Average Income in Canada (Updated 2024)

• With an average annual salary of $64,850 in 2023 (Labour Force Survey), Canada is among the 20 top paying countries
• The national average salary is expected to go up by a 4.2% in 2024
• Sectors paying the highest weekly wages continue to be mining, quarrying, and oil and gas extraction
• ($2,242)
• The average yearly income of Canada’s top 1% salary earners was $579,100 in 2023 (Stats Can)
• With year-on-year growth of 5.2% in 2023, professional services, real estate, and finance and insurance services were the sectors that reported the highest raises
• Nunavut is the highest paying province or territory in Canada with an average annual salary of $87,355 in 2021 (Statistics Canada)

Average Canadian Household Income for 2024

The average annual salary in Canada in 2023 was $64,850. That number if divided by 12 brings the average monthly salary to $5,404. 

Ranked among the top 20 countries with the highest salary, Canada is known for its high quality of life, political stability, and job security for families. All of this makes it a mecca for professionals and top global talents. 

Median Income of Canada

The table shown below lists the median income in Canada by location in 2021 and 2022. 

Kindly note the covered period for 2022 is Jan – Apr.

Even though many provinces recorded a drop in the average salary in 2022, historically prosperous regions, such as Alberta, British Columbia, Yukon, etc., reported healthy salary growth. If the latest projections are any indication, there is enough reason to be cheerful. According to this government report, the national average salary is slated to jump up by 4.2% in 2024. This reiterates the fact that the Canadian economy is in robust shape, global headwinds notwithstanding. 

Fastest Growing Industries in Canada

Knowing which sectors recorded the highest growth in the last year can prove beneficial for people who are starting their careers or considering a career change. Having a job in an industry that is growing fast means more opportunities for higher salaries and promotions. 

The finance and insurance, arts and entertainment, and healthcare are some of the fastest growing industries in Canada. AFter the Covid-19 pandemic, the retail industry is seeing a spirited comeback. By understanding which sectors are fast-growing, prospective job seekers can start working toward their chosen field in a role that matches their expertise and interests. 

Industries with a Falling Average Yearly Income in Canada

The average yearly income in Canada has gone up since 2019, and the upward trend is likely to continue from 2024 onward, with most experts billing the drop in 2022 as a blip. 

All sectors but two recorded a salary growth in 2021. Only the management of companies and enterprises and forestry and timber harvesting sectors did not see an increase in the average pay in 2021. 

Management of Companies and Enterprises: +0.0%

Forestry and timber harvesting: -8.9%

Canada’s Lowest-Paying Job Sectors

Canada’s lowest-paying sectors include the arts, entertainment, and recreation and retail sectors.

Even though the average annual salary in the professional services , real estate, and finance and insurance services rose by a whopping 5.2% in 2023 — the highest salary growth across all industries. The average yearly income in this sector in 2021 was only $67,259 which comes to $5,604 a month. 

The retail sector, in comparison, recorded a salary growth of 3.8% in 2023, but the average annual income in this sector is a measly $36,970 or $3,080 a month. This barely keeps up with the reported inflation rate around 3% in the second quarter of 2024.

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Canada’s General Income Statistics

No numbers on their own can provide a comprehensive understanding of a country’s economy. Here are some more statistics to help you gain a better insight into Canada’s economy. 

Percentage of Canadians Having an Annual Salary of $100,000 or More

Research shows that 21.2% of Canadians had an annual income of $100,000 or more in 2021 (Statistica). As expected, the average pay varies greatly according to: 

• Industry
• Education
• Expertise

In 2021, roughly 19% of workers in Canada had an annual salary in the range of $60,000 - $79,000, while nearly 2% Canadians earned less than $5,000 a year. 

How is Income Distributed by Age in Canada?

In 2023, the average income of Canadian senior citizens aged 65 and over was $42,000. This is the overall earnings for seniors, including pensions and other retirement incomes. The median after-tax income for unattached seniors was notably lower, indicating significant income disparity. In 2023, reports also show that roughly 383,000 million seniors residents in Canada are living on an annual income that is less than $17,000.  

Canadians in the age bracket of 45 to 54 have a median income of $66,968 a year. Research shows that individuals generally earn the most when they are between the ages of 45 and 54. Canadian workers in their 40s and 50s age group now earn more money than the younger generation with less skills and experience. While their average yearly income is $66,968, those in the age bracket of 25 to 34 earn roughly $45,953 a year. 

