Quebec Could See 'Historic' Salary Increases Next Year

Cha-ching! Some Quebecers could see significant salary bumps next year, according to projections from the Conseil du patronat du Québec (CPQ), an organization that represents more than 70,000 employers in the province.

The CPQ says businesses are anticipating an average salary budget increase of 4.16% (that average excludes companies planning salary freezes) for non-unionized employees. Even greater increases, between 4.4% and 4.7%, could be coming to companies in the IT, real estate, "professional services" and manufacturing sectors.

Salary bumps in Quebec could be the greatest of any Canadian province in 2023. On average across Canada, the CPQ forecasts a 3.8% increase in salary budgets (excluding freezes) for non-unionized employees. In Ontario, British Columbia and Alberta, where salaries are already higher on average, the projected average increases are 3.9%, 3.7% and 3.6%, respectively.

According to CPQ Vice President of Research and Chief Economist Norma Kozhaya, the hikes in Quebec have the potential to be historic. "Employers need to be attractive in their compensation packages," she said in a press release, pointing to the province's labour shortage and high number of job vacancies. "This situation is intensifying year after year."

Inflation is also driving wage hikes. The CPQ says a third of businesses in one of its surveys are "considering" increases outside of their usual compensation review schedule.

"The data shows that employers are sensitive to the reality of inflation and the impact on employees," CPQ CEO Karl Blackburn asserts in a press release. "They have no choice but to be proactive because the labour market is changing extremely quickly. We are moving away from the days of once-a-year performance reviews."

This article's cover image was used for illustrative purposes only.