Transportation Recoverable Cost
Starting the first full day of employment calculate 10% of the gross earnings per pay period and retain that amount as a recoverable cost to you towards transportation. Do not exceed the maximum recoverable cost as per this chart below.
| Province
Ontario |
Maximum Transportation Recoverable Cost | Deduction | Route |
|---|---|---|---|
| Toronto | $620.00 | 10% of gross earnings per pay | Mexico/Toronto/Mexico |
| Ottawa | $627.00 | 10% of gross earnings per pay | Mexico/Toronto/Ottawa/Toronto/Mexico |
Mexico Extended Health Deduction
The extended health coverage for Mexican workers is paid by the worker. Employers are requested to deduct $1.05 per day seven (7) days a week from the workers pay. The insuring company is Great West Life Assurance Company and Cowan Group is the Broker. Employers are required to pay the full invoiced amount and recover only that amount equal to the workers duration of employment. IF any plus/minus dollar difference exists at the end of the employment period the Employer and Cowan Group will manage this between each.
Other Recoverable Cost for Mexico & Caribbean
A deduction for Other Recoverable Costs towards utilities is set at $2.68 per working day. A working day for the purpose of this deduction is to be such that a WORKER completes a minimum of four (4) hours of work in a given day. Said deductions withheld under this provision is to be made for the current pay period only.
| Province | Maximum Transportation Recoverable Cost | Deduction | Route |
|---|---|---|---|
| Toronto | $500.00 | 10% of gross earnings per pay | Caribbean/Toronto/Caribbean |
| Ottawa | $528.00 | 10% of gross earnings per pay | Caribbean/Toronto/Ottawa/Toronto/Caribbean |
ONTARIO F.A.R.M.S. ADMINISTRATION FEE
The F.A.R.M.S. administration fee of $45.00 + HST per worker arrival, or worker transfer is not a recoverable cost, therefore cannot be deducted from wages. Administration Fees must be received at the F.A.R.M.S. office before the order will be sent to the supply country. Administration fees are a processing fee and are not refundable.
2025 F.A.R.M.S. administration fee is $50.00 + HST per worker arrival or transfer.
RECOGNITION PAYMENT – Shall be paid every year, to WORKERS with 5 or more consecutive years of employment with the same EMPLOYER. Payable at the completion of the contract. This payment is subject to the applicable government tax deductions.
NOTE: Caribbean and Mexico have different deduction amounts, see following:
CARIBBEAN – The amount of $4.46 per week to a maximum of $142.55 (remains irrevocable after qualifying – applies only, to Caribbean countries).
MEXICO – The amount of $4.22 per week to a maximum of $135.16.
In the case of Mexican workers, the recognition payment applies only where provincial vacation pay is not applicable.
GROUND TRANSPORTATION
This is not a recoverable cost, therefore cannot be deducted from wages.
EMPLOYMENT STANDARDS
Employers are not authorized (as per Employment Standards) to make “ANY” payroll deductions other than those governed by the Province of Ontario or the Mexican / Caribbean employment contracts.