Are you hoping to get a pay raise in 2024? Well, you might be in luck.
In September last year, actuarial consulting service Normandin Beaudry released the results of its 13th annual Salary Increase Survey and reported that Canadian organizations were “planning fairly substantial salary increases” in 2024.
Close to 700 companies across Canada took part in the survey.
Analysts found that Canadian workers could see an average pay increase of 3.6% in 2024.
Historical Salary Increases 2024 (CNW Group/Normandin Beaudry)
Darcy Clark, senior principal of compensation at Normandin Beaudry, said that while a recession remained possible, organizations plan to grant increases of over 3% for a third year.
Forty-three percent of the employers surveyed planned to grant an average additional budget of 1% to salary increases for 2024.
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 the 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,” the report explained.
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% in 2023.
This year, 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 2024, Normandin Beaudry said 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%,” its report read.
A pay increase is most likely at the top of most Canadians’ minds as they struggle with the country’s cost of living crisis.
Canada’s unemployment rate has been a pain point for many. However, in February, Statistics Canada reported that the rate had witnessed its first decline since December 2022, falling 0.1 percentage points to 5.7%.
The federal minimum wage is also set to increase next month.
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