Average Salary in Canada 2023

Table of Contents

How much money can you expect to earn if you work in Canada?

The average annual salary for a worker in Canada is roughly $120,000 CAD. The lowest average pay is 30,200 CAD, while the highest is 534,000 CAD.

With housing, transportation, and other amenities included, this is what the typical person makes in a year. The earnings potential of many professions varies enormously.

To make a more informed decision about your future, it’s essential to understand how much money you can expect to earn in your chosen field.

Canada’s Salary Structure

Salary Range

There is a wide variety of salary options available in Canada, starting at 30,200 CAD per year and going up to 534,000 CAD per year. The average salary in Canada is around 70,000 CAD per year.

The median wage is when half of the workers in an occupation earned more than that amount and half earned less. The median wage is different from the average wage, the sum of all workers’ wages divided by the number of workers.

Median Pay

The median wage is 112,000 CAD per year, which indicates that 50% of the population earns less than this amount, while 50% earns more. The median wage for all workers in Canada is about 30,200 CAD per year.

The lowest 10% of earners make less than 20,800 CAD per year, while the highest 10% earn more than 208,000 CAD per year.

In terms of hourly wages, the median wage is 54.32 CAD per hour. This means that 50% of the population earns less than this amount, while the other 50% earns more. The median wage for all workers in Canada is about 21.00 CAD per hour.

The lowest 10% of earners make less than 10.00 CAD per hour, while the highest 10% earn more than 103.00 CAD per hour.

Percentiles

75% of the population earns more than 64,200 CAD, while 25% earn less than 64,200 CAD. The top 10% of earners make more than 208,000 CAD per year.

The bottom 10% of earners make less than 20,800 CAD per year.

Regarding hourly wages, 75% of the population earns more than 30.86 CAD per hour, while 25% earn less than 30.86 CAD per hour.

The top 10% of earners make more than 103.00 CAD per hour. The bottom 10% of earners make less than 10.00 CAD per hour.

Is there a difference between a person’s average and median earnings?

Both are measures of central tendency, but they differ in how they are calculated and represented. Average earnings are calculated by adding up all the earnings and dividing by the number of people.

Median earnings are calculated by finding the middle value when all the values are sorted from highest to lowest.

There are a few reasons why median earnings may be a better measure than average earnings. First, median earnings are less influenced by outliers or values much higher or lower than the rest of the data set.

For example, if one person in a group of 10 earns $1 million, this would significantly increase the group’s average earnings but would have little impact on the median earnings. Second, median earnings provide a better representation of what most people in a group earn. In the previous example, the median earnings would be $50,000, representing what the other nine people in the group earn.

Several factors affect average earnings, including experience, education, industry, and location. Median earnings provide a more accurate picture of earnings for most people in a given group.

Comparative Wages Based on Years of Experience in Canada

What is the progression of a person’s wage over time?

Salaries in Canada generally follow an S-shaped curve over the course of a person’s career. Wages tend to be low at the start of a person’s working life and then increase steadily until they reach a peak around age 40.

After this point, wages usually plateau or even decrease slightly.

Canadian workers earn more with each year of experience, but the biggest jumps in salary come early in a person’s career.

The average worker sees their wage increase by about 16% after one year on the job and 24% after five years. After 10 years, the average worker can expect to earn 30% more than they did when starting out.

The most substantial raises tend to occur between the first and fifth years of employment, with smaller increases thereafter. Of course, there is considerable variation depending on the individual’s occupation, industry and other factors.

The following table shows the average salaries for workers in various stages of their careers in Canada:

1-5 years – 48,000 CAD
5-10 years – 60,000 CAD
10-20 years – 72,000 CAD
20+ years – 84,000 CAD

As you can see, salaries increase with each year of experience, but the most significant gains are made in the early years of a person’s career. After 10 years of experience, workers can expect to earn about 30% more than they did when starting out.

There is significant variation depending on the individual’s occupation and other factors, but these are general trends.

Comparative Salary Analysis by Education in Canada

How does your degree of education affect your salary?

