Setting salary budgets for 2005? Think 3.3%

Surveys forecast overall average increases between 3.1 and 3.4 per cent
By David Brown
|Canadian HR Reporter|Last Updated: 11/01/2004

Low inflation, an uncertain, though brightening, economic outlook and a still growing interest in pay for performance, are among the major factors why Canadian salary budgets will increase by 3.3 per cent in 2005.

Several salary surveys were released this month, all of which forecast overall average increases between 3.1 and 3.4 per cent with variation by region, sector and job level.

Interpretations of the forecast increases vary. Some said increases are proof employers are fairly optimistic and see a brighter economic horizon. They point out expected increases appear to be at least as good as last year’s. What’s more, almost no employers are expecting salary freezes.