[Canada] 2026 pay rises stay close to summer budget expectations

New research has revealed that average salary increase budgets for 2026 in Canada will likely remain consistent with projections made in summer 2025, Wealth Professional reports.

The latest Normandin Beaudry Salary Increase Pulse Survey of nearly 400 Canadian employers found that the national average salary increase budget for 2026 is projected at 3.0 per cent, excluding salary freezes, showing a slim 0.1 percentage point drop from previous summer assumptions.

The modest downward adjustment reportedly stems from organisations across industries fine-tuning compensation plans in response to ongoing economic and trade uncertainties. Salary growth forecasts remain above long-term historical norms.

The survey showed that a significant majority of employers (just under three-quarters) don’t plan to change their initial salary budget projections from the summer. Of the minority that are changing their forecasts, more than half say they will reduce planned increases, while remaining respondents expect to raise them.

Forty-two per cent of respondents have reportedly allocated extra funding (averaging around 0.8% of payroll) on top of base salary budgets, to support compensation challenges such as retention and targeted pay moves.

Source: Wealth Professional

New research has revealed that average salary increase budgets for 2026 in Canada will likely remain consistent with projections made in summer 2025, Wealth Professional reports.

The latest Normandin Beaudry Salary Increase Pulse Survey of nearly 400 Canadian employers found that the national average salary increase budget for 2026 is projected at 3.0 per cent, excluding salary freezes, showing a slim 0.1 percentage point drop from previous summer assumptions.

The modest downward adjustment reportedly stems from organisations across industries fine-tuning compensation plans in response to ongoing economic and trade uncertainties. Salary growth forecasts remain above long-term historical norms.

The survey showed that a significant majority of employers (just under three-quarters) don’t plan to change their initial salary budget projections from the summer. Of the minority that are changing their forecasts, more than half say they will reduce planned increases, while remaining respondents expect to raise them.

Forty-two per cent of respondents have reportedly allocated extra funding (averaging around 0.8% of payroll) on top of base salary budgets, to support compensation challenges such as retention and targeted pay moves.

Source: Wealth Professional