Canadian workers with a high school diploma earn an average of $36,299 CAD per year, while those with a bachelor’s degree earn $65,249 CAD per year on average – nearly double the salary!

Interestingly, workers with some college education but no degree earn about the same as those with only a high school diploma.

The more educated you are, the higher your salary will be. However, many other factors affect earnings, such as occupation, experience and geographical location.

The following table shows the average salaries for various educational levels in Canada:

High school diploma: 36,299 CAD
Some college, no degree: 37,180 CAD
Bachelor’s degree: 65,249 CAD

As you can see, workers with a high school diploma earn an average of $36,299 CAD per year, while those with a bachelor’s degree earn $65,249 CAD per year on average – nearly double the salary!

The more educated you are, the higher your salary will be. However, many other factors affect earnings, such as occupation, experience and geographical location.

Comparative Wage Analysis by Gender in Canada

On average, men workers in Canada earn 5% more than their female colleagues. This difference exists in all Canadian provinces, except Prince Edward Island and Quebec, where women earn slightly more than men.

The average hourly wage for a man working in Canada is 27.29 CAD, while a woman earns 25.92 CAD on average. When we compare these hourly wages to the national median hourly wage of 22.50 CAD, it is clear that both men and women earn relatively high salaries in Canada.

Take note that these are just averages, and individual variation will always be based on factors such as experience, education, industry, etc.

Comparing the average salaries of men and women in Canada by province, the wage gap is the largest in Alberta and Saskatchewan, where men earn 9% more than women. In Ontario, the wage gap is slightly smaller at 5%.

The smallest wage gap between men and women can be found in Quebec and Prince Edward Island, where women earn 1% more than their male counterparts.

Overall, it seems that men tend to earn more money than women in Canada across all provinces. However, there are some exceptions to this rule. In general, though, both sexes earn higher salaries than the rest of the world.

Percentage of Annual Salary Increases in Canada

What are the average wage increases per year? Are increases given to employees on a more regular basis?

Every 15 months, Canadian workers expect an average 9.1% rise in their home pay. On average, employees earn 55,586 CAD per year, up from 50,964 CAD in 2017. With an average salary of 34,000 CAD, Canada’s wage growth exceeds that of the United States.

Regarding raises, a significant portion of Canadian workers is in line for more regular increases. Nearly one-third (32%) of respondents said they receive salary boosts yearly.

And although the frequency and size of those annual bumps vary depending on individual circumstances, employers are generally providing more frequent pay hikes than in previous years.

This also depends on the company’s size, with larger organizations more likely to offer annual bumps than smaller ones. 40% of those employed by organizations with 500 or more employees said they get yearly raises, compared to just 27% of workers at small businesses.

Interestingly, there’s also a gender gap regarding how often workers receive raises. 37% of women said they get annual salary increases, compared to just 28% of men.

The data also shows that Canadians are getting more significant raises than their American counterparts. The average U.S. salary increase is 3.0%, while the Canadian average is nearly double that at 5.7%.

Regarding geography, there’s a big difference between salary hikes in different parts of the country. Workers in Alberta and Saskatchewan see the most significant increases, at 7.3% and 6.7%, respectively. By comparison, those in Atlantic Canada are getting smaller raises, with an average increase of just 4.6%.

So what does this all mean for Canadian workers? It’s good news for those who are due for a raise, as salary increases appear to be on the rise. And although there’s still a gender gap regarding how often workers get raises, women are starting to catch up to their male counterparts.

There’s also a big difference between salary hikes in different parts of the country, with workers in Alberta and Saskatchewan seeing the biggest increases.

Rate of Annual Growth by Industry in 2022

Healthcare – 8%
Education – 3%
Business and Management – 5%
Information Technology – 9%
Natural Sciences and Engineering – 6%

As you can see, the healthcare industry is expected to see the highest rate of growth in salaries, with an average salary of 85,000 CAD. The education industry is expected to see a more modest growth rate, with an average salary of 75,000 CAD.

Meanwhile, the business and management sector is expected to see a healthy 5% growth rate, with an average salary of 95,000 CAD. The information technology sector is also expected to see a robust 9% growth rate, with an average salary of 105,000 CAD.

Finally, the natural sciences and engineering sector are expected to see a more moderate 6% growth rate, with an average salary of 115,000 CAD.

Rate of Salary Increase in Canada based on Experience Level

Junior-level workers in Canada are set to receive the highest pay increase in 2022, at 3.7%. Senior-level workers follow this at 3.5%, and intermediate-level workers at 3.1%.

According to a new report from Mercer, the average salary in Canada is expected to rise by 2.9% in 2022.

This increase is slightly higher than the predicted global average salary increase of 2.6%. Canada ranks ninth out of the top 10 countries surveyed regarding expected salary increases.

While salary increases may be slowing down globally, they are still outpacing inflation, which is predicted to be 2.3% in Canada in 2022.

So what does this mean for Canadian workers? A person earning an average salary of $50,000 can expect their pay to increase by about $1,450 next year.

Of course, not all workers will see their salaries rise at the same rate. Salary increases will vary based on experience level, industry and location.

For instance, junior-level workers in Canada are set to receive the highest pay increase in 2022, at 3.7%. Senior-level workers follow this at 3.5%, and intermediate-level workers at 3.1%.

The industries that are expected to see the most significant salary increases in Canada are information technology (3.6%), life sciences (3.5%) and professional services (3.4%).

Payout Ratios for Incentive Awards in Canada

How frequently and how much are bonuses awarded?

More than two-thirds of polled employees in Canada reported receiving at least one sort of monetary bonus in the preceding year, while just 48% reported receiving no bonuses or incentives.

Bonuses received by employees ranged from 3% to 5% of their yearly salaries. In general, private-sector workers were more likely than public-sector employees to report receiving bonuses.

When looking at specific industry groups, the following sectors were most likely to give out bonuses:

Information and cultural industries: 82%
Finance and insurance: 78%
Real estate and rental: 76%
Manufacturing: 74%
Mining, quarrying, and oil and gas extraction: 71%

The median bonus amount awarded was $1,500. The highest reported bonus was 50,000 CAD while the lowest was 100 CAD. When bonuses are given out, they significantly supplement workers’ incomes.

Varieties of Bonuses

Individual Bonuses Determined by Work Performance

Individual bonuses are given to employees who have exceeded expectations or achieved significant milestones. This type of bonus may be given as cash, stocks, or other benefits.

Group Bonuses

Group bonuses are given to teams of employees who have performed well. This type of bonus may be given as cash, stocks, or other benefits. This is given to employees who have contributed to the company’s success.

Retention Bonuses

Retention bonuses are given to employees who agree to stay with the company for some time. This type of bonus may be given as cash, stocks, or other benefits.

Signing Bonuses

Signing bonuses are given to new employees who agree to work for the company for a specific time. In Canada, signing bonuses are subject to taxes. This type of bonus may be given as cash, stocks, or other benefits.

Comparison of Bonuses for Different Careers

What aspects of a job make it deserving of a high base wage and desirable bonuses?

Canadian employees’ salaries differ based on their occupation. Some jobs receive better bonuses compared to others.

The following are some of the careers that get higher bonuses in Canada:

Sales and Business Development

This is a field where employees are often rewarded for their performance. They typically receive bonuses based on the number of sales they make or the amount of revenue they generate for their company.

Financial Services

Employees in this industry often receive bonuses to encourage them to stay with their firm and continue to grow its business. Many financial institutions offer bonus programs worth tens of thousands of dollars.

Technology

Workers in the technology sector often receive stock options as part of their compensation package. In addition, they may also receive performance-based bonuses. These bonuses can be valuable, especially if the company’s stock price increases over time.

The following are some of the careers that typically do not receive high bonuses in Canada:

Administrative and Clerical

These jobs tend to be lower-paying and do not generally offer incentives for employees to stay with the company or perform at a high level.

Customer Service

Although customer service representatives may receive commissions for sales they generate, they typically do not receive bonuses.

Factory Workers

Many factory workers are paid hourly wages and do not receive bonuses. However, some companies may offer production-based bonuses to workers who meet specific targets.

