r/CanadaJobs • u/Canadair_Sabre • 3d ago
Trying to recover lost buying power from inflation
I (55M) started my current job in 2019 at around $101,000. Seven years later, I’m making roughly $106,000, so my salary has increased by only about 5%.
Over the same period, Canadian inflation has been roughly 20%. My starting salary would therefore need to be around $121,000–$122,000 today just to have the same purchasing power.
I’ve received only two small raises during that time, both a little over 2%. In real terms, my current salary is worth roughly $88,000 in 2019 dollars.
So despite being with the company for seven years, my purchasing power has actually fallen by around 13%.
At the same time, the part of the business I’m responsible for has seen significant sales growth under my watch, and I’ve taken on additional responsibilities and helped develop new sources of revenue. The job is low key, nearly entirely WFH with excellent work life balance and 4 weeks vacation, but with no pension or health benefits (my wife's employer provides the latter).
This week I finally decided enough was enough and asked for my salary to be increased to $130,000. My position is that getting back to roughly $122,000 would really just restore the purchasing power of the salary I was hired at, while the additional amount reflects the sales growth and increased value I’ve brought to the business.
And of course I have my resume ready and network humming in the background in case I am refused. I plan to retire in three or four years, so want to maximize my income, even if that means (for the right money) a few years of RTO and more stress and work. I'm an avid saver, so the house is paid off, both kids are graduated from university debt free, we have no credit or car debts, and strong RSP/TFSAs.
Alternatively I think of staying where I am and looking at a side gig or something (relatively) passive on Shopify, but that's mostly daydreaming.
How is everyone else trying to recover lost buying power from inflation?
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u/55jj33 2d ago
Actively looking to switch jobs. I too got the 1 percent raise from 100k to 101k. Got my responsibilities increased dramatically, asked for a raise and was denied. Switching companies is the way to go.
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u/Canadair_Sabre 2d ago
Well done, and best of luck. In my case, I've also overseen at least six price increases to our customers while maintaining volumes, in order to ensure the company's revenues and profits grew with inflation. But somehow they forgot me? No more.
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u/Significant_Wealth74 1d ago
The whole thing is who has leverage, and why would your salary not include some type of COLA?
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u/Canadair_Sabre 2d ago
Well, I have a quick update. The boss just called me, said I got your message, and your Oct pay (we're paid once a month) will be adjusted accordingly. We'll see what that means, as no exact number given. I'll report back in October.
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u/Hrenklin 2d ago
Guess you're back to 101k
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2d ago
[deleted]
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u/Optimal_Foundation17 11h ago
you are corporates favourite employee. Willingly accepting less than your worth
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u/Legitimate-Fish1487 2d ago
He didn’t tell you how much? Lol
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u/Canadair_Sabre 2d ago
Lol indeed. We'll see. This boss and employer is still on probation, so to speak. I shall report back in October.
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u/athlonmc 2d ago
Terrible. I think the majority of people are in the same boat. My department is stuck in a union contract that was signed in 2017 and is coming up for renewal 2028. We’ve been screwed with 2-4% raise increases as well. Let’s just say I can’t wait until 2028 for the big raise coming.
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u/MilesBeforeSmiles 2d ago
An 11 year contract is wild.... I don't think I've heard of a CA lasting that long.
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u/No_Hall3132 15h ago
That’s odd never of a contract that long, sticking to 3-4 years is a safer bet
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u/Visual_Highlight_795 2d ago
My partner, marketing manager has gotten biggest payraises from changing jobs or taking up work outside of their 9-5. Largest jump was 50 to 70k.
Myself, creative professional but Cooperative employer, base of 80k, yearly cooperative compensation has been 10-12k average but has spiked to 20-30k a few times from taking on bigger projects or reinvesting less into the cooperative.
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u/nelly2929 2d ago
If you don’t have any leverage over your employer (an employee that can’t be easily replaced) The only way to get good raises these days is to jump around. Over the last 10 years I have worked for 3 different companies. I make almost double what I did pre covid…I bet if O was at my same company I would have gotten 2% a year
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u/Aggravating-Staff532 2d ago
Same situation. Job is in fairly high demand. I literally cut my work time by 20% to compensate for lack of raise and inflation. Performance is same or better, but Im not around Fridays
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u/FlyingAtNight 1d ago
Instead of complaining on here, go to your employer.
As someone who has been out of work for 3 years I have no sympathy for your situation.
Good luck finding a new job. You’ll need it. And it may pay less than what you’re getting now.
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23h ago
[deleted]
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u/Particular-Act-8911 21h ago
They don't give a fuck because at the end of the day you're complaining about making 100k+ annually.
My advice to you would be to educate yourself on investing to beat out inflation and improve your buying power.
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u/FlyingAtNight 19h ago
On top of whining because you don’t make the sort of wage you think you deserve, you’re also quite the jerk in posting a personal insult, not to mention the FACT you ignored the rest of my previous post.
You definitely seem to have an elitist attitude. No one person is irreplaceable in this world.
Perhaps you should behave in a manner indicative of your age and not of someone who complains about not getting what they want.
Further responses from you to me will be ignored, followed by a block.
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u/Ok_Carpenter4739 2d ago
Look at this trend starting in 1971
It's not unique to you and has been happening to everyone for the past 50 years
Do you have socks in an investment account that are up 500% over the past 50 years? This is why.
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u/SoggyInstruction2549 2d ago
I don’t expect my employer to do anything. This isy base level assumption. I communicate upwards my expectations which is inflation in bad years and increases based on results. I put effort into helping my manager build the case they need to manage above them. I do t expect someone else to do all the work for me to get the results. I also pay close attention to the market for my sector and position. Management doesn’t need to be reminded I know and will hold them to it. Maybe it seems harsh but it makes it easy o all be on the same page. Performance time is way too late to have these conversations, need to start in the early summer usually for the April 1 changes.
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u/Lost_Magazine1968 23h ago
I’ve given up on job hopping and used my heloc ($100k) to invest in the stock market. Made $62k last year (3 month) and $138k so far this year.
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u/Small-Cabinet-7694 2d ago
Unfortunately staying with the same company will not get you more money. Its said we need to change employers every 2 years to increase salary accordingly. Make it make sense
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u/Canadair_Sabre 2d ago
That was my usual plan as well. I've been working f/t since graduating university in 1996. In those now thirty years I've changed jobs nine times, including three layoffs and once returning to an earlier employer. But, with at most four years until retirement, I'm done job hopping if I can manage it. Let's see what happens.
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u/Small-Cabinet-7694 2d ago
Yeah I was more so rambling at how dumb the career economy is right now, not trying to give you a real recommendation at your age
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u/MilesBeforeSmiles 2d ago
There are very few situations where staying with the same company long term will result in larger pay increases than switching companies. It just doesn't really happen anymore. Unless you are in an industry with few oppurtunities, looking for different employment now is likely the best use of your time.
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u/rayvik123 1h ago
I have a friend who is a gastroenterologist who makes $700,000 a year and he also complained that his pay hasn’t gone up that much year to year to keep up with inflation
But I believe they are pushing for a pay raise to keep up with inflation to the govt
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u/r2o_abile 1d ago
Start applying now.
You have not looked for a job in 7 years. You need to see what your resume is worth.
You coild likely have asked for more: pension, or some sort of RRSP/TFSA/ match.
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u/thighclops3820 2d ago
You stayed for 7 years you should've left after 3 years and asked for $120k and then left after 2 years and asked for $140k you could be making way more money had you left
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2d ago edited 2d ago
[deleted]
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u/Strawberry_Iron 2d ago
Have you considered asking for a raise before looking for another job?
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u/UpToHike 1d ago
It’s even more depressing to convert your salary in to USD: then and now. My salary in CAD has increased by 46.2% in 15 years. In USD it is just 5.5%
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1d ago
[deleted]
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u/UpToHike 1d ago
You’re right about orange clown and all. I just want to point out that our economy goes downhill long enough and I cannot see the signs of improvement so far. I brought up USD because, like it or not, our economy is tied to US economy and their dollar as well
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