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Quebec Employers Council 2012 salary forecasts : higher increases than last year are expected despite economic uncertainty

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Montreal– The 2.9% average salary increases that Quebec employers expect to award next year will be equal to or slightly higher than in 2011, despite the uncertainty related to the global economy.

This is the main trend emerging from the Special Report on 2012 Salary Forecasts, the annual Quebec Employers Council publication prepared by the leading human resources consulting firms in the province (Aon Hewitt, Mercer, Morneau Shepell, Towers Watson). The report was released in Montreal today at a breakfast meeting attended by more than a hundred human resources managers and professionals.

Like last year, the report notes there will be no significant regional and sectoral disparities in wage increases. Similarly, there is not likely to be significant disparities in salary hikes between the various employment categories (technical and administrative personnel, operational and production staff, professionals, executives, senior executives, etc.).

“In a global-competitiveness context, where access to an available, top-notch and cost-competitive labour force is a priority, employers have to be able to benefit from the best possible conditions (particularly in terms of payroll taxes) to create wealth and thereby provide their employees with competitive wages,’’ remarked Quebec Employers Council president Yves-Thomas Dorval.

$173 more per employer in payroll taxes

It is noteworthy in this regard that the expected salary increases in 2012 will cost employers  an average of $173 more in payroll taxes for every employee, taking into account the various fees announced for next year (contributions to the Occupational Health and Safety Fund, Quebec Parental Insurance Plan, Employment Insurance, Quebec Health Fund, etc,).

In the second edition of its Report Card on Quebec Prosperity issued last August, the Quebec Employers Council noted the province’s weak competitiveness in this category, awarding Quebec a C- in manpower costs (a mark even lower than in 2010, when Quebec received a “C”). In this regard, Quebec employers pay about 30% more a year in payroll taxes than their Ontario counterparts or the Canadian average.

The Quebec Employers Council annual special report on salary forecasts is available in French and English on the organization’s website (

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The Quebec Employers Council brings together many of Québec's largest companies and the vast majority of sector-based employers' groups, making it Québec's sole employer federation.

Information and interviews:
Patrick Lemieux
Consultant - Communications
Cell.: 438 886 9804

October 13, 2011

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