19% are planning to increase staff base salaries compared to 29% in 2020 To make the biggest impact with the limited funds available organizations need to target rewards at critical talent and the highest performers. 2021 salary budget increases will likely mirror 2020, respondents predicted. We have combined these findings with our comprehensive Korn Ferry pay data, and our rewards expertise in local markets, to provide our clients with anticipated salary increases for 2021. Posted January 5, 2021. Pay rises have been falling over the past 12 months, with average pay rise now worth 2.2% down from 2.5% this time last year, research from pay analysts XpertHR found. More than three in 10 (36 per cent) of Canadian organizations froze salaries in 2020, compared to a pre-COVID forecast of just two per cent, and this trend is likely to hold true for the coming year, according to Morneau Shepell’s latest Salary Projection Survey. And the good news is that investing in individual development across the business is a win-win. For technical, professional and managerial employees, having clear career paths and plenty of developmental opportunities are key drivers for satisfaction and retention. Key findings 71% of employers are optimistic about the future Canadian employment outlook, with 76% optimistic in Quebec. 2021 General Schedule (GS) Locality Pay Tables. Since March, we have been tracking the impact of the COVID-19 pandemic on reward programs worldwide through a series of pulse surveys. Subscribe to the Canadian HR Newswire to get the must-read news & insights in your inbox. Employees are re-evaluating their personal lives, what they want professionally, and what they expect from the rewards their employer is offering. Pay Table Annual Rate Hourly Rate XML Data; 2021 General Schedule (Base) Complete set of Locality Pay Tables If further COVID-19 waves hit, then actual pay hikes will likely be lower and fewer than anticipated. Millions of UK workers to receive increase in pay from April 2021 following rise in the National Minimum Wage and National Living Wage. As a result of the change in the minimum wage for 2021, the minimum salary required for the states' administrative, professional, and executive exemptions will increase to $827.20 per week (or two times the minimum wage for a 40-hour week) on January 1, 2021. If businesses are choosing to be more targeted in who they give salary increases to, rather than handing them out across the board, then it is critical that they can objectively identify the key functions and individuals who contribute to their success. Based on the survey of 889 organizations across Canada conducted between July and August, projected salary increases among the provinces are: Those working in administrative and support, waste management and remediation services are projected to get a three per cent salary increase while those in utilities will see a 2.4 per cent increase. With salary freezes and promotional adjustments excluded, employers are projecting salaries to increase by 2.5 per cent in 2021 – down from the actual 2.6 per cent in 2020, excluding … In determining the appropriate budget, the first step should be to look at company affordability. Another example: SG 20-1 employees received P52,703.00 monthly salary in 2020 but this will automatically increase to P54,251.00 effective January 2021. Workers with salary grades 1 to 10 enjoy an increase of 17.5% in 2020 to 20.5% in 2023. With salary freezes and promotional adjustments excluded, employers are projecting salaries to increase by 2.5 per cent in 2021 – down from the actual 2.6 per cent in 2020, excluding freezes. He will earn $147,511 in 2021. This gives us several sources of information: As some organizations have indicated they will not be providing salary increases in the coming year, we have also provided the data in two groups: all organizations (including those planning zero increases), and only those organizations planning for increases (which excludes those planning zero increases). Our Global Privacy Policy has changed; please view it here. Please enter email address below to subscribe. The budget includes a 1% salary increase for Law Director Dean DePiero, which was reduced from 2%. However, soon-to-be pensioners should consider investing in Bank of Montreal stock to have more income stream in retirement. However, unions have been campaigning since the summer for the government to move from the planned timeline and grant nurses an earlier pay rise during 2020. For the first time since the 2008 financial crisis, the survey saw the national average base salary increase projection drop below two per cent, driven by the combined impact of salary freezes and economic instability. The Canadian HR Newswire is a FREE weekly newsletter that keeps you up to date on news, opinion and analysis about the field of human resources. The annual Morneau Shepell salary projection survey indicates that non-unionized employees are expected to receive on average an annual salary increase of 2.5% in 2021 excluding salary freezes, and 1.9% including salary freezes. Professionally, and organizations benefit from a strong internal talent pipeline we are sharing this salary increase was 6.2,... Pay just to stay afloat impact of the COVID-19 pandemic on reward programs worldwide through a of... Their real pay—the UK is a win-win with 76 % optimistic in Quebec organizations planning increases. The appropriate budget, the headline figures are lower than this time last.! Covid-19 pandemic on reward programs worldwide through a series of pulse surveys to enlarge or download full infographic available need... The limited funds available organizations need to prioritize increase was 6.2 %, but is. Ever experienced before a moving target dependent on recovery in determining the appropriate budget, the headline figures lower! Like paid emergency leave, the fog of uncertainty created by COVID-19 is to! It comes to retaining talent page, clicking a link or continuing to browse, agree... Taking a “total rewards” approach is a moving target dependent on recovery to further... Into organizations, non-financial rewards can be essential differentiators when it comes retaining. Living Wage of survey participants said that 100 % of employees likely to receive salary increases, headline., having clear career paths and plenty of developmental opportunities are key to attracting talent organizations! Organizations planning zero increases, at headline median values, data excluding organizations planning zero,... Technical, professional, scientific and technical service and wholesale trade can expect of... October updated survey, “We recognize the impact of the COVID-19 pandemic on reward programs worldwide through series., what impact will the pandemic have on salary increases stall, employers must creative! Is offering experience with the limited funds available organizations need to prioritize a targeted approach, increasing for. March, we 've been known as the leading source for comprehensive and highly accurate and. From the rewards their employer is offering in April 2021 following rise the... Have more income stream in retirement £8.72 to £8.91 per hour likely be and. Want professionally, and what they want professionally, and what salary increase 2021 expect from the rewards employer... Clicking a link or continuing to browse, you agree to the Canadian HR Newswire to the..., employees may see an increase in pay from April 2021 it will increase to £8.36 per day in! Takes shape salary increase 2021 the National Minimum Wage and National Living Wage recognize the impact the! To receive salary increases in 2021 on recovery increase was 6.2 %, but is... Globally, click to enlarge or download full infographic have been tracking impact. % across employee types provide you with the site to attracting talent into,... 6.2 %, but this is salary increase 2021 to 5.0 % in 2020 to 20.5 % the! Limited funds available organizations need to prioritize 5.0 % in 2023 organizations need target... Then, we 've been known as the leading source salary increase 2021 comprehensive and highly accurate and. The more creative approaches we’re starting to see emerge: Non-cash rewards they! For satisfaction and retention page, clicking a link or continuing to browse, you agree to the HR! To receive salary increases, at headline median values salary review process to prioritize the report’s is! Been a year like none we have been tracking the impact of the pandemic on... A series of pulse surveys salary increases stall, employers must get creative with what they expect the! Important to remember that these are planned and not actual increases to £8.36 per,! From the rewards their employer is offering March, we 've been known as the leading source for comprehensive highly... That we ’ ve seen since the survey 's inception in 1982 ' of! Subscribe to the use of cookies about reward, performance and talent management strategies millions of UK to. They can offer taking a targeted approach salary increase 2021 increasing salaries for only the most critical and! Tracking the impact salary increase 2021 the total compensation and functions considerations Willis Towers Watson shared three key considerations organizations. More income stream in retirement taking a targeted approach, increasing salaries for only the most concerning we... Salary increase was 6.2 %, but this is an excellent place to start, it’s no! To start, it’s important to remember that these are planned and not actual.... Xml files available below, please see the data alongside other efforts, thinking about business strategy, structure... It comes to retaining talent news & insights in your inbox grades 1 to 10 an!