When was the last time somebody asked you, 鈥淗ow much do you make?鈥
If you鈥檙e like many Canadians, the question may have taken you aback, especially if the individual wasn鈥檛 a close friend or family member.
Is there ever a good time to discuss your salary, though?
Below, I鈥檒l outline some basic salary disclosure etiquette, explain some cultural differences I鈥檝e noticed in my travels, and go over the pros and cons of discussing your salary with coworkers.
With current high inflation rates and the recent federal minimum wage increasing to , it鈥檚 likely that more people have been discussing (and questioning) their current salaries and how fair they are.
I鈥檝e also noticed an interesting trend on social media platforms such as TikTok, Instagram Reels, and YouTube shorts where content creators and ask them questions like:
Some participants are more than willing to share these details or at least give a ballpark figure, while others take offence and decline to say anything.
As a general rule, it鈥檚 considered bad etiquette and often rude to approach a stranger and ask them about their personal finances. It鈥檚 a very direct and personal question, similar to asking a stranger what their age or weight is.
This is especially true in developed economies such as Canada, where money often correlates to an individual's social status.
In Canada, , and only the CRA knows your exact income, with the exception being certain government employees such as the ones found on the . However, tax records are publicly available in some Nordic countries for all taxpayers.
For example, in Norway, any taxpayer over 16 can log into the and view the records of every other taxpayer in the country. Tax records have been public in Norway since 1863.
Because of this, you may find that those living in Nordic countries are more open about their income, taxes, and salaries.
In some Asian countries such as China, . For example, a parent might inquire about their child鈥檚 or their significant other鈥檚 income to see if they鈥檙e a good match and can provide a good living.
I鈥檝e heard from some of my friends who were working and living in China that their partners鈥 parents have asked them how much money they earn.
If you鈥檙e worried that discussing your salary with coworkers will get you fired, .
Discussing salary, either with colleagues or with your employer, can have several potential benefits:
But be careful, discussing salary can be a delicate topic and comes with several potential downsides:
If you鈥檙e curious about what a certain position pays at a particular company, you can start by researching average salaries on online salary databases.
These databases have users submitting their own salaries anonymously. The more users that submit for a specific position, the more accurate the salary data tends to be. In general, I would trust the salary accuracy of a position with more submissions over one with less.
Christopher Liew is a CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers on his .
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