Is Your Salary Keeping Up With Canada’s Inflation?
In the good old days before Canada’s surge of inflation, most Canadians could typically expect a salary increase of 2-3%, providing enough of an increase to (usually) surpass inflation and possibly have a little extra spending power every year. But times have changed. A 6.8% rise in inflation in 2022 has many Canadians wondering how their salary is holding up against the pricing pressure of inflation.
Our Canadian Inflation calculator measures the value of money over time against inflation. The wage inflation calculator below helps Canadians measure their salary growth over a number of years, compared against actual CPI values for Canadian inflation. To use it, pick a starting point – say five years ago. Enter your salary from that time period, select the years, and add in the average amount of salary increase you received over those years. The LARi Insight wage inflation calculator will do the rest, showing you how Canadian inflation has impacted your spending power.
Note: Using an average % for salary increases means that your final salary calculation may not match your actual salary due to year-to-year fluctuations. The calculator is intended for providing a rough estimate to compare against inflation.
This calculator is for illustrative purposes only. We recommend that you seek your own financial, investment, tax, legal, or accounting advice.
Explore the Impact of Canadian Wage Inflation
The LARi Insight 2024 inflation survey collected feedback from over 1,200 Canadians on wage growth and Canadian inflation. We found that 94.5% of Canadians have some level of concern about their salary keeping pace with inflation. Our survey asked, “Do you feel your current income is keeping pace with the rate of inflation?” Just 5.2% of over 1,200 respondents chose “My income is completely sufficient”. To put that in perspective, the other 94.8% have some level of concern over their ability to meet their financial needs. Among all responses, 33.8% indicated their income is “somewhat sufficient”; 24.1% said “barely sufficient”; 19.5% said “mostly sufficient”; and 17.3% said “not sufficient at all.”
Read our full analysis of Canadian wage inflation concerns, or explore other aspects of inflation we have analyzed using original market research, such as food price inflation, Canadians’ growing focus on debt reduction, inflation’s impact on Canadian retirement goals, investment strategies, and the impacts of Canadian housing inflation.
The Financial Impacts of Canadian Inflation
Explore our complete coverage, with original market research and analysis from LARi Insight.