Canada’s Salary Outlook for 2026: Findings from WCBC
Each year, Western Compensation & Benefits Consultants (“WCBC”) surveys Canadian employers to understand how organizations are making salary decisions and what employees can expect in the year ahead. With cost pressures, market competitiveness, and evolving workplace dynamics all at play, this year’s results offer timely insights. This year’s survey reflects input from 917 organizations across Canada, making it one of the most comprehensive snapshots of current and projected salary increases.
Base Salary Increases: 2025 Results and 2026 Outlook
In 2025, Canadian employers raised base salaries by an average of 3.5% for non-union employees and 3.0% for unionized groups, while salary ranges increased by about 2.6%.
The outlook for 2026 is strikingly similar. Employers again project 3.5% increases for non-union staff, while unionized employees are expected to see slightly smaller gains of 2.7%. Salary ranges are expected to rise by 2.5%, just below last year’s pace. Fewer than 2% of employers plan pay freezes, with the vast majority increasing compensation. Higher increases are anticipated in industries such as technology, healthcare, and finance, and in regions like Ontario and Quebec.
Salary Increases by Employee Group
The groups receiving the largest increases shifted slightly between 2025 and 2026. Last year, employers most often singled out technical and skilled employees, followed closely by high-demand roles like engineers, healthcare professionals, and IT specialists. Mid-level managers and even entry-level employees also saw extra attention, reflecting hiring pressures in a tight labour market.
For 2026, technical and skilled employees remain a focus, but fewer employers are highlighting them. Instead, senior leadership pay is edging upward as a priority, while entry-level positions are less likely to see above-average adjustments.
Perhaps most notably, the largest proportion of organizations in both years reported that no one group is expected to receive higher increases than others. More employers are also uncertain about where to concentrate increases in 2026, pointing to a cautious and balanced approach across the workforce.
What’s Driving Salary Decisions
The factors behind salary decisions are shifting. Market competitiveness remains the leading influence, but it carries less weight than in 2025. Company performance and inflation/cost-of-living pressures are playing a bigger role, while employee retention has declined as a top driver.
This suggests employers are striking a careful balance: keeping pay competitive and responsive to economic conditions, while also making sure increases align with organizational performance and financial sustainability.
Beyond Pay: Other Rewards
Salary increases are only part of the picture. Many employers are combining base pay increases with a wider mix of rewards. Flexible and remote work options remain common, offered by nearly three-quarters of organizations. Enhanced group benefits are also widespread, alongside investments in career development and training allowances to help employees build skills and advance.
These offerings highlight that engagement and retention depend on more than salaries alone: they also hinge on benefits, flexibility, and opportunities that support long-term wellbeing and career growth.
Key Takeaways for Employers
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- Salary planning remains essential: Most organizations are budgeting for increases in 2026, similar to 2025, making it important to stay aligned with market norms.
- Variation is widening: