Raises averaging 3%
Across Canada, average salary increases for 2026 are tracking around 3%—a baseline employers will use when sizing raises this year. Managers who gave tiny hikes (1–2%) have recently lost top engineers to outside offers, highlighting why sub-inflation bumps can trigger talent flight. (swecvisaconsultant.com) (ndtv.com)
Normandin Beaudry’s Salary Increase Pulse — fielded to nearly 400 Canadian employers in Q4 2025 — shows employers are allocating supplemental budget lines (an average 0.8% of payroll) to deal with pay pressure even as many stay conservative on base budgets. (normandin-beaudry.ca) Mercer’s October QuickPulse® (462 Canadian companies) distinguishes planned merit increases (3.0%) from total increase budgets (3.3%), signalling employers expect promotion and one‑off adjustments to lift total spend above base merit levels. (mercer.com) Mercer’s sector split shows chemicals and high‑tech projecting notably higher total increase budgets — about 4.0% and 3.8% respectively — while consumer goods and non‑manufacturing expect below‑average increases. (mercer.com) Province‑level forecasts in Normandin Beaudry’s release put Quebec at the top (around 3.5%) with Ontario and Alberta near 3.3% and B.C. at roughly 3.2%, highlighting geographically uneven pay pressure. (dailyhive.com) Normandin also reports an uptick in planned salary freezes — 5.3% of respondents expect freezes for 2026 versus 2.3% who reported freezes in 2025 — a factor that reduces the national effective increase when included. (normandin-beaudry.ca) A viral Reddit thread amplified the human cost: the post claimed a company‑wide 1.5% hike cap prompted its “best engineer” to quit, with the poster saying a 3% raise (about $2,000 in that case) would have retained the hire, a story reported by NDTV and other outlets. (ndtv.com) Coverage of the Reddit post notes broad online sympathy for the departing engineer and quotes the manager describing a “massive hole” left by the exit, underlining how rigid across‑the‑board increase policies can backfire on teams with scarce technical talent. (moneycontrol.com)
