Highlights of Morneau Shepell’s Annual Salary Projection Survey for 2021
Morneau Shepell recently released the results of its 38th annual survey on salary projections for 2021 (the Survey). The Survey results reflect input from 889 organizations employing non-unionized employees.
Highlights from the Survey results include the following:
- Base salaries in Canada are expected to increase by an average of 2.5% in 2021 if salary freezes are excluded or 1.9% if salary freezes are included. This represents a slight decrease over the actual average increase in 2020 of 2.6% with salary freezes excluded, and a slight increase over the 1.6% average rate of increase when freezes are included.
- In 2020, 36% of organizations froze salaries, after only 2% originally planned to do so. Thirteen per cent of organizations plan to freeze salaries in 2021. In addition, 46% of organizations remain undecided.
- Employers in British Columbia and Quebec are expecting increases in salaries at the national weighted average of 2.5%, excluding salary freezes. British Columbia and Quebec were also the provinces with the highest actual salary increases in 2020 at 2.6%.
- The highest projected average salary increases in 2021 in Canada, excluding freezes, are expected to be in the Administrative and Support, Waste Management and Remediation Services at 3.0% and in the Professional, Scientific and Technical Services at 2.8%. Lower than average increases are expected in the Educational Services and Health Care and Social Assistance industries at 1.8%.
The Survey also reports on the financial impacts of the COVID-19 pandemic on Canadian employers. 22% of organizations indicated they suffered a severe decline in revenues (i.e., a reduction of over 30%). Another 34% of organization indicated a decline in revenues of 10-30%, and another 20% indicated a decline of less than 10%. The rest reported no impact or growth in revenues.