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<\/p>\nAs the cost-of-living continues to soar in Canada, workers may be wondering what kind of salary increase they could be getting this year.<\/p>\n
Actuarial consulting company Normandin Beaudry revealed the findings of its Salary Increase Pulse Survey on Wednesday. Nearly 400 Canadian companies participated in the survey during the last quarter of 2025.<\/p>\n
Unfortunately for employees, the findings show that Canadian organizations are expected to continue slightly scaling back their salary increase budgets.<\/p>\n
The report projects an average salary increase of three per cent in 2026, excluding raise freezes. This is a further decrease of 0.1 per cent compared to the results from summer 2025.<\/p>\n
According to the report, this aligns with the steady decline observed since 2023.<\/p>\n
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Change in average salary (CNW Group\/Normandin Beaudry)<\/p>\n
The report broke down the average salary increase by province. Employees in Quebec are forecast to receive the highest raises in Canada at 3.5 per cent, followed by Ontario (3.3 per cent), Alberta (3.3 per cent), and B.C. (3.2 per cent).<\/p>\n
\u201cAs economic and trade uncertainty continues to shape Canada\u2019s market, organizations are taking a cautious, gradual approach to salary increase budgets,\u201d said Darcy Clark, senior principal, compensation at Normandin Beaudry.<\/p>\n
\u201cAt the same time, heightened expectations for transparency are pushing organizations to refine and clearly articulate the holistic employee experience and total rewards they offer.\u201d<\/p>\n
Normandin Beaudry found that nearly three-quarters of organizations (74 per cent) are not planning any changes to their initial salary increase budget projections from last summer.<\/p>\n
Of the 26 per cent of participating employers planning adjustments to their initial budget, more than half will be making a reduction, and the rest are intending to increase their initial budget.<\/p>\n
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Zamrznuti tonovi\/Shutterstock<\/p>\n
In addition to the traditional salary increase budget, 42 per cent of respondents have allocated an average of 0.8 per cent of payroll for additional budget funds.<\/p>\n
The report found that employers are also focusing internally on their rewards strategies for employees in 2026.<\/p>\n
Strategies they\u2019re focusing on include:<\/p>\n
Employee engagement: 58 per cent
\nCompliance with legislative requirements (pay equity and transparency): 47 per cent
\nEmployee communication: 42 per cent<\/p>\n
Normandin Beaudry said that almost half of organizations (47 per cent) expect their annual incentive plan to pay at or above target, and 35 per cent of organizations plan on increasing their workforce in 2026.<\/p>\n