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Average Salaries in Canada: Key Data and Trends
Canada has become an increasingly favoured destination for immigrants due to its reputation for high salaries, political stability, robust employment, and high quality of life.
This extensive guide provides crucial data and insights into average salaries in Canada’s provinces, territories, industries, occupations, and demographics.
National Average Salary in Canada
According to Statistics Canada, the average salary for full-time employees across Canada is $59,300 annually as of 2022. On the weekly average, full-time employees earn approximately $1,140 per week. (Source)
These figures represent a 5.4% increase compared to the previous year, indicating rising wages across the country.
Several factors account for differences in salary levels across Canada’s diverse labour force, including:
- Education and skills
- Years of experience
- Industry
- Geographic location
- Union membership
- Company size
- Type of role
- Negotiation skills
- Labour supply and demand
Part-time workers earn less on average than full-time employees. Overtime, tips, bonuses, and commissions also enhance earnings above base salary levels.
Average Salaries by Industry in Canada
Canada’s diverse industrial landscape leads to major differences in average pay across sectors. Based on Statistics Canada data, here are the key industries with the highest and lowest earning potential in 2020:
Highest-Paying Industries
| Industry | Average Annual Salary |
| Mining, quarrying, oil and gas | $113,506 |
| Utilities | $101,531 |
| Finance and insurance | $76,843 |
| Professional, scientific and technical services | $76,078 |
| Public administration | $75,800 |
Lowest-Paying Industries
| Industry | Average Annual Salary |
| Arts, entertainment and recreation | $40,242 |
| Educational services | $58,343 |
| Retail trade | $34,503 |
| Accommodation and food services | $22,878 |
| Healthcare and social assistance | $52,889 |
The highest-paying sector of mining, oil and gas extraction relies heavily on remote camp work and attracts premium wages. Professional services also pay well due to the high demand for niche expertise like law, accounting, and consulting.
Public administration offers attractive salaries with benefits due to its concentration on government and public service roles. Low-paying industries are characterized by high part-time and entry-level work with minimal requirements.
When looking at growth, arts and entertainment saw the highest salary increase at 26.3% from 2019-2020. Real estate and leasing also grew significantly at 14.6%, benefiting from hot housing markets.
Highest Paying Jobs in Canada
While sector-wide averages provide helpful insight, looking at specific occupations unveils the very top salaries in Canada. Here are some of the professions with the highest earning potential nationwide:
| Job | Average Annual Salary |
| Surgeon | $200,000+ |
| Dentist | $140,000+ |
| Pilot | $111,300 |
| Lawyer | $100,130 |
| IT Manager | $90,566 |
| Architect | $90,315 |
| Sales Manager | $83,598 |
As demonstrated, the highest-paid jobs are concentrated in medicine, senior management, and select technical fields like engineering. The premium wages reflect extensive training requirements, demand for skills, seniority of positions, and the profitability of industries like oil and gas or finance.
However, salaries can vary based on location, firm size, bonuses, overtime, and other factors. The most lucrative jobs are often found in major metro regions like Toronto, Vancouver, Calgary, and Montreal.
Gender Income Gap in Canada
Despite progress toward gender equality in recent decades, a persistent income gap between men and women remains evident across Canada.
Some key statistics on gender wage discrepancies include:
- Women earn $0.89 for every dollar men earn based on median hourly wages, a gap of approximately 11%.
- For annual earnings, the gap widens to women making only $0.76 for every $1 made by men.
- The gap is generally narrower for younger cohorts, indicating gradual improvement.
- However, women in top executive roles still earn 68 cents for every dollar their male peers earn.
- For Indigenous women, the gap compared to non-Indigenous men is even more substantial at 35%.
Source: https://www.dundaslife.com/blog/average-income-in-canada
Several factors perpetuate the gender income gap, including:
- Occupational segregation: Women are overrepresented in lower-paying fields like healthcare, education, and social services.
- Parental leave and caregiving impacts: Women’s careers are often interrupted for child-rearing.
- Hiring and promotion biases: Women are less likely to be promoted into higher-paying management roles.
- Discrimination: Sexist attitudes and unconscious bias persist in workplaces.
- Contract and part-time work: Women are likelier to engage in more precarious employment.
Ongoing efforts are needed to dismantle systemic barriers women face in earning equal pay and achieving pay equity with men. Government, employers, and society must actively address cultural norms, hidden biases, and barriers to advancement underlying the gender income gap in Canada.
Pay Gap Between Indigenous and Non-Indigenous Workers
Canada’s Indigenous population also faces significant income disparities compared to non-Indigenous workers. Some key indicators of this payroll gap include:
- The gap is most pronounced in rural and remote areas, where Indigenous people earn about half as much as non-Indigenous locals.
- In cities, the gap is smaller but still substantial, with Indigenous workers making 25% to 35% less than their non-Indigenous colleagues.
- Indigenous men tend to earn more than Indigenous women but still significantly less than non-Indigenous men.
- The gap narrows for those with university degrees but remains noticeable.
Systemic discrimination, lower education levels, lack of local job opportunities on reserves, and undervaluation of Indigenous skills underpin the payroll divide. Efforts to enhance education access, increase skills training, and address discrimination against Indigenous peoples can help close this gap.
Average Annual Earnings Growth Trends
As the economy evolves, average earnings in Canada change over time. Examining growth trends reveals whether living standards and purchasing power are improving or declining.
Some key historical indicators and projections include:
- From 2019 to 2020, average weekly earnings for all employees rose 4.5% across Canada, a healthy pace of growth.
- However, when accounting for inflation, real wage growth was a more modest 1.1%, indicating incomes are not drastically outpacing living costs.
- Going forward to 2024, average weekly earnings for full-time employees are projected to increase 10% cumulatively from 2022 levels, for an average annual growth of around 2.5%.
- If inflation hovers around 2% over this period, it will erode real wage gains moderately.
Multiple macroeconomic factors influence the trajectory of future wage growth in Canada, including:
- Inflation rates: If high inflation persists, it may limit real income gains.
- Labour market conditions: Lower unemployment and higher vacancies support faster wage growth.
- Productivity levels: Higher efficiency and output allow firms to increase compensation.
- Industry performance: Strong sectors boost wages while declining ones exert downward pressure.
- Government policies: Changes to minimum wage in Canada, taxes, and benefit programs impact earnings.
Average Annual Salary By Province and Territory
British Columbia
- Average Annual Salary: $53,416
- Job Sectors: Forestry, mining, oil and gas, technology, tourism
- Income Growth: 5.12% from 2021-2022
With its thriving technology hub in Vancouver and wealth of natural resources, British Columbia offers among the highest average salaries in Canada. However, housing affordability in Vancouver somewhat lowers real wages.
Alberta
- Average Annual Salary: $61,865
- Job Sectors: Oil and gas, construction, manufacturing, agriculture
- Income Growth: 3.6% from 2021-2022
Alberta boasts the highest average wages in Canada outside the territories, buoyed by its robust oil and gas sector alongside manufacturing, agriculture, and construction. However, amidst recent economic challenges, the province saw slower income growth at just 3.6%.
Saskatchewan
- Average Annual Salary: $54,371
- Job Sectors: Agriculture, mining, energy, manufacturing
- Income Growth: 5.65% from 2021-2022
Saskatchewan’s agriculture, mining, energy, and manufacturing sectors support average annual earnings of $54,371. Incomes grew 5.65% from 2021 to 2022, indicating solid wage growth premised on the province’s commodities-based economy.
Manitoba
- Average Annual Salary: $49,661
- Job Sectors: Agriculture, manufacturing, mining, hydroelectricity
- Income Growth: 17.9% from 2021-2022
Manitoba’s average salary of $49,661 is lower than that of its western neighbours but still supported by manufacturing, mining, agriculture, and hydropower. A spike of 17.9% in income growth in 2022 points to a strengthening provincial economy.
Ontario
- Average Annual Salary: $55,524
- Job Sectors: Manufacturing, financial services, healthcare, engineering
- Income Growth: 5.23% from 2021-2022
As Canada’s economic engine, Ontario workers earn an average of $55,524. They are concentrated in lucrative sectors like manufacturing, finance, healthcare, and technology, primarily centered in the Greater Toronto Area.
Quebec
- Average Annual Salary: $51,735
- Job Sectors: Manufacturing, engineering, banking/finance, IT
- Income Growth: 3.03% from 2021-2022
Quebec’s average annual salary of $51,735 is supported by strong manufacturing, engineering, finance, and tech sectors. Montreal serves as the economic hub. Moderate income growth of 3.03% in 2022 reflects Quebec’s recent economic resurgence.
New Brunswick
- Average Annual Salary: $49,511
- Job Sectors: Manufacturing, agriculture, fisheries, forestry
- Income Growth: 12.34% decrease from 2021-2022
New Brunswick reported a substantial 12.34% decline in average incomes, now averaging $49,511 annually. Rural economic decline has severely hampered wages in manufacturing, fisheries, farming and forestry sectors.
Nova Scotia
- Average Annual Salary: $48,470
- Job Sectors: Fishing, agriculture, manufacturing, forestry
- Income Growth: 5.45% decrease from 2021-2022
With average earnings of $48,470, Nova Scotia was also impacted by economic headwinds, with wages dropping 5.45% in 2022. Agriculture, fishing, manufacturing and forestry are the leading provincial employers.