Millennials, by contrast, have a yearly income of $44,093 on average. According to the latest income data, people aged between 25 and 35 are making more than Baby Boomers and Gen X made at the same age. 

Gender Income Gap

The gender pay gap, which refers to the difference in average earnings of workers based on gender, is wider than you may think in Canada. The gender income gap for full-time workers is 0.90, meaning women make 90 cents for every dollar men make. For part-time workers, the gap is marginally wider at 0.89. Part-time women workers make 89 cents for every dollar men make. 

Pay Gap between Indigenous and Non-Indigenous Workers

Canadian income data shows that there is a considerable wage gap between indigenous and non-indigenous workers. The income gap in rural areas, as expected, is much wider than in metropolitan cities. 

In metropolitan cities, indigenous workers make 34% less than their non-indigenous peers. In comparison, they earn up to 88% less than non-indigenous people in rural areas. 

On a positive note, university degrees are helping to narrow the gap. Across Canada, indigenous men and women who have a university degree make 15 and 19% less than their non-indigenous peers. 

The Top Earners

The average income of Canada’s richest people in the population has increased more sharply than others. For example, in 2018, the top 1% of Canada’s earners had an average annual income of $496,200. In 2021, this figure was $685,000. 

The richest 0.1% of earners recorded an even more impressive salary growth in this period. While in 2018 the average yearly income of this group of workers was $1,669,400, in 2021 they were making $2.6 million a year on average. 

How Much  Does the Average Canadian Family Spend on Tax?

Guess what is the average Canadian household’s biggest expense? 

If you said housing, food, or clothing, you are wrong. It is taxes!

In 2023, the average Canadian household spent $64,610 on taxes, both visible (like income tax) and hidden (like taxes on alcohol, cigarettes, hotel rooms, gambling, and gasoline). To put this into perspective, the average Canadian family spent $17,856 on housing in 2023— that is half the amount they spent on taxes. In fact, the average Canadian family’s spending on taxes is more than the combined cost of housing, food, and clothing, limiting their disposable income.

What is the Minimum Hourly Wage in Canada?

The minimum hourly wage in Canada varies by province, with Nunavut paying the highest minimum wage and Saskatchewan the lowest. 

Note: Several provinces, including Ontario, are set to raise their minimum wage on October 1, 2024.

Conclusion

Canada is undoubtedly one of the top countries for salaries, employees compensation, and job opportunities. In 2023, the average annual salary in Canada was $64,850. But keep in mind that salaries vary greatly from one industry to another and one region to another. If you are planning to move to Canada, do consider industry-specific and region-specific stats. 

Looking to protect your income from the unexpected? Speak with a Dundas Life licensed insurance advisor today. We can help you protect your family with Canada's top life insurance companies today.

Frequently Asked Questions

Which are the highest paying sectors in Canada?

Mining, quarrying, and oil and gas extraction is the sector that pays the best. The average weekly pay in this sector is $2,242, which comes to more than $116,584 a year.

Some of the other high paying jobs in Canada include: 

• Specialist physician
• Software architect
• Surgeon
• Lawyer
• Judge
• Engineering manager
• Actuary
• Engineering Pilot

Which are the lowest paying jobs in Canada?

Lowest paying jobs in Canada include:

• Service station attendant ($14 per hour)
• Cashier ($14 per hour)
• Fast food preparer ($14 per hour)
• Food preparation worker ($14 per hour)
• Dishwasher ($14 per hour)
• Food and beverage server ($14 per hour)
• Cook ($15.50 per hour)
• Maid ($16.61 per hour)
• Hotel clerk ($16 per hour)
• Bartender ($17 per hour)

What is regarded as high income in Canada?

In 2021, the average monthly salary in Canada was $5,481. So, an annual pay of $70,000 or more will be above average.

Keep in mind that living costs can vary greatly from one city to another and from one province to another. What is considered a good pay in one city or province may not be enough for living in comfort in another city or province.

Is cost of living cheaper in Canada than the US?

Yes, it is. The average cost of living in Canada is $1,832, ( a week?/month?) which is 13% cheaper than in the US ($2,112). However, the average salary in the US is higher than in Canada.

Which city in Canada has the highest average income?

With an average annual salary of $104,410, Calgary is presently the highest-paying city in Canada. Other notable mentions include Regina ($97,940 a year), Oshawa ($92,080 a year), and Victoria ($89,640 a year).