Average salary increases projected at three per cent for 2026, report says
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TORONTO – A new report says businesses are projecting salary increases of three per cent this year, excluding salary freezes.
The forecast was based on consulting firm Normandin Beaudry’s salary increase pulse survey of nearly 400 Canadian organizations in the fourth quarter of last year.
It compared with earlier expectations for 3.1 per cent for non-unionized employees based on survey results from the summer.
Darcy Clark, senior principal, compensation, at Normandin Beaudry says as economic and trade uncertainty continues to shape Canada’s market, organizations are taking a cautious, gradual approach to salary increase budgets.
The report noted that nearly three-quarters of organizations are not planning any changes to their initial salary increase budget projections from last summer.
Sixteen per cent of participating organizations are making reductions, while 10 per cent are intending to increase their initial budget.
This report by The Canadian Press was first published Jan. 21, 2026.