Compensation Increases in 2024

Shawnee Love   •   February 29, 2024

If your RRSP contribution and T4 deadlines have been met, you may now be turning your mind to compensation increases for 2024. Certainly, money is crossing your employees’ minds with every purchase of staples and necessities given how high interest and inflation rates in Canada have become.

The compensation oracles in Canada (by that I mean the folks who poll organizations for their budgets and then share the aggregated average) are predicting lower increases in 2024 compared to the last few years.

For 2024, the average increase predicted in Canada is 3.6%.

That doesn’t mean everyone will get 3.6%. It just means that’s the predicted budget for increases.

Last year, the oracles predicted an increase of 4.2% and in actual fact, increases were closer to 4.8% overall, so they do their best but it is just a prediction.

Further, even if it does prove true, some may get more or less depending on their organization’s compensation philosophy and practices as well as context. Still, 3.6% is a good place to start from if you are doing compensation planning.

Our next blog will cover some of the other considerations of compensation planning in 2024.