PCI projects average salary increase of 4.2% in Quebec in 2023

PCI Compensation Consulting is projecting an average salary increase of 4.2% for Quebec organizations in 2023 – up 1.3 points from 2023’s 2.9% – as labour scarcity and inflation continue to drive salary growth.

The consultancy’s 9th annual salary report surveyed more than 350 organizations across industries to assess their budgets for salary increases and initiatives to address workforce issues.

"Despite an uncertain economic environment, record high inflation has resulted in salary forecasts that are significantly higher for 2023 than they have been since we launched our salary increase survey 9 years ago," said Evelyne Gaudreau, consultant and head of surveys at PCI Compensation Consulting. “These new forecasts clearly reflect the harsh reality facing organizations: a competitive labour market, driven in part by an aging population, and inflationary pressures that are just beginning to subside."

The average projected salary budget increase is between 3.2% and 4.5% depending on industry, with energy and natural resources being the most generous. Despite well-publicized issues with labor shortages and turnover, accommodation and food services was at the lower bound, at 3.2%.

In terms of organization size, larger organizations tended to have a lower rate of wage increase, according to the PCI survey.

Over half of organizations reported an additional budget of 2.5% on average to recognize special cases such as employees in jobs with shortages and high-potential employees.

Salary structure budgets are pegged to increase 3.3%, up from 2.3% in 2022.

PCI is a Montreal-based boutique compensation consultancy, with expertise across boards of directors, executives, and employees. The firm was earlier this year acquired by Gallagher, a global insurance broking and HR consulting firm.