What Is the Average Canadian Salary by Age Group?

by admin on November 4, 2021

Do you know that every working-age group in Canada differs from the national average?

If not, then you must be thinking that:

Why is there a difference in the average salary by age in Canada?

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 that of $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 are:

  • Education
  • Experience
  • Cost of living in your area
  • Skills
  • Type of work
  • External forces on the job market

There’s a direct correlation between age and salary. The average salary generally increases as people become older. This is mainly because of the fact that higher aged people possess more experience, business contacts, and negotiation skills.

Factors that make the data misleading

The fact that average Canadian income increases with the increasing age are only true until the age of retirement. The average income decreases as you get closer to age 65, but this may not mean that you earn less money.

The average reflects the total number of Canadians working and accounts for salary earnings of that number. You can use this statistical data as a starting point to help you learn about your industry, but be cautious as it can be misleading.

What Are The Factors That Can Help Increase Your Salary?

Following are the factors that can increase your salary:

Education

Your education, certifications, and accreditations can have a significant impact on the salary you earn. For example, if you have a master’s or professional degree, you will likely make a higher salary than someone in the same position who has an undergraduate degree.

Level of experience

Typically, more experience results in higher pay – up to a point. The level of your experience reflects your industry insight, career progression, and 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.

Cost of living

Companies located in large cities or urban areas with high costs of living usually have to pay higher salaries than businesses located in more affordable areas.

For example, larger cities like Calgary, Edmonton, Toronto, Vancouver, and Montreal are more expensive 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.

Skill set

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.

Work structure

Your salary can also depend on how you structure your income. Working part-time, full-time, hourly, salary, or on contract could be included in that. Usually, working longer hours or working on more specialized contracts earns a higher income.

Depending on your job requirements, there may be ways to increase your hours or work on more specialized contracts to increase your income.

Industry and specialization

The determination of the field you work on incomes from your education, 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.

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.

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 average salary for ages 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:

  • Average weekly salary: $350
  • Average monthly salary: $1,400
  • Average annual salary: $16,800

The average salary for ages 25-34

Adults who have completed their high school and post-secondary education fall under this category. They often have a few years of work experience and potentially begin to receive raises and promotions.

So, on average, there is a significant increase in pay for this group than the previous one:

  • Average weekly salary: $979
  • Average monthly salary: $3,917
  • Average annual salary: $47,000

The average salary for ages 35-44

This segment includes adults who are more established in their careers 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:

  • Average weekly salary: $1,269
  • Average monthly salary: $5,075
  • Average annual salary: $60,900

The average salary for ages 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 top-level positions.

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

  • Average weekly salary: $1,425
  • Average monthly salary: $5,700
  • Average annual salary: $68,400

The average salary for ages 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:

  • Average weekly salary: $1,152
  • Average monthly salary: $4,608
  • Average annual salary: $55,300

The average salary for ages 65+

This segment includes adults who are in the final years of their working career, 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:

  • Average weekly salary: $865
  • Average monthly salary: $3,458
  • Average annual salary: $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
  • 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
  • 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

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

The sector with the highest average annual salary in Canada by a considerable margin is mining and oil/gas extraction, followed by work in the utilities: water, electricity, and telecommunications.

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 Arts, Entertainment, and Recreation sector had the highest pay rise of 26.3 percent, it only brought the average annual salary up to $40,241.76. The accommodation and food services sector followed by the retail trade sector provide their employees with the lowest average annual salaries.

FAQs:

Which age group makes the most money in Canada?

The 45-54 years old age group has the highest average Canadian income. The average salary in Canada per month for this age group is $5,700. Similarly, their average weekly salary is $1,425 and their average annual salary is $68,400.

How much does the average 25-year-old in Canada make?

The average 25-year-old in Canada make the following amount of money on a weekly, monthly and annual basis:

  • Average weekly salary: $979
  • Average monthly salary: $3,917
  • Average annual salary: $47,000

What is a good salary for a 35-year-old?

For a 35-year-old, an average of $1,269 per week, or $5,075 per month, or $60,900 per year is considered to be a good salary.

What percentage of Canada makes over 100k?

On average, approximately 10% of Canadians make over 100K. In 2019, 15.7 percent of the Canadian population had an annual income of 100,000 Canadian dollars or more.

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