As organizations plan for 2026, salary budgets and compensation strategies remain a critical focus for HR leaders and finance teams. Recent survey data from leading consulting firms provides valuable benchmarking insights into expected salary trends across Canada, helping organizations make informed decisions about their total rewards programs. 

A More Moderate Outlook 

The data points to a period of moderation in salary increases. These projections largely reflect base salary increase budgets, excluding promotions and market adjustments. Surveys from Normandin Beaudry, Mercer, TELUS Health, and Eckler all project Canadian salary increases in the 3–3.3% range for 2026. This represents a pullback from the higher increases seen in recent years, as organizations adopt a more measured approach to compensation planning in response to economic uncertainty. 

Regional and Sectoral Differences Matter 

While the overall trend suggests moderation, it's important to recognize that these are national averages. Significant variation exists across regions and industries, driven by local labour market conditions, talent availability, and sector-specific dynamics. Organizations should consider industry-specific benchmarks and regional market data when developing their compensation strategies. 

Survey Comparison 

The following summary highlights how major Canadian salary surveys compare for 2026: 

Survey	Projected 2026 Increase
Normandin Beaudry	3.0%
TELUS Health	3.11%
Mercer	3%
Eckler	3.3%

Note: Mercer’s results are reported including zeros (i.e., organizations planning a 0% merit increase budget / merit freeze), while the other sources are reported excluding zeros.  

The consistency across surveys provides a reliable foundation for salary planning and budgeting decisions. 

Key Considerations for 2026 

Canadian salary growth for 2026 is expected to be moderate but stable. While increases won't match the peaks of recent years, this stability offers organizations an opportunity to refine their total rewards strategies with greater predictability. Staying informed about these trends remains essential for effective talent management and competitive positioning in the market. 

Questions to Consider for Your Organization 

As you finalize your 2026 compensation strategy, consider: 

• How does your planned salary increase compare to these market benchmarks? 

• Are there specific roles, departments, or locations where market pressures might require adjustments above the average? 

• Beyond base salary, what elements of your total rewards package can help you remain competitive? 

• How will you communicate salary decisions to employees in a year of more modest increases? 

Share your thoughts in the comments below - we'd love to hear how you're approaching 2026 salary planning. 

Don't forget to join us on March 5th for a discussion on this topic -- Salary Budget Planning: How Organizations Decide Where Salary Dollars Go. Register here.