Alberta may lead the provinces with the highest median household income, but Nunavut grabs the national spotlight. The three territories dominate with the highest average salaries. However, in 2022, Nunavut saw a slight decrease in overall average yearly salaries, dropping from $87,355 to $82,875—a 5.13% decline.
On the flip side, poverty is hitting 15% of elderly Canadians hard, and women are still grappling with an 11% pay gap compared to men. Indigenous workers are facing a substantial income disparity compared to their non-Indigenous counterparts. But it’s not all doom and gloom—British Columbia boasts the highest minimum wage in the country at a solid $17.40 per hour.
The income game has been wild for Canada’s richest. Back in 2018, the top 1% of earners were bringing in an average of $496,200 annually. Fast forward to 2021, and that figure had jumped to a jaw-dropping $685,000. The richest 0.1% saw even crazier gains, with their average yearly income soaring from $1,669,400 in 2018 to a staggering $2.6 million in 2021.
Ontario’s hourly wages have been on a slow and steady climb. From a modest $8.75 in 2008, wages ticked up to $10.25 by 2010 and held steady until 2013. After a series of gradual increases, they hit $14.00 in 2018. There was a two-year pause, but they’re back on the rise, reaching $15.50 in October 2022, $16.55 in October 2023, and are set to hit $17.20 by October 1, 2024.
Between 2016 and 2020, Canada’s median after-tax income saw a boost from $60,400 to $66,800, with Alberta leading the charge and Newfoundland and Labrador trailing behind. By 2023, individual median incomes show a wide range, with the Northwest Territories at $77,900 and Prince Edward Island at $46,160. Regional income disparities are stark, as evidenced by Yellowknife’s impressive $141,700 versus Dehcho’s $75,584.
- Income by Age
Income typically increases with age, peaking in the 45-54 age group at $66,700 annually. Salaries then decrease as individuals approach retirement, averaging $54,600 annually for those 55 and older.
- Elderly Income
Canadians over 65 average $22,600 annually, partly due to reliance on the Guaranteed Income Supplement. Approximately 15% of seniors live in poverty.
- Minimum Hourly Wages
British Columbia leads with the highest minimum wage at $17.40, followed by Ontario at $17.20. Yukon stands at $16.77, while Alberta, Nova Scotia, Newfoundland and Labrador, and Saskatchewan have the lowest minimum wage, set at $15.00 per hour.
- Wage Gaps
Women earn 11% less than men, and Indigenous workers make 34% less than non-Indigenous counterparts in urban areas.
- Taxes
Canadians pay federal taxes from 15% to 33% and varying provincial taxes, averaging 42.6% of their income.
Originally published on Reveal Niagara Business Magazine – August Edition
Source: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110023901
