Many full-time workers across Canada have noticed a slight increase in their paycheques in 2025, thanks to a 4.4% rise in average earnings, according to Statistics Canada. As of April 2025, the average weekly earnings hit $1,297.44, translating to about $67,466.88 annually before taxes.
But while these numbers suggest financial progress, not all regions are experiencing this growth equally. A closer look reveals that some provinces and territories are significantly outpacing others, often due to sector strength, geographic factors, and working conditions.
Ontario Salaries Are Above Average—but Not Among the Highest
Ontario workers are doing better than the national average, with weekly earnings of $1,329.64, equating to about $69,141.28 annually. This places Ontario roughly $1,674 more per year above the national mean.
However, this doesn’t put Ontario at the top. The province ranks fifth overall, trailing behind Nunavut, the Northwest Territories, Yukon, and Alberta. These areas, especially the northern territories, offer significantly higher wages due to remote working conditions, labour shortages, and in-demand industries like mining and public sector services.
The Full Breakdown: Average Salaries by Province and Territory
Here’s how the rest of Canada stacks up in terms of average earnings in 2025:
| Region | Weekly Earnings | Annual Earnings |
|---|---|---|
| Nunavut | $1,734.91 | $90,215.32 |
| Northwest Territories | $1,733.99 | $90,167.48 |
| Yukon | $1,484.53 | $77,195.56 |
| Alberta | $1,362.04 | $70,826.08 |
| Ontario | $1,329.64 | $69,141.28 |
| British Columbia | $1,310.45 | $68,143.40 |
| Newfoundland and Labrador | $1,279.31 | $66,524.12 |
| Saskatchewan | $1,260.36 | $65,538.72 |
| Quebec | $1,250.26 | $65,013.52 |
| New Brunswick | $1,180.48 | $61,384.96 |
| Manitoba | $1,162.42 | $60,445.84 |
| Nova Scotia | $1,157.42 | $60,186.84 |
| Prince Edward Island | $1,125.29 | $58,515.08 |
These figures show that Canada’s highest earners are in the territories, while eastern provinces like Prince Edward Island and Nova Scotia remain at the lower end of the income scale.
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Why Are Salaries Rising in 2025?
Statistics Canada attributes the salary increases to several key factors:
- Expansion in high-paying sectors like healthcare, tech, and construction
- More full-time employees working longer hours
- Workforce shortages, especially in skilled trades and professional services
In Ontario, industries such as healthcare, finance, IT, and manufacturing are driving growth. The post-pandemic recovery in these sectors has led employers to offer higher wages to attract and retain talent.
Cost of Living Dampens Ontario’s Salary Advantage
Despite earning more than the national average, many Ontario residents feel financially stretched. In cities like Toronto, the cost of living has become one of the highest in the country. For instance, monthly rent for a one-bedroom apartment can exceed $2,500, and that doesn’t include utilities, transit, or food.
So while salaries may seem high on paper, daily expenses often eat into those earnings, leaving limited disposable income for many workers.
Territories Offer Top Wages—But at a Cost
The territories lead the country in average earnings, with Nunavut and the Northwest Territories surpassing $90,000 annually. However, this comes with trade-offs:
- Harsh weather and geographic isolation
- Limited access to infrastructure and services
- High cost of goods and housing
These high salaries often reflect the need to attract workers to remote and challenging environments, not necessarily an improved quality of life.
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Provinces with Lower Wages May Offer Lower Living Costs
Provinces like Prince Edward Island, New Brunswick, and Nova Scotia have lower average salaries, but these regions often offer more affordable housing and lower general living expenses, especially outside major cities. This makes them appealing for workers prioritizing lifestyle over earnings.
Who Really Benefits from the 2025 Wage Increase?
The increase in average salaries is promising, especially for full-time workers in fast-growing industries. But the benefits aren’t distributed equally:
- Urban professionals in high-demand sectors tend to see the greatest gains
- Rural and lower-income workers, or those in stagnant sectors, may not experience much of a change
- Younger workers and new entrants to the job market may face higher starting wages but also tougher competition for housing and services
Economic Outlook: Rising Pay, But Mixed Affordability
The salary rise in 2025 is a sign of economic resilience and workforce demand. However, regional disparities and living cost pressures continue to challenge workers across the country.
Ontario, while economically strong, still struggles with affordability, particularly in urban areas. Meanwhile, territorial pay advantages are tempered by harsh living conditions. In contrast, smaller provinces may offer balance, even if their salaries are lower.