Canada’s Average Salaries Set for Notable Increase This Year

Businesses in Canada are anticipating an average salary increase of three percent this year, excluding salary freezes. This forecast comes from Normandin Beaudry’s salary increase pulse survey, which includes data from nearly 400 organizations gathered in the fourth quarter of the previous year.

Salary Increase Projections

This year’s projections reflect a slight decrease from earlier expectations of a 3.1 percent increase for non-unionized employees, as indicated by summer survey results.

Key Insights from the Survey

• Approximately 75% of organizations plan to maintain their initial salary increase budgets.
• 16% of organizations reported budget reductions.
• 10% are considering increasing their initial salary budgets.

Darcy Clark, a senior principal in compensation at Normandin Beaudry, noted that ongoing economic and trade uncertainties are causing companies to adopt a cautious approach to salary budgets. These trends illustrate a need for careful financial planning in response to a fluctuating economic landscape.

Conclusion

The report, released by The Canadian Press on January 21, 2026, signals a pivotal moment for Canadian organizations as they navigate budgetary constraints while aiming to retain talent in a competitive market.