Prince Edward Island
- Average Annual Salary: $45,912
- Job Sectors: Agriculture, fishing, tourism
- Income Growth: 2.7% decrease from 2021-2022
P.E.I. saw a slight 2.7% salary decline in 2022, averaging $45,912 annually. As Canada’s smallest province, agriculture, fishing, and tourism dominate the seasonal, service-oriented economy.
Newfoundland and Labrador
- Average Annual Salary: $55,508
- Job Sectors: Fishing, mining, oil and gas
- Income Growth: 4.2% from 2021-2022
Major resource industries like mining, oil, fishing, and mineral extraction support Newfoundland and Labrador’s average salary of $55,508. A 4.2% income increase in 2022 indicates a strengthening provincial market.
Yukon
- Average Annual Salary: $61,812
- Job Sectors: Mining, oil and gas extraction, forestry, tourism
- Income Growth: 8.73% from 2021-2022
Remotely located Yukon reported strong 8.73% salary growth in 2022, averaging $61,812 annually. Mining and oil/gas drive higher northern wages but require acceptance of remote camp work.
Northwest Territories
- Average Annual Salary: $65,017
- Job Sectors: Mining, oil and gas, government services
- Income Growth: 1.48% decrease from 2021-2022
The Northwest Territories’ small but lucrative economy produces an average salary of $65,017. Mining and oil/gas operations yield high northern wages but require fly-in/fly-out camp work, while government services offer stable public sector employment. A minor 1.48% income decrease was reported in 2022.
Nunavut
- Average Annual Salary: $87,355
- Job Sectors: Mining, public administration
- Income Growth: 5.13% decrease from 2022-2022
Nunavut has Canada’s highest average salary, at $87,355, supported primarily by lucrative mining jobs and public sector roles serving the territory’s small population. However, a 5.13% wage decline was reported in 2022, indicating softened labour market conditions.
Here is the summary table:
| Province/Territory | Average Annual Salary | Job Sectors | Income Growth (2021-2022) |
| British Columbia | $53,416 | Forestry, mining, oil and gas, technology, tourism | 5.12% increase |
| Alberta | $61,865 | Oil and gas, construction, manufacturing, agriculture | 3.6% increase |
| Saskatchewan | $54,371 | Agriculture, mining, energy, manufacturing | 5.65% increase |
| Manitoba | $49,661 | Agriculture, manufacturing, mining, hydroelectricity | 17.9% increase |
| Ontario | $55,524 | Manufacturing, financial services, healthcare, engineering | 5.23% decrease |
| Quebec | $51,735 | Manufacturing, engineering, banking/finance, IT | 3.03% increase |
| New Brunswick | $49,511 | Manufacturing, agriculture, fisheries, forestry | 12.34% decrease |
| Nova Scotia | $48,470 | Fishing, agriculture, manufacturing, forestry | 5.45% decrease |
| Prince Edward Island | $45,912 | Agriculture, fishing, tourism | 2.7% decrease |
| Newfoundland and Labrador | $55,508 | Fishing, mining, oil and gas | 4.2% increase |
| Yukon | $61,812 | Mining, oil and gas extraction, forestry, tourism | 8.73% increase |
| Northwest Territories | $65,017 | Mining, oil and gas, government services | 1.48% decrease |
| Nunavut | $87,355 | Mining, public administration | 5.13% decrease |
Comparing Salaries and Cost of Living in Canada
While average salaries provide helpful benchmarks, weighing earnings against the relative cost of living is crucial to assess Canadians’ real purchasing power and standard of living.
Some insights on incomes adjusted for living costs include:
- While Canada’s average annual salary of approximately $59,300 as of 2022, Canadians enjoy universal healthcare coverage, boosting real disposable income.
- Canadian salaries go significantly further when factoring in free public K-12 education and affordable post-secondary tuition compared to the US.
- After converting currencies and accounting for taxes, childcare, transportation, and housing costs, the average Canadian salary affords most a comfortable, middle-class lifestyle.
- However, major cities like Toronto and Vancouver, with hot real estate markets and steep housing costs lower real wages, highlight income disparities.
Internationally, Canada boasts higher average earnings adjusted for living costs than economically comparable nations like the United Kingdom, France, and Australia. Salaries are on par with countries like Germany but still trail top-tier destinations like Switzerland and the United States in nominal terms. However, Canada’s progressive social programs help partially offset this gap for the average worker.
Factors Affecting Salaries in Canada
While national and provincial averages provide helpful benchmarks, various factors intersect to impact individual salary levels across Canada’s diverse labour force. Understanding these key determinants provides greater insight into the drivers of pay variance.
