Benefits August 27, 2003

Mercer: Canadian Pay Hikes at 3.25% in 2004

August 27, 2003 (PLANSPONSOR.com) - Keeping in line with projections in the United States, Canadian companies are projecting salary increases of 3.25% in 2004.
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The latest numbers come after increases in 2003 (3.5%) fell short of the projected 3.6%. However, encouraging news could be found in only 3.5% of employers anticipating a salary freeze in 2004 and indication that the same number of Canadians (84.3%) may receive pay raises as in the previous year, according to Mercer Human Resource Consulting’s 2004 compensation planning survey.

Leading the charge were companies in natural resources, particularly oil companies, which foresee increases of 3.6%, followed by professional services at 3.3%. Early indications are that no sectors are looking much below a 3% increase in their 2004 planning.

In an inverse of Mercer’s US survey – which predicts a 3.5% increase in 2004 (See Pay Increases at 3.3% in 2003, 3.5% in 2004 ) – at 3.3% the highest pay hikes are expected to be awarded to executives. The weakest increases are expected for clerical and hourly staff at 3%.

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