Canadian employers are projecting the highest salary increase in two decades
Keeping salary info up-to-date is vitally important
According to a recent study from consulting house, Eckler, the national average base salary increase for next year is projected at 4.2 per cent, excluding planned salary freezes1. This parallels 2022 actual base salary increases—projected salary increases for 2022 was lower than the actual figures. British Columbia, Ontario and Quebec are projecting the highest average salary increases, with the Yukon, Nunavut and Prince Edward Island projecting the lowest.
Out-of-date salary data can have a serious impact on the financial wellbeing of employees and their families
Since most benefit plans base life and disability insurance benefits on employees’ earnings, it is vitally important to keep this information up-to-date in Empire Life records, for all insured employees. “Out-of-date salary data can have a serious impact on the financial wellbeing of employees and their families, should they need to take time off work due to an injury or illness, or if a life insurance claim is made,” says Christi Cowell, Vice president of Group Operations at Empire Life.
If a plan administrator sends in a notice of a change in earnings when they file a claim, this change will only be processed when the employee is actively at work again. Keeping salary data up to date is one of the best ways to ensure employees receive the right benefit amount if they make a life insurance or disability claim.
The Group Administrator Portal makes it fast and easy to administer updates
Important things to remember when communicating changes in employee salary/earnings:
- For changes to an hourly wage, indicate the number of hours the employee works per week
- For changes to salary amount, indicate salary frequency: weekly, monthly or annual.
- If a plan insures commission earnings, please communicate the commission earnings annually, at the time T4 calculations are prepared for the previous year. Remember to update commissions as a separate amount, independent from base salary.
The Group Administrator Portal makes it fast and easy to administer these updates.
1Eckler. Compensation Planning Survey. 2022