Overview of Engineer Salaries in Canada

Engineering has long been recognized as one of the most stable and well-compensated professions in Canada. The demand for skilled engineers spans a variety of industries, including technology, construction, energy, manufacturing, and infrastructure. In 2025, the average salary for an engineer in Canada is around $84,931 per year, or $43.55 per hour. Salaries can vary significantly depending on factors such as experience, geographic location, industry, and level of specialization. In this comprehensive breakdown, we will explore the typical salaries for engineers in Canada, the impact of experience, additional compensation, and the specific roles and fields of engineering that shape salary expectations.

General Overview of Engineer Salaries in Canada

The average salary for an engineer in Canada is estimated to be approximately $84,931 annually. While this serves as an overarching estimate, the actual salary can vary depending on various factors, including the type of engineering discipline and the province in which the engineer works.

• Average salary: $84,931 per year or $43.55 per hour
• Entry-level salary: Typically between $45,000 and $60,000 per year
• Experienced salary: Experienced engineers can earn between $75,000 and $85,000 per year
• Top earners: Engineers with extensive experience can earn from $100,000 to $150,000 or even more
• Additional compensation: Engineers may receive additional pay through bonuses, profit sharing, commissions, or other forms of compensation, which can add about $6,917 annually to their total earnings.

Entry-Level Engineer Salaries

Entry-level engineers, typically those with less than five years of experience, generally start with a salary between $45,000 and $60,000 annually. The variation in this range is influenced by several factors, including the industry, geographical location, and the specific engineering field. For instance, entry-level engineers in large metropolitan areas like Toronto, Vancouver, or Calgary may earn on the higher end of the spectrum, due to the higher cost of living and the concentration of engineering firms and industries.

In addition to the base salary, entry-level engineers may also benefit from bonuses or performance incentives, though these are typically smaller compared to those received by more experienced engineers. However, these bonuses can still significantly boost an engineer’s earnings during the early stages of their career.

Top-tier entry-level engineers, especially those working in fields like software engineering or petroleum engineering, can earn salaries as high as $66,500 per year. In addition, the potential for salary growth is significant, as engineers with a few years of experience can see their pay rise substantially as they move into mid-career positions.

Mid-Career Engineer Salaries (5+ Years of Experience)

Engineers with five or more years of experience generally earn between $75,000 and $85,000 annually. At this stage of their careers, engineers are typically expected to take on more complex tasks, manage projects, and, in some cases, supervise junior engineers or other technical staff. Mid-career engineers often develop a specialization or become proficient in specific areas of engineering, which can further influence their earning potential.

For example, an electrical engineer with five to ten years of experience might earn more than a civil engineer with the same level of experience, as electrical engineering tends to be in higher demand in certain industries such as telecommunications and electronics. Additionally, engineers in sectors like mining, oil and gas, and software development often see salaries on the higher end of the mid-career range.

While the salaries for mid-career engineers are generally stable, those with high-demand skills or who work for large corporations may earn more due to their unique expertise or the size and success of their employer. Moreover, these engineers may have access to additional forms of compensation, including bonuses and profit-sharing arrangements, which can further increase their total earnings.

Experienced Engineers (10-20+ Years of Experience)

Experienced engineers, particularly those with ten or more years of experience, can command salaries ranging from $100,000 to $150,000 annually, or even more. Engineers at this stage are typically seen as subject-matter experts in their respective fields, with significant technical knowledge and leadership abilities. These professionals are often involved in high-level decision-making, strategic planning, and project management.

In some engineering disciplines, such as petroleum or chemical engineering, experienced engineers can earn salaries at the top of the range due to the specialized skills and expertise required to work in these industries. For instance, senior engineers working in oil and gas extraction or heavy industrial projects may receive salary packages that are significantly higher than the average.

In addition to the base salary, experienced engineers often receive generous bonuses, stock options, or profit-sharing benefits, which are offered by larger companies or in sectors where profitability is high. These additional compensation packages can significantly increase an engineer’s total pay and are one of the key reasons why experienced engineers enjoy some of the highest salaries within the Canadian workforce.

Additional Compensation for Engineers

In addition to base salaries, many engineers in Canada receive additional compensation in the form of bonuses, commissions, profit sharing, and other incentives. These additional benefits can significantly increase an engineer's overall compensation and are particularly common in industries with strong profit potential, such as technology, manufacturing, and energy.

