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Canada PR Holders Are Earning More Compared To Work Permit Holders

18 Dec 2019


Canada PR Holders Are Earning More Compared to Work Permit Holders

Previous work experience in Canada creates a huge difference in the entry-level salaries that new immigrants earn, revealed by the Statistics Canada study.

The report seeing at results for permanent residents of Canada who were granted to Canada in the year 2016 observed that those with previous work Canadian experience had the biggest average entry wages.

The latest permanent residents who had both work experience and studies in Canada had an average entry wage of CAD 39,800 per year and this is one year later their arrival, while those with Canadian work permits had only an average income of CAD 38,100 per year. These wages are related to those of the complete Canadian population, says Statistics Canada.

The average entry wage for the Year 2016 cohort on whole was CAD 25,900 in the year 2017, and the study told was the biggest recorded among newcomers admitted since 1981. This result, however, dropped well short of the Canada population’s average wage of CAD 36,100 in the year 2017.

Greater Work Experience in Canada Results in Greater Earnings

The Statistics Canada announced that the noticed growth in entry-level wages might be partially defined by the fact a growing number of non-permanent resident holders with work experience in Canada are transitioning to Canada PR.

From the admission year 2007 to the admission year 2016, the number of newcomer tax filers 1 year after coming who had Canadian work experience increased by 166 percent meanwhile the number of newcomers without work experience increased by 2 percent, the study notes.

Wages of Immigrants usually grow with the number of years since obtaining Canada PR. Looking back at newcomers who were allowed to Canada in the year 2007, their average wage 1 year after their landing was CAD 20,400. By the year 2017, the average wage of the same cohort approached CAD 33,500, and growth of 64%.

The study states 90% of Economic newcomers who were allowed to Canada in the year 2012 were still in the corresponding province after 5 years. Those without pre-admission work experience in Canada had a holding rate of 81%.

Overall, 86% of newcomers who were allowed in 2012 filed a 2017 year tax return in the corresponding province where they initially settled as Canadian permanent residents.

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