Are you hoping to get a pay raise next year? Well, you’re in luck.
According to a new report, Canadian organizations are “planning fairly substantial salary increases” in 2024.
Normandin Beaudry, an actuarial consulting service, revealed its 13th annual Salary Increase Survey on Tuesday, and the results are promising for employees in Canada.
The report found that Canadian workers could see an average pay increase of 3.6% in 2024.
“While a recession remains a possibility in the coming months, organizations are planning on granting increases in excess of 3% for a third year in a row,” said Darcy Clark, senior principal of compensation at Normandin Beaudry.
Close to 700 companies across Canada took part in the survey. Normandin Beaudry says that 43% of these employers plan to grant an average additional budget of 1% to salary increases for the coming year.
According to the report, securing supplementary budgets has been a trend in recent years, driven by the uncertain economic landscape and competitive job market.
“With these additional funds, organizations have more leeway to address the pressure brought on by labour shortage by making strategic adjustments throughout the year to retain employees in critical roles, differentiate the compensation of top performers, or accelerate the salary progression of certain employees,” explains the report.
Industries that have led the pack regarding pay raises include the professional, scientific and technical services sectors.
They reported the highest actual salary increase budget of 4.8% for 2023.
For 2024, the following sectors are setting the pace with higher-than-average salary budget increases:
- Professional, scientific and technical services: 3.9%
- Real estate, rental and leasing: 3.9%
- High technology: 3.9%
- Pharmaceutical and biotechnology: 3.8%
- Durable goods manufacturing: 3.8%
- Accommodation and food services: 3.7%
For those worried about pay freezes in the coming year, Normandin Beaudry says only 2% of companies plan to implement that.
“These particularly low numbers are most likely due to the ongoing labour shortage and high inflation, as salary freezes usually range from 3% to 5%,” reads the report.
A pay increase is most likely top of mind for most Canadians struggling with the country’s cost of living crisis.