Education and Skills
Higher levels of education and specialized skills correlate strongly with higher earnings. Workers with university and college degrees or diplomas in high-demand fields generally earn more than those with only a high school education. Specific expertise also commands greater compensation.
Years of Experience
Salaries increase with each year of accumulated experience and tenure in a particular role or industry. Seasoned employees develop more in-demand abilities and organizational knowledge. Some jobs also have structured pay bumps tied to the length of employment.
Industry
Given major differences in profitability, value generation, risk, and skill requirements, salaries diverge enormously between industries. Finance, technology, healthcare, and engineering sectors provide above-average compensation, while retail, food service, and recreation offer lower pay.
Geographic Location
Where workers live significantly impacts earnings potential. Major urban centers with high living costs also offer more high-paying jobs to compensate. Economically vibrant provinces like Alberta and Ontario boast higher provincial wage averages.
Union Membership
Unionized employees typically negotiate higher base pay and benefits through collective bargaining agreements than non-unionized staff in similar roles. About 30% of Canadian workers belong to unions.
Public vs. Private Sector
The private sector generally offers higher pay potential, particularly at senior levels. Profit-driven firms can provide higher compensation to attract and retain talent. Canada’s largest 500 companies report average salaries 20-30% above public sector levels.
Company Size
In general, larger companies have greater resources for higher salaries and more generous benefits than small businesses. Multinational corporations headquartered in Canada offer very lucrative compensation packages.
Management vs. Non-Management
Managerial and professional positions earn substantial pay premiums relative to administrative or frontline service roles. The highest salaries are concentrated at senior executive levels responsible for overall strategy and operations.
Supply and Demand Conditions
When demand is high, but supply is low for specific skill sets or roles, salaries escalate accordingly. Similarly, economic boom periods tighten labor markets and place upward pressure on wages.
Salary Growth Projections and Economic Outlook
The data indicates most provinces and territories experienced healthy wage growth in 2021 and the first half of 2022. However, rising inflation and anticipated economic slowdown could hamper incomes over the next 1-2 years.
Canada’s strong economic fundamentals point to a positive long-term salary outlook, supported by skilled immigrant inflows and growth in high-paying sectors like technology, healthcare, and professional services. Internationally competitive wages are projected to help attract global talent and maintain resilient domestic consumer spending.
With targeted education, sought-after skill development, and strategic urban/provincial job searches, immigrants to Canada can capitalize on high salaries relative to living costs. While risks exist, the 2024 horizon remains bright for Canadian wage growth and career earnings potential.
FAQs on average salaries in Canada
What is the average salary in Canada?
The average salary for full-time employees in Canada is around $59,300 annually as of 2022, according to Statistics Canada. Salaries vary greatly by region, sector, experience level and other factors.
How much do engineers make in Canada?
The average salary for engineers in Canada is around $93,634 per year. However, it can range from $72,500 for entry level engineers to $122,518 for senior engineering roles.
Which province has the highest average salary in Canada?
Nunavut has the highest average annual salary in Canada at $87,355 as of 2021, followed by Northwest Territories at $77,670. These northern territories have lucrative natural resource jobs that pull up average wages.
Which jobs pay the most in Canada?
The highest paying jobs in Canada are generally concentrated in medicine, engineering, technology, finance and senior management. Examples include specialist physicians, dentists, petroleum engineers, IT managers and senior finance managers.
What factors affect salary levels in Canada?
Education, skills, experience, industry, location, union membership, company size, occupation type, negotiation skills and labor supply/demand dynamics all influence individual salary levels across Canada.
How does cost of living impact salaries in Canada?
Major metro regions with high costs of living like Toronto, Vancouver and Calgary generally have higher average salaries to compensate. However, this also reduces real wage purchasing power in these cities.
How do Canada’s average salaries compare internationally?
Canada's average salaries adjusted for cost of living are internationally competitive, outperforming peer countries like the UK and Australia. However, incomes trail top payers like the USA and Switzerland in nominal terms.
Which professionals have the highest salaries in Canada?
Specialist physicians, dentists, petroleum engineers, corporate executives, IT managers and senior finance managers are among the very highest paid professionals in Canada, generally earning over $130,000 annually.
How does minimum wage impact average salaries?
Minimum wage increases raise earnings for lower income Canadians but also put upward pressure on overall average salaries as businesses must maintain pay scales above rising wage floors.
Are public or private sector salaries higher?
Private sector workers generally earn higher salaries than public sector employees in Canada, especially at senior levels. Canada's 500 largest corporations pay 20-30% above public sector averages.