It is expected that these Provinces will experience the largest average salary increases in 2023

Despite rising inflation, surging interest rates, recession risks, and a tight labour market, Canadian employers anticipate their highest salary increases in two decades.

Approximately 4.25 percent is projected for the national average base salary increase in 2022, excluding planned salary freezes, according to a report by Eckler Ltd. The actual salary increase for 2022 was lower than the projected one.  

As far as average salary increases are concerned, British Columbia, Ontario, and Quebec are expected to have the highest increases, while Yukon, Nunavut, and Prince Edward Island are expected to have the lowest increases.

At 5.4%, the technology sector is expected to experience the largest average salary increases. Agricultural, hospitality, education, health care, and health services are expected to see the smallest increases. Anand Parsan, Eckler's national compensation practice leader, said salary planning for 2023 is complex. Only one percent of Canadian organizations report planning to freeze salaries for the year 2023, according to survey results. 44 percent of organizations have not yet decided their salary budgets for 2023. The Robert Half report found that 57 percent of professionals feel underpaid, despite talent solutions and business consulting firms offering compensation advice.

In the research, 34% of workers plan to ask for a pay raise by the end of the year if they do not receive one, and 37% would consider switching jobs if they received a 10% pay raise.

A better starting salary is more likely to be requested by 47 percent of professionals today than it was a year ago.

According to the study, 42 percent of employers are increasing their starting salaries to attract talent.

Further, 79 percent of managers who updated base salaries for new hires also adjusted wages for existing employees.

This report by The Canadian Press was first published Sept. 27, 2022.