Montréal, Tuesday, October 7, 2014 – The average wage increases of 2.8% that Québec employers expect to award next year will, in general, be similar to what they were in 2014. Salary structure increases remain stable with an average increase of 2.0%.
Meanwhile, for Québec employers the projected wage increases for 2015 will represent an average additional yearly payroll cost of $172 per employee, on an average salary of $40,000, considering the various contribution rates announced for next year (contributions to the Occupational Health and Safety Fund, the Québec Parental Insurance Plan, Québec Health Fund, etc.).
“It should be noted that Québec employers annually pay about 30% more in payroll taxes than their counterparts in Ontario, and 45% more than the Canadian average,” stated Quebec Employers Council president and CEO, Yves-Thomas Dorval. “This gap with our neighbours should put into perspective the challenge that awaits the commission examining taxation in Québec, and it should make us realize the importance of reducing costs in order to maintain the competitiveness of Québec businesses.”
This observation was the subject of the third preliminary document by the commission examining taxation in Québec, entitled La fiscalité des sociétés du Québec, which was released last September 26.
Quebec Employers Council 2015 salary forecasts
The Special Report on Salary Forecasts is a Quebec Employers Council publication prepared by some of Québec’s leading human resources consulting firms. This year’s report was produced with Mercer, Morneau Shepell, Normandin Beaudry and Towers Watson, and it contains a brand new section which presents an analysis of salary trends in the associative activity sector, as noted by the Centre québécois de service aux associations since 2009.
The 2015 edition of the salary forecast was released in Montréal today at a breakfast-meeting with more than 100 human resources managers and professionals in attendance.
From a regional and sectoral standpoint, the expected wage increases in Alberta and Saskatchewan, and the anticipated salary hikes in the energy sector, remain the highest, although the comparative gap is not overly significant. There is also not expected to be major discrepancies in wage increases awarded in the various employment categories (technical and administrative staff, operational and production personnel, professionals, managers, senior executives, etc.)
“In a competitive global market context, where access to an available, quality labour force at a competitive cost is a priority, employers have to be able to benefit from the best possible conditions (particularly in terms of payroll taxes) to create wealth and provide competitive wages to their employees,” stated Quebec Employers Council president and CEO Yves-Thomas Dorval.
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The Quebec Employers Council brings together many of Québec’s largest companies and the vast majority of sector-based employers’ groups, making it Québec’s sole employers’ confederation. Directly and indirectly it represents more than 75,000 employers of all sizes, in both the private and public sectors, which have operations in the province of Québec.
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