emerge. The survey remains open to further enrich this analysis.
As Canada has entered a “technical recession” following two consecutive quarters of economic contraction, strategic planning around salary increases is essential to retain talent and maintain workforce strength.
In just three weeks, more than 350 organizations participated in Normandin Beaudry’s 2027 Salary Increase Survey. Preliminary results point to a minor upward tick, with actual Canadian salary increase budgets in 2026 reported to average at 3.1%—just above the initial projection of 3.0%. Current projections for 2027 remain consistent with the actual increases granted in 2026, with an average salary increase of 3.1%, excluding salary freezes.
Despite Canada’s technical recession confirmed in June 2026, salary increase projections remain on par with salary increases provided in 2026. Preliminary results indicate that organizations are taking a wait-and-see approach, as budgets are firming up for fall and winter 2027.
In 2027, more than half of participating Canadian organizations plan to allocate an average additional budget of 0.9%. This is slightly lower than 2026, where the same number of responding organizations granted an additional budget averaging 1.1%. These supplemental budgets are intended to provide organizations with flexibility to respond to evolving compensation needs throughout the year, including:
- Market salary adjustments
- Differentiated rewards for high performers
- Employee retention in strategic and critical roles
- Accelerated progression of employees in the lower end of their pay range
There’s still time to participate in the survey. The deadline has been extended to July 17.
Complete the survey by July 17 to receive complimentary access to the detailed results in September, including exclusive insights on pay comprehension, as well as on AI skills and adoption in the workplace.