Doctor (Physician) Salaries – Not as High as You Think
Once upon a time, when I was still in junior high school, I aspired to be a doctor. Why? For all the wrong reasons. First, because my parents wanted me to be one, and second because it was a profession that made a lot of money. Fortunately, after doing some research in high school about what’s required to be a doctor, I realized that being a doctor is not about the money, it’s about the passion for practicing medicine.
It takes real commitment to be a physician. To become a specialist, it takes at least a decade of training/education, long hours, low pay, and a large amount of loans (for some) to finally make it to the big leagues. Even once you’ve graduated, most specialties require long hours along with periodically being on call.
Back to the topic at hand, doctor salaries. When most of you think about doctor salaries, most think that they are paid like rock stars. There are some numbers thrown around like some make $500,000/year and more, which is true for some, but not for all. While the initial figures are high, doctors have to pay a rather large overhead fee which doesn’t include income tax. This overhead fee includes insurance coverage, a provincial government fee and other misc expenses.
Below is a table that is a bit dated (2005), but includes the average salaries of various doctor specialties in Canada. I added a third column to the original table to include the overhead as a percentage of their salary.
|Gross and net earnings rose in 2005|
As you can see from the table, the average doctor pays around 35% of their salary to overhead fees. What’s left over is then taxed at the highest income tax rate. Mind you, making a $155,000+ salary (in 2005) is pretty darn good, but for the work and time commitment that doctors put in, they deserve more.
Back to you, was your impression that doctors make more than they actually do?
Any doctor readers out there? Have doctor salaries increased much since 2005?
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