Employers across Canada are planning to offer workers an average annual salary increase of
4.2% next year, which is well below the current inflation rate of 7%.
A report by consulting firm Eckler found that Canadian employers are juggling inflationary
pressures, rising interest rates, and an extremely tight labour market when deciding on
compensation.
British Columbia, Ontario and Quebec are projecting the highest average salary increases, with
the Yukon, Nunavut and Prince Edward Island projecting the lowest.
The largest average salary increases are expected to be in the technology sector at 5.4%, while
the smallest increases are forecast to be in education, agriculture, and hospitality.
However, nearly half (44%) of organizations surveyed said they remain undecided about salary
increases in 2023.
Still, the survey demonstrates that most Canadian companies are planning to continue using
compensation as a key driver of their talent management.
