Highlights of Morneau Shepell’s annual salary projection survey for 2020
Morneau Shepell Limited recently released the results of its 37th annual survey on salary projections for 2020 (the “Survey”). The Survey results reflect input from 506 organizations employing more than one million non-unionized employees and cover a broad array of possible increases in salaries, including salary structure, length of service, cost of living and merit pay.
The results from the Survey revealed the following:
- Base salaries in Canada are expected to increase by an average of 2.7% in 2020, a slight increase over the actual average increase in 2019 of 2.6%.
- Employees’ purchasing power is expected to increase, as the anticipated 2.7% salary increase will be more than the projected rate of inflation by the Bank of Canada of 2% in 2020.
- Despite predictions of slowed economic growth in 2020, employers appear to be optimistic as to economic growth.
- Projected base salary increases have risen over the past several years, with actual results equal to or exceeding projections.
- Employers in Newfoundland and Labrador are expecting the highest increases in salaries at 3.1%, mainly due to increased oil production. In 2019 and prior years, British Columbia and Alberta were the provinces with the highest projected increases.
- Employers in British Columbia are expecting salary increases slightly higher than the projected average at 2.8%, while employers in Alberta, Ontario and Quebec are expecting the projected average of 2.7%. The projected increases in salaries range from 2.5 to 2.9% in the other provinces.
The Survey is available for download on Morneau Shepell’s website.