up by Business France. Currently, this is April International.

      If you are accompanied by your partneryour partner will be eligible for VIE health coverage only if he/she undertakes not to carry out any salaried activity in the destination country.

        Young Professionals

        If you are on a Young Professionals permit for more than six months, and you live in the province of Quebec, you will benefit from the Quebec Health Insurance Plan (RAMQ), which is the Quebec social security system. social security system.

        Your spouse and children may also be eligible for RAMQ.

        You can also benefit from your employer's company insurance, which will also cover a portion of your health care costs.

        Young Professionals Permit & VIE: professional development

        VIE

        If you choose to go on a VIE, you will have to make do with the allowance offered by your employer when you are hired for the entire duration of the contract. There is no possibility of upgrading.

          Young Professionals

          The Young Professionals permit does not impose any rules on your professional development. You can negotiate your salary after one year, for example, or even move to a new position!

          Young Professionals Permit & VIE: retirement and unemployment

          VIE

          As mentioned above, you do not pay taxes or social security contributions during your VIE. As a result, you do not pay unemployment or pension contributions.

          However, the duration of your VIE assignment will be counted as working time for your pension. You will have to apply for this when you return.

            Young Professionals

            With a Young Professionals permit, you contribute to the Canadian pension plan. There is a bilateral agreement between France and Canada.

            This agreement allows you to receive a Canadian retirement pension if you live in France and vice versa (several conditions apply).

            More information on the bilateral agreement.

            expatriation-canada-life-young-professionals-win

            Young Professionals Permit Versus VIE: what to choose for your expatriation to Canada?

            The WINNER: the Young Professionals permit

            Although the VIE has a number of tax advantages, it is important to keep in mind that this contract is especially interesting for young graduates who want to have an international experience in a large French company in Canada. It does not allow you to work for a Canadian company and therefore live your international experience at 100%!

            The Young Professionals permit generally offers better salary prospects regarding salary negotiations and job advancement. The Young Professionals permit also allows you to be totally immersed in your international experience with a local contract and access to Canadian health insurance. For us, the Young Professionals permit is the big winner of the game!

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