- Average increases of 3.1% projected for 2027.
- 46% of organizations plan to secure additional budgets to address compensation challenges.
- Employers are securing increases to apply market-driven adjustments, differentiate compensation for top performers, and retain employees in critical roles.
TORONTO, Sept. 1, 2026 /CNW/ -- Normandin Beaudry, a leader in actuarial and total rewards consulting services, released the findings of its 16th annual Salary Increase Survey with more than 800 Canadian organizations participating in this 2027 edition. Results indicate that Canadian organizations are maintaining a consistent salary increase budget from previous years, with an average increase of 3.1% expected in 2027 (excluding salary freezes). This number aligns with actual budgets in the past year.
"After continued reductions in salary budgets in recent compensation cycles, salary increases have been trending back toward pre-pandemic levels since 2025", said Darcy Clark, Senior Principal, Compensation, Talent and Culture, at Normandin Beaudry. "The 2027 projections indicate alignment with 2026 budgets despite economic, trade and geo-political uncertainties,"
HIGHLIGHTS
Additional salary budgets are still in play to support compensation issues
While salary increase budgets stabilize, organizations continue to carve out additional funds to address any pressures that may arise to due to market conditions. In 2026, approximately 46% of responding organizations allocated an additional 0.9%, on average, beyond their general salary increase budget. Normandin Beaudry's 2027 survey results indicate that this trend holds steady, as 46% of Canadian organizations plan on granting the same average additional budget of 0.9% for the upcoming year's compensation cycle. Among other purposes, these budgets will be used to apply market-driven adjustments, differentiate compensation for top performers, and retain employees in critical roles.
Industry sectors reporting high increases
For 2027, the following sectors reported higher-than-average salary budget increase expectations:
- Telecommunications, data processing, data warehousing and related services: 3.4%
- Finance and insurance: 3.4%
- Real estate, rental and leasing: 3.3%
- Technology: 3.3%
- Construction: 3.3%
- Professional, scientific and technological services: 3.2%
Projections indicate that despite Canada experiencing what economists call a 'technical recession', organizations are planning consistent salary increase budgets as reported in 2026.
The full report and interactive tool, with details by province, industry sector, size and type of organization, are available on the Normandin Beaudry website.
Read our one pager In the spotlight to learn what Canadian organizations had to say about AI adoption, future skills, evolving compensation practices and the strategic role of HR in this transformation.
About Normandin Beaudry
Canadian excellence in total rewards
Founded in 1992, Normandin Beaudry is recognized for its leading-edge total rewards consulting services. Independent and wholly owned by an ever-growing number of its professionals, Normandin Beaudry has an ownership structure that puts it in a unique position as one of the few major firms in the field with exclusively Canadian interests, while also standing out through its B Corp certification. From offices in Montreal, Toronto and Quebec City, a team of nearly 400 employees serves an enviable list of clients across Canada that includes organizations of all sizes and industries from the private, public, para-public and not-for-profit sectors.
Excellence spans the globe! As an independent and equal shareholder in MBWL International since 2023, Normandin Beaudry's reach now extends to 50+ countries.
About our Compensation, Talent and Culture Expertise
Normandin Beaudry's team of over 60 Compensation, Talent and Culture consultants is one of the largest in Canada. Through the sound and innovative use of data and technology, our versatile and creative experts provide clients with unique and simple solutions that address their strategic and operational needs. For more details, visit https://www.normandin-beaudry.ca/en/areas-of-expertise/compensation/
SOURCE Normandin Beaudry
Media contact: Zenergy Communications, [email protected]
Share this article