Seniority Level Bonuses in Canada

Senior-level workers in Canada are usually rewarded with bonuses. The average annual bonus for a senior-level worker is 8,491 CAD. This ranges from 1,000 CAD for entry-level positions to upwards of 50,000 CAD for high-level executives.

Bonuses are not always guaranteed and may vary depending on the company’s performance. They are typically paid out yearly, but some companies may offer them more or less frequently.

Incentives and Commissions in Canada

In addition to regular salary payments and bonuses, many workers in Canada also receive incentives and commissions. Incentives are typically given for meeting sales targets or other goals set by the employer.

Commission payments are typically based on a percentage of sales made by the employee.

Pay for High-Potential Careers

Business Planning

Business Analyst – 154,000 CAD
Business Development Manager – 191,000 CAD
Project Manager – 148,000 CAD
Business Management Advisor – 129,000 CAD
Product Manager – 140,000 CAD
Marketing Manager – 145,000 CAD
Sales Manager – 162,000 CAD
Operations Manager – 139,000 CAD

Human Resource

Human Resources Generalist – 115,000 CAD
Training and Development Specialist – 114,000 CAD
Compensation and Benefits Specialist – 118,000 CAD
Recruitment Specialist – 112,000 CAD

Information Technology

Information Technology Project Manager – 152,000 CAD
Applications Developer – 121,000 CAD
Systems Analyst – 119,000 CAD
Database Administrator – 117,00 CAD
Network and Computer Systems Administrator- 116,000 CAD
Web Developer – 113,000 CAD

Creative

Art Director – 161,000 CAD
Graphic Designer – 106,000 CAD
Multimedia Artist and Animator – 92,000 CAD
Writer and Editor – 103,000 CAD

Healthcare

Medical and Health Services Manager – 139,000 CAD
Nurse Anesthetist – 135,000 CAD
Physician Assistant – 105,000 CAD
Dentist- 123,000 CAD
Pharmacist – 121,000 CAD

Law

Paralegal and Legal Assistant – 119,000 CAD
Lawyer – 115,000 CAD

Education

Elementary School Teacher – 114,000 CAD
High School Teacher – 109,000 CAD
Postsecondary Teacher – 101,000 CAD
Instructional Coordinator – 95,000 CAD

Comparison of Salary by City

Here is the breakdown of salaries by the city in Canada:

Toronto – 134,000 CAD
Montreal – 87,000 CAD
Vancouver – 95,000 CAD
Calgary – 104,000 CAD
Ottawa – 94,000 CAD
Vaughan – 132,000 CAD

Salary by State in Canada

Alberta – 129,000 CAD
British Columbia – 122,000 CAD
Manitoba – 115,000 CAD
New Brunswick – 90,000 CAD
Newfoundland and Labrador – 97,000 CAD
Nova Scotia – 93,000 CAD
Ontario – 121,000 CAD
Quebec – 87,000 CAD
Saskatchewan – 111,000 CAD

Hourly Rate of Pay on Average in Canada

The average hourly salary in Canada is 57 CAD. This indicates that the typical Canadian makes around 57 CAD per hour of employment.

The median hourly wage is slightly higher at 61 CAD. This means that half of all workers in Canada earn more than 61 CAD per hour, and half earn less.

The average salary for full-time work is also 57 CAD per hour. For part-time work, the average is 36 CAD per hour.

There is a significant difference between the two, indicating that those who can secure full-time employment tend to make much more money than those who can only find part-time jobs.

Comparison of Wages in the Public and Private Sectors

Across the board, public sector workers in Canada earn 4% more per year than their private-sector colleagues. In some professions, the gap is much larger. For example, public sector salaries are 15% higher on average among health care professionals.

The same is true for education professionals, whose average salary in the public sector is 11% higher.

There are several reasons for this discrepancy. First, the public sector offers greater job security and stability. This appeals to individuals with families who need to know they can count on a steady income.

Second, the public sector often provides better benefits than the private sector, including pensions and healthcare. Finally, many feel that working in the public sector is more socially rewarding than working in the private sector.