• Bonuses: Many engineers, particularly those working in project management, research, or senior technical roles, are eligible for annual or performance-based bonuses. These bonuses can range from a few thousand dollars to a percentage of an engineer's base salary, depending on the company and the individual’s performance.
• Profit Sharing: Profit-sharing programs allow engineers to receive a portion of a company’s profits. This can be a highly lucrative benefit, particularly in high-demand sectors like energy, technology, or natural resources.
• Commissions and Tips: Engineers working in sales or customer-facing roles may also receive commissions based on the sales of technical products or services. Although less common, these forms of compensation can significantly boost an engineer's income.

According to some estimates, additional compensation can add as much as $6,917 annually to an engineer’s earnings. The actual amount will depend on the nature of the engineer’s work, the company’s compensation structure, and the industry in which the engineer operates.

Impact of Industry on Engineer Salaries

The salary of an engineer in Canada can be significantly influenced by the specific industry they work in. Engineers employed in high-demand sectors, such as oil and gas, mining, or technology, tend to earn higher salaries compared to those in lower-demand industries. Below are some common industries in Canada and their impact on engineer salaries:

1. Technology and Software Engineering

The technology and software industries are among the highest-paying sectors for engineers in Canada. Software engineers, in particular, are in high demand due to the growing reliance on technology in every aspect of business and daily life. These engineers can earn top-tier salaries, with salaries for experienced software engineers regularly exceeding $100,000 per year.

2. Oil, Gas, and Mining

The oil, gas, and mining sectors traditionally offer some of the highest salaries for engineers in Canada. Petroleum engineers, in particular, can expect to earn top salaries, with some even reaching $150,000 or more annually. Engineers working in these sectors may also receive extensive benefits, including bonuses and profit-sharing opportunities tied to the profitability of the company or the sector.

3. Civil and Construction Engineering

Civil engineers and construction engineers in Canada typically earn competitive salaries, with many engineers in this sector earning between $70,000 and $100,000 annually. Salaries for civil engineers can vary depending on the scope of the projects they work on, as large-scale infrastructure projects may offer higher pay and more benefits compared to smaller-scale projects.

4. Manufacturing and Industrial Engineering

Industrial engineers and manufacturing engineers play critical roles in optimizing production processes, improving efficiency, and minimizing costs for businesses. While salaries for engineers in these sectors can range from $60,000 to $100,000, engineers working for large multinational companies or in high-demand industries may earn more, particularly if they have advanced technical or managerial skills.

5. Environmental Engineering

Environmental engineers work on projects related to sustainability, waste management, and pollution control. These engineers generally earn competitive salaries, with experienced professionals earning between $75,000 and $100,000 annually. The growth of environmentally-focused industries and projects has led to an increased demand for environmental engineers in recent years.

Geographical Impact on Engineer Salaries

While salaries for engineers in Canada are generally competitive, they can vary depending on the province or city in which an engineer works. For example:

• Ontario and British Columbia: Engineers working in Ontario (particularly in Toronto) and British Columbia (especially in Vancouver) tend to earn higher salaries due to the high demand for engineering talent in these urban centers. The cost of living is also higher in these areas, which is reflected in the salary levels.
• Alberta: Alberta, known for its oil and gas industry, offers some of the highest salaries for engineers, particularly for those specializing in petroleum engineering. However, fluctuations in the oil industry can impact salaries in this region.
• Quebec: Engineers in Quebec may experience slightly lower salaries compared to those in Ontario or British Columbia, but the cost of living is also lower in many parts of Quebec, which can offset this difference.

Conclusion

Engineers in Canada can expect to earn competitive salaries, with entry-level positions starting at around $64,170 annually and experienced professionals earning $75,000 to $85,000 per year, and those with extensive experience or in high-demand fields earning over $100,000 annually. Additional compensation in the form of bonuses, commissions, and profit sharing can further boost an engineer’s total pay, bringing it to $86,781 annually or more.

The salary for an engineer is heavily influenced by industry specialization, geographic location, and experience level. High-demand sectors such as software engineering, petroleum engineering, and industrial engineering typically offer the highest salaries, while engineers working in industries like construction, manufacturing, or environmental engineering can still earn competitive wages. The potential for career growth and salary advancement in engineering is significant, with experienced engineers having opportunities to earn well over $100,000 annually.

In conclusion, engineering remains a highly lucrative profession in Canada, with strong demand for skilled engineers across the country. Whether you're just starting your career or you're an experienced professional, engineering offers a wealth of opportunities and the potential for significant financial rewards.