Average Canadian Salary by Age Group

Do you know that in Canada, every working-age group has different national average salaries?

If not, then you must be thinking:

Why is there a wage disparity in Canada based on age?

It’s because:

Each age group has different levels of experience.

For example:

People in the age group 45-54 have more experience and earn $52,308 per year on average, compared to $41,236 in the less experienced 25-34 age group.

Why Does Average Canadian Salary by Age Differ?

Here are a few factors due to which the average Canadian income varies for each age group:

Factors about your attributes

The combination of the following factors determines why your salary may be above or below the average. They include:

• Education
• Experience
• Cost of living in your area
• Skills
• Type of work
• External factors influencing the labor market

There’s a direct correlation between age and salary. People’s average salaries tend to rise as they get older. This is primarily due to the fact that older people have more experience, better business relations, and negotiation skills.

Factors that cause the data to be misleading

The fact that average Canadian income increases with the increasing age of a person only until they retire. The average income declines as you approach 65, but this does not necessarily imply that you earn less money.

The average reflects the total number of Canadians who work and accounts for their salary earnings. You can use this statistical data to learn more about your particular industry, however, be cautious because it can be sometimes misleading.

What Factors Can Help You Increase Your Salary?

Following are the eight factors that can help you increase your salary:

1. Education
2. Level of experience
3. Living expenses
4. Skillset
5. Type of work
6. Industry and specialization
7. Adaptability
8. Networking abilities

1. Education

Your educational background, certifications you’ve earned, and accreditations that you’ve garnered can greatly influence the amount of money you make. For instance, if you possess a master’s or professional degree, you will probably get paid more than a person with only an undergraduate degree in the same role.

2. Level of experience

Typically, more experience results in higher pay – up to a point. Your level of experience reflects your industry knowledge, the progression of your career, and your achievements. The longer you’ve worked in an industry or job role, the more knowledge and experience you develop and the higher you’re earning potential.

3. Living expenses

Companies in large cities or urban areas with high living costs must typically pay higher wages than businesses in more affordable areas.

For example, larger cities like Edmonton, Calgary, Vancouver, Toronto, and Montreal are more costly to live in than others, so the salaries in these areas are usually higher than average to help employees cover costs for things like rent, real estate, and other basic living necessities.

4. Skillset

If you have a skill set that’s in high demand, or you’ve acquired new skills through experience, education, or a certification program, this may give you a higher salary than the average salary for your age group.

5. Type of work

Your salary may also be affected by how you structure your earnings. Working on a part-time basis, full-time basis, hourly, salary, or on contract could all be considered. Working longer hours or on more specialized contracts usually earns a higher salary.

Depending on the nature of your job, there may be opportunities to work more hours or on more specialized contracts to supplement your income.

6. Industry and specialization

The determination of the field you work in comes from your passion, educational background, work experience, skills, life circumstances, and choice of specialization.

Industries that require specialized and extensive education pay higher salaries since fewer workers meet the requirements of the role.

7. Adaptability

There are certain circumstances that are beyond your control. They may include government policy, performance in the stock market, new supply chains, or a global pandemic.

The type of work you do may change in the next few years, and being adaptable to those circumstances may affect your salary.

8. Networking abilities

You will likely meet more professionals in your industry when you gain more experience in your role. Developing contacts and building your reputation within your industry helps present opportunities to increase your earning potential.

What is the Average Canadian Salary By Age?

The following information shows the average salary by age in Canada, as per the report of Statistics Canada.

The median pay for persons aged between 16-24

This age group includes young adults who are entering the labor force. People in this category may work part-time or full-time. It also includes those who work while studying in school:

• Median weekly income: $350
• Median monthly income: $1,400
• Median annual income: $16,800

The median pay for persons aged between 25-34

Adults who have completed their high school and post-secondary education fall under this category. They often possess a few years of job experience and obtain increments and advancements.

Thus, the median compensation for this group is substantially higher than it was for the previous one:

• Median weekly income: $979
• Median monthly income: $3,917
• Median annual income: $47,000

The median pay for persons aged between 35-44

This segment includes adults who are more established in their professions and are moving into senior and specialized roles. While the increase in earnings is less substantial than that for the previous group, the earnings increases are still measurable:

• Median weekly income: $1,269
• Median monthly income: $5,075
• Median monthly income: $60,900

The median pay for persons aged between 45-54

When we examine the average salary by age in Canada, we find that individuals reach their peak earnings between the ages of 45 and 54. This segment includes adults who have decades of experience in their roles and are advancing into high-level roles.

The growth in salary for this group is smaller, suggesting that skill development is more relevant earlier in your career:

• Median weekly income: $1,425
• Median monthly income: $5,700
• Median monthly income: $68,400

The median pay for persons aged between 55-64

This group includes adults who are entering their last decade of work and retirees. The decrease in salary suggests that those closer to retirement may decrease their work hours and type of work, or opt for early retirement:

• Median weekly income: $1,152
• Median monthly income: $4,608
• Median monthly income: $55,300

The median pay for persons aged between 65+

This segment includes adults who are in the final years of their working careers, with many transitioning into retirement. This decrease in salary is because of the fact that many are exiting the workforce or working in a more limited capacity:

• Median weekly income: $865
• Median monthly income: $3,458
• Median monthly income: $41,500

Average Canadian Annual Salary By Job Sector

• Accommodation and Food Services – $22,877.92
• Administrative and Support – $47,369.92
• Arts, Entertainment and Recreation – $40,241.76
• Construction – $68,374.28
• Education – $58,343.48
• Mining, Oil and Gas Extraction – $113,506.12
• Professional, Scientific, and Technical Services – $76,077.56
• Public Administration – $75,799.88
• Real Estate (Rental/Leasing) – $58,623.76
• Retail – $34,503.04
• Transportation and Warehousing – $61,011.08
• Utilities – $101,531.04
• Wholesale Trade – $67,456.48
• Finance and Insurance – $76.843
• Forestry and Logging – $58,739.20
• Health Care and Social Assistance – $52,888.68
• Information and Culture Industries – $71,634
• Management of Companies and Enterprises – $74,560.72
• Manufacturing – $59,250,36

Canadian Job Sectors with the Highest Average Annual Salary

The highest paying jobs in Canada are related to the following sectors:

• Mining, Oil and Gas Extraction – $113,506.12
• Utilities – $101,531.04
• Finance and Insurance – $76.843
• Professional, Scientific, and Technical Services – $76,077.56
• Public Administration – $75,799.88

Mining and oil and gas extraction have by far the highest median yearly income in Canada, trailed by jobs in the utility industry.

The Canadian Job Sectors With The Lowest Average Annual Salary

• Arts, Entertainment, and Recreation – $40,241.76 (+26.3)
• Retail – $34,503.04 (+8.0)
• Accommodation and Food Services – $22,877.92 (+6.4)

While the Entertainment, Arts, and Recreation sector saw the highest pay increase of 26.3 percent, the average annual salary remained at $40,241.76. The industry that pays its workers the least median yearly income is accommodation and food services, succeeded by retail trade.

What’s The Average Income By Province?

Here’s a table highlighting the average salary in each province of Canada:

Conclusion

It’s crucial to keep a close eye on the facts and figures related to the average salary by age in Canada, regardless of whether your salary is above or below the national average. Being familiar with the latest trends can help us better understand the wage and compensation growth of multiple demographic groups across the country. In addition, the Canadian salary details may enable us to find answers to some of the most critical concerns of the Canadian economy.

The Primus Workforce team is proudly built on hands-on industry knowledge and experience.