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Managed IT services or an in-house technician: what does it really cost in Québec and Ontario?

Salary, 2026 employer contributions and hidden costs: the full math for a Canadian SMB.
October 16, 2026 by
Managed IT services or an in-house technician: what does it really cost in Québec and Ontario?
Raffaele Abbraccio

A level-1 IT technician costs about $67,000 a year in Montréal and about $69,000 in Toronto once employer contributions are added, before tools and training. Managed IT services generally cost $75 to $175 per user per month in Québec, and $99 to $250 in the Toronto area. For a 25-employee SMB, the difference often runs into tens of thousands of dollars.

What an in-house technician really costs

1. Salary. According to Robert Half projections, a level-1 support technician earns $51,500 to $67,000 in Montréal (average about $60,200), and $54,500 to $71,000 in Toronto (average about $63,700). A systems administrator earns $78,800 to $117,600 in Montréal, and $83,400 to $124,500 in Toronto.

2. Employer contributions in 2026. On top of salary, the employer pays:

2026 contributionQuébecOntario
Pension plan (QPP in Québec, CPP in Ontario)6.30%5.95%
Employment Insurance1.82%2.28%
Parental insurance (QPIP)0.602%included in EI
Health tax (HSF in Québec, EHT in Ontario)1.65%0% under $1M payroll, 1.95% above
Workplace insurance (CNESST, WSIB)about 1.54%0.18% to 1.23% depending on sector
Labour standards0.06%none
Approximate totalabout 12%about 8% to 10%

For a technician at the market average, that comes to about $67,400 a year in Montréal and about $69,000 in Toronto. Elsewhere in Canada, CPP and Employment Insurance are the same as in Ontario; only the provincial health tax and workplace insurance vary.

3. Hidden costs.

  • Absences. About 20 days a year are paid but not worked in Québec (vacation, 8 statutory holidays, 2 paid absence days), and 19 in Ontario (vacation and 9 public holidays), plus 3 unpaid sick days. During that time, nobody manages your IT.
  • Replacement. According to Gallup, replacing an employee costs one-half to two times their annual salary, in recruitment and lost productivity.
  • Tools. Monitoring, backup, endpoint protection and licences: your technician needs them, and you pay for them.
  • The limits of one person. A level-1 technician is rarely also an expert in cybersecurity, servers and cloud.

What managed IT services cost

Providers that publish their prices generally charge $75 to $175 per user per month in Québec, and $99 to $250 in the Toronto area, for full management. These figures come from the providers’ own websites: there is no independent market study. A plan usually includes monitoring, support, updates, backup, Microsoft 365 management and employee onboarding and offboarding.

The math for a 25-employee SMB

Option (estimated annual cost)QuébecOntario
In-house level-1 technician (salary + contributions, no tools)about $67,400about $69,000
Managed services, low end of market$22,500 ($75/month)$29,700 ($99/month)
Managed services, high end of market$52,500 ($175/month)$75,000 ($250/month)
UpSystems, 360 Management plan ($75, unlimited support included)$22,500$22,500
UpSystems, Active Monitoring plan ($50) + support at $139.99/h$15,000 + hours$15,000 + hours

With the 360 Management plan, it would take about 75 users to reach the cost of a single level-1 technician, in Québec as in Ontario.

When an in-house technician makes sense

To be fair, in-house is sometimes the right choice.

  • You have complex in-house systems or on-site equipment (plant, warehouse) that need a daily presence.
  • You have more than about 150 employees and need a full-time IT manager.
  • In these cases, a hybrid model works well: your employee handles day-to-day work, and a provider handles monitoring, security and projects.

A tip from the Canadian Centre for Cyber Security: a managed service provider has privileged access to your systems. Require multi-factor authentication, log retention, return of your data at the end of the contract and service commitments in the contract.

The UpSystems advantage

  • Published prices among the lowest in the market. Essential $25, Active Monitoring $50, 360 Management $75 per user per month, shown on our website.
  • No surprise invoices. Unlimited support is included in 360 Management. On the other plans, the $139.99 hourly rate is known in advance.
  • A team, not one person. Level 1 to 3 technicians, with no gap during vacations.
  • Across Canada. Management and support are delivered remotely, in Québec and Ontario alike.
  • Measured after every ticket. A 4.6 out of 5 satisfaction score from the survey sent after every closed request.
  • 30-day satisfaction guarantee.

Book a 30-minute call: we run the numbers with yours. See our managed services plans.

Frequently asked questions

How much does an IT technician cost in Canada?

For level 1, about $51,500 to $67,000 in salary in Montréal and $54,500 to $71,000 in Toronto, plus about 12% in employer contributions in Québec and 8% to 10% in Ontario.

How much do managed IT services cost per user?

Generally $75 to $175 per month in Québec and $99 to $250 in the Toronto area. At UpSystems, $25 to $75, anywhere in Canada.

At how many employees should you hire an IT person?

There is no official threshold. Against the 360 Management plan, an in-house technician becomes competitive around 75 users, but one person covers neither vacations nor every area of expertise.

What is co-managed IT?

Your IT employee handles day-to-day work and a provider manages monitoring, security and projects.

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