Income varies greatly from person to person in Canada. According to a 2020 study by Statista, the median household income in Canada was $96,220. However, this number can be deceiving as it does not account for the vast wealth and poverty that exists across the country. Some earn well below this amount while others earn well above it which can skew the data. So what is the average annual income in Canada?
Table of contents
- What is the average annual income in Canada?
- Average annual income in Canada by province and territory
- What are the highest paying industries in Canada?
- What are the lowest paying industries in Canada?
- What percentage of Canadians make over $100,000?
- Is $50,000 a good salary in Canada?
- How do you rank?
In order to get a better understanding of how average Canadians fare financially, we need to take a closer look at the data. Read on to learn the ins and outs of average annual incomes in Canada!
The average hourly wage for a Canadian household was $36.28 in 2020 for a full-time employee. When you multiply that by 8 hours, the average daily wage comes to $290.20, or weekly it’s around $1,451. Therefore, the average bi-weekly salary is about $2,902 and monthly would be approximately $6,287.67 per month. Here are some more interesting stats:
On average, Canadian households bring in about $75,452 each year. Of course, somebody who works longer hours will earn more than someone who doesn’t work as many hours, unless you’re salaried. In addition, if you have a dual income household, you can double these figures. Also, salary growth is expected to rise in the next year or so for most middle-class workers.
What is the average annual income in Canada for singles?
When looking at data from Statistics Canada, the average annual income for singles aged 25 to 54 is $60,900. The average annual income for single seniors in Canada is $43,200. However, this does not take into account the cost of living or other financial factors such as debt.
The average household income in Canada is difficult to define because there is a great deal of variation from one province to the next. In addition, some households have one income, whereas others may have two incomes or more. In general, the average household income is between $60,000 and $120,000 per year. This figure includes both pre-tax and post-tax income, and it reflects the fact that many households have two or more earners. The exact amount of income taxes paid also varies from one province to the next.
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Average annual income in Canada by province and territory
|Province & Territory||Average Annual Income|
|Newfoundland and Labrador||$109,294|
|Prince Edward Island||$64,030|
If you’re looking into changing careers or just beginning your job hunt, it might be helpful to research which industries have been growing the most over the past year. Although average Canadian incomes decreased by 3% from 2019 to 2021, this growth rate is not the same in all industries and economic sectors.
The following sectors have experienced average pay increases of over 8%, which exceeds the national average by more than two times:
- Arts, Entertainment, and Recreation +26.3%
- Real Estate Rental/Leasing +14.6%
- Administrative and Support +9.4%
- Public Administration +9.3%
- Finance and Insurance +9.3%
- Health Care and Social Assistance +9.1%
- Retail +8.4%
Although the Finance and Insurance industry remains robust, the Arts, Entertainment, and Recreation sector saw phenomenal pay growth of 26.3 percent. Despite all the buzz around the Canadian housing market, the real estate industry has made a remarkable comeback since early 2019. In fact, it’s currently one of the highest-paying industries out there; in 2021, the average pay increased by 14.6%.
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According to the latest data from Statistics Canada, the Arts, Entertainment, and Recreation sector was the lowest-paying job sector in 2021, with an average annual salary of just $40,241. Despite this low absolute figure, the sector saw the highest pay growth of any sector in the country, with wages increasing by 26.3% over the course of the year. This is why it’s important to pay attention to both growth rates and dollars!
While retail was also among the lowest-paid sectors in 2021, it actually saw a smaller increase in wages than many other sectors, with wages rising by just 8.0%. Nonetheless, retail remains a significant employer in Canada, and continues to provide excellent opportunities for job seekers and new hires.
A person’s earnings in Canada depend largely on their educational level, industry and talents. In 2019, 15.7% of Canadians earned $100,000 or more per year. The average salary varies significantly according to these three factors. Around 17.6% of Canadians earn between $60,000 and $79,000 each year.
Approximately 2.1% of the population earns less than $5,000 per year. A person’s ability to earn a high salary is greatest when they possess all three of the aforementioned factors. However, even without one or two of these advantages, it is still possible to attain a high income in Canada through hard work, strategy and dedication.
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Whether or not $50,000 is a good salary in Canada depends on a number of factors, including the individual’s location, experience, and skill set. In addition, it depends on your budget and standard of living. For example, someone who lives in a rural area with low cost of living may be able to live quite comfortably on $50,000 per year. However, someone who lives in a major city with a high cost of living, like Toronto or Vancouver, may find it difficult to make ends meet on $50,000 per year.
Additionally, someone with many years of experience and/or advanced skills may be able to command a higher salary than someone who is just starting out. As a result, it is hard to say whether or not $50,000 is a good salary without knowing more about the individual’s circumstances.
In order to understand how you rank in terms of income in Canada, it is important to understand the averages. The average annual income in Canada varies by province and territory, with some provinces such as Alberta and Northwest Territories having significantly higher incomes than others. The average household income in Canada is just over $75,452 per year, and approximately 15.7% of Canadians make more than $100,000 annually. So, if you’re making $50,000 a year, you’re right around the average – which means that you’re doing just fine.
Read More: How many millionaires are there in Canada?