So, you’ve decided you want to move to Canada and you’re starting your job hunt. While Canada recently announced plans to limit the number of immigrants, it still has need of skilled labour. The question is, if you meet the criteria – will you be better off than in the UK? We’ve done some number-crunching to compare average wages in Canada and the UK, taxes on these wages and the cost of living.
Step 1: Canada vs. UK wages
The average hourly wage in Canada in 2021 was $30.31, up from $27.70 in 2017. Salaries were highest in the utilities industry, earning on average $45.99 an hour, and construction jobs were just above the average at $31.68. In comparison, the average hourly wage in the UK in 2021 was £15.28, over 11% lower than in Canada.
In 2021. the average salary in the UK was 20% lower than in Canada.
StatCan’s most recent census data shows the average salary in Canada in 2021 was $68,400, though that varied significantly from province to province. The highest-earning province was Alberta, where workers earned $77,000 on average. The lower-earning province was New Brunswick, where the average salary was $60,000. The average salary in the UK in 2021 was £31,285, according to Statista, 20% lower than in Canada.
Most people who are granted entry to work in Canada, however, are in higher level jobs with several years’ experience, so how do these compare?
Comparing figures is only half the story – the constantly moving exchange markets mean that you don’t know for certain what your money will get you unless you secure a fixed exchange rate. Find out more in the free Property Buyer’s Guide to Currency.
| Occupation | Salary Canada | Salary UK | Canada + or – % | |
| Average Salary | $68,400 (2021) | £39,300 | £31,285 (2021) | +23% |
| Electrical engineer | $77,000 | £42,700 | £35,000 | +18% |
| Graphic Designer | $50,000 | £27,200 | £25,000 | +8% |
| I.T. | $93,000 | £51,600 | £45,000 | +13% |
| Mechanical Engineer | $73,000 | £40,500 | £34,000 | +16% |
| Midwife | $65,000 | £36,000 | £32,000 | +11% |
| Accountant | $57,000 | £31,600 | £31,000 | +2% |
| Retail Manager | $47,000 | £26,000 | £26,000 | 0% |
| Surveyor | $81,000 | £45,000 | £36,000 | +20% |
| Teacher | $62,000 | £34,400 | £34,000 | +1% |
The data in the table above is sourced from PayScale’s Canada and UK figures.
The table clearly demonstrates that engineering salaries are higher in Canada. The average salary in Canada is 11% higher than in the UK, and average salaries in are higher across the board, with few exceptions.
How do the average wages in Canada stack up to those in the UK?
Step 2: Tax on average wages, Canada vs. UK
According to the OECD, as a percentage of GDP total tax take in Canada is just over 33% while in the UK it is more than 35%. Using the SalaryAfterTax calculator for Canada and UK, you can see this in the taxes on an individual’s salary below. However, despite contributing more in tax, pensions and healthcare insurance combined in Canada, because of the higher salaries, you are still more than £6,000 better off in Canada than in the UK, based on average wages and the current exchange rate.
| Canada | UK | ||
| Gross Income | $68,400 | £31,285 | |
| Tax (Fed and provincial) | $11,481 | £3,743 | |
| Health insurance | $4,911 | £1,497 | |
| Total contributions | $16,372 | £5,240 | |
| Take home pay | $52,028 (approx £28,860) | £22,050 |
Step 3: Cost of living, Canada vs. UK
While you are earning more money for the same job in Canada even after the higher tax, does that actually increase your buying power? The answer is less clear than it was a few years ago, when cost of living in Canada was broadly cheaper than the UK.
According to Numbeo, the largest collection of cost-of-living data for destinations around the world, you’ll find aspects of your life, such as eating out, transport costs and utilities are cheaper in Canada, while others, such as rent and groceries, are more expensive. You can take a look at Numbeo’s Canada data and Numbeo’s UK data for yourself.
For the most accurate picture for your circumstances, compare the city you are leaving in the UK to the province you plan to move to in Canda. There are significant regional differences, especially if you are living in London, which has the 11th highest cost-of-living index in the world. In comparison, Canada’s most expensive region, Victoria, is 43rd.
There aren’t just fantastic average wages in Canada – residents also enjoy the world’s best healthcare. Find out how to access it in our Guide to Healthcare Abroad.
Canada’s higher wages offset the country’s taxes, leaving many Brits who relocate to the country better off each month. While the cost-of-living in Canada has increased in recent years, your higher salary may still end up leaving you better off after starting your new life in North America. You should investigate your unique circumstances, as where you are moving from and plan to move to will have a significant impact on how much you stand to gain.
