If you’re planning to move to Canada, one of the major things you’ll be considering is getting a job that pays enough to cater to your needs. In that case, you’ll need to know what exactly qualifies as a good salary in Canada. So, is 200K a good salary in Canada?
$200,000 is a great salary no matter which part of Canada you choose to stay. However, what amounts to a good salary varies across provinces due to various factors. Reasons for the difference include location, experience, education, and industry and company. Regardless, 200k is good everywhere.
Even though 200k is a good salary, the chances of earning it in Canada are very slim. It’ll require years of experience to earn that amount in most jobs. Here, we examine whether 200k is a good salary in Canada.
What is a Good Salary?
To determine whether 200K is a good salary in Canada, it’s important to first know what a good salary is. This varies based on certain criteria, but it’s important to know when you’re earning well as this helps you professionally and personally. A good salary is sufficient for your basic needs while still leaving extra for leisure activities, savings, investments, and other miscellaneous expenses. On a professional level, a good salary also boosts your confidence and motivates you to work. Knowing what qualifies as a good salary will also help you seek a new job and influence salary negotiations.
Criteria for Determining a Good Salary
There are variations as to what is a good salary. Here are the factors responsible for the variations:
The geographical location plays a significant role in determining the salary in Canada. Salaries vary across cities even when other factors such as experience, industry, and job title are the same. This disparity is because of other differences such as job scarcity, cost of living, taxes, local job demand, etc. For example, the average salary for a software developer in New Brunswick is $65,890, while Ontario’s role has an average salary of $98,840.
Even where the salary is the same, that doesn’t necessarily mean it’s good in both places. For example, while $60,000 might be a good salary in Halifax, Nova Scotia, it’s not good enough in Vancouver, Ontario. This is due to the higher cost of living in Vancouver. So, while some provinces like Ontario might have higher wages on the face value, with the adjusted cost of living, someone earning less in New Brunswick might have a higher salary.
Your level of experience will also affect the pay, but this differs based on the profession. Earnings data show that employees between 2 – 5 years of experience can earn 32% above the average entry-level salary. Those with above 5 years of experience earn about 36% higher than those with below five years of experience.
However, the gains based on experience aren’t always that high. For example, certain legacy jobs such as lawyers and doctors usually have higher gains than other professions.
Your level of education also influences how much you’ll earn and whether the salary qualifies as a good one. Generally, the higher your education level, the more the salary earned. While the significance of the gains might be different across professions, Ph.D. holders usually earn the highest. However, one also needs to consider the cost of education and the duration of the post-graduate programs.
4. Industry and Company
The industry you’re working in and the company you’re working for also significantly influence the pay. Non-profit organizations and small businesses generally pay less than top corporations. For example, a software engineer at Facebook earns more than one working with a startup even if they both have the same skillset and experience.
The difference in wages across the industry is due to factors such as years of training required to be qualified, demand and supply of labour, on-the-job responsibility, and how tasking the job is. This is why professions such as medical, legal, engineering, etc., usually have higher wages on average.
What is a Good Salary in Canada?
What qualifies as a good salary in Canada differs from one province to another. Here is the minimum post-tax salary that a family of 4 can live comfortably on in Canadian provinces.
Ontario is generally the most expensive of all the provinces in Canada due to hyper-expensive cities such as Toronto. The average rent of a 3-bedroom apartment is $2,625, and every other thing is equally expensive. This means that the average cost of living for a family is very high, with Toronto having the highest at $4,421.64 excluding rent. Therefore, for a family of 4 to live comfortably in this province, the salary should be around $100,000.
Homes are quite affordable in Quebec, and so are other expenses. Its biggest and most expensive city, Montreal, is also one of Canada’s cheapest major places to live. The estimated monthly living costs in the city are $4,838 for a family of 4. With Montreal this cheap, the average cost of living for the province is even lower. A salary of around $70,000 will qualify as a good salary in Montreal itself, but it can be much lower for the whole province.
3. British Columbia
The cost of living here is similar to that of Ontario. This is partly because Vancouver is one of the most expensive Canadian cities. The cost of living in the province for a family of 4 was $4,274 as of 2019, which means it’s higher now. An average salary of around $70,000 is sufficient as a household income in this province. However, that doesn’t apply to those living in Vancouver or other major cities in the province. The cost of living alone in Vancouver is $4,301.51, and the median rent for a 3 bedroom apartment here is $3,650. So, a good salary here is around $100,000
The cost of living in Alberta is quite low, with estimated monthly expenses of $2,190 for a family of four, excluding rent. When rent is included, the overall living expenses are still less than $4,000, which is quite cheap. Despite the low cost of living, Alberta has one of the highest household incomes in the country. A good salary is around $50,000.
There’s no doubt that a $200K salary in Canada is a good salary. Regardless of whether you’re living in an expensive city or a cheap suburb, this salary is great for a family of 4. However, only a small percentage of the population earns this much annually as the average salary is around $60,000.