December 2025
SALARY INCREASES FOR 2026: IS YOUR BUDGET ALIGNED WITH INITIAL PROJECTIONS?
In September 2025, Normandin Beaudry released the results of its 2026 Salary Increase Survey. More than 1,000 organizations from across Canada participated in this 15th edition.
As companies continue to finalize their strategies moving into the new year, determining 2026 salary increase budgets remains a top priority. In response, Normandin Beaudry launches an updated pulse survey to re-evaluate 2026 market projections.
In just two weeks, more than 250 Canadian organizations participated in our pulse survey to report how their salary budget planning for 2026 has changed since last summer.
Preliminary results signal that average salary increase budgets (excluding freezes) in Canada are 3.0%, which is slightly lower than initial summer forecasts of 3.1%. Total budgets, including the additional budget, are 3.3%, which is also slightly lower than initial forecasts of 3.4%.
Overall, 26% of respondents have revised their initial salary increase budgets for the coming year, with 67% of these respondents decreasing their original budgets and 33% reporting an expected increase from their original forecasts.
For organizations reporting a decrease of their initial 2026 budget forecasts, the most common reasons included:*
- Economic uncertainty; and
- Less constrained labour market.
* Organizations could select multiple answers.
Participate now to ensure you receive a complimentary copy of the full survey results in the new year.
The Salary Increase Pulse Survey remains open for participation until December 17. Click the link to participate today to receive the full results in January, including exclusive insights on:
- Market indicators
- HR strategic priorities for 2026
As Canada faces an economic slowdown compounded by ongoing tariff pressures and trade uncertainties, strategic planning relevant to salary increases is essential in retaining talent and maintaining workforce strength.
Organizations are expected to continue scaling back their salary increase budgets in 2026, with an average projected increase of 3.1%, excluding salary freezes, versus 3.2% in 2025.
More detailed information is available in the final report
If you have any questions, email us at participant@normandin-beaudry.ca.
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