[Canada] Employers upping 2025 salary budgets by 3.4%

A new survey has revealed that Canadian employers’ 2025 salary budgets are increasing by an average of 3.4 per cent, down slightly from 3.6 per cent in 2024, Benefits Canada reports.

The research -  by Normandin Beaudry - polled more than 700 employers. It found more than two-fifths (44 per cent) plan on granting an average additional budget of one per cent for the 2025 compensation cycle, unchanged from 2025. 

The budgets will be used to apply market-driven adjustments (65 per cent), retain employees in critical roles (51 per cent) and differentiate compensation for top performers (49 per cent), among other purposes.

Employers in the high technology sector are reportedly planning the highest average budget increase (4.3 per cent), followed by telecommunications and data processing/warehousing (3.9 per cent), professional, scientific and technical services (3.7 per cent), construction (3.6 per cent), computer design, security, information technology services and AI (3.6 per cent), IT consulting services (3.5 per cent), energy, mining and metals (3.5 per cent) and foundations, community assistance and health care (3.5 per cent).

“While economic pressures and the competition for talent remain challenging, we’re beginning to see a gradual return to pre-pandemic market norms as salary increase budgets reduce for a second year in a row,” Darcy Clark - senior principal in compensation at Normandin Beaudry - said in a press release.

“Although average salary increase projections remain above three per cent, organizations are considering affordability when defining their long-term plans. Several significant salary increase cycles may not be sustainable and organizations remain cautious about increasing recurring payroll costs as they plan for the future.”

Source: Benefits Canada

(Quotes via original reporting)

A new survey has revealed that Canadian employers’ 2025 salary budgets are increasing by an average of 3.4 per cent, down slightly from 3.6 per cent in 2024, Benefits Canada reports.

The research -  by Normandin Beaudry - polled more than 700 employers. It found more than two-fifths (44 per cent) plan on granting an average additional budget of one per cent for the 2025 compensation cycle, unchanged from 2025. 

The budgets will be used to apply market-driven adjustments (65 per cent), retain employees in critical roles (51 per cent) and differentiate compensation for top performers (49 per cent), among other purposes.

Employers in the high technology sector are reportedly planning the highest average budget increase (4.3 per cent), followed by telecommunications and data processing/warehousing (3.9 per cent), professional, scientific and technical services (3.7 per cent), construction (3.6 per cent), computer design, security, information technology services and AI (3.6 per cent), IT consulting services (3.5 per cent), energy, mining and metals (3.5 per cent) and foundations, community assistance and health care (3.5 per cent).

“While economic pressures and the competition for talent remain challenging, we’re beginning to see a gradual return to pre-pandemic market norms as salary increase budgets reduce for a second year in a row,” Darcy Clark - senior principal in compensation at Normandin Beaudry - said in a press release.

“Although average salary increase projections remain above three per cent, organizations are considering affordability when defining their long-term plans. Several significant salary increase cycles may not be sustainable and organizations remain cautious about increasing recurring payroll costs as they plan for the future.”

Source: Benefits Canada

(Quotes via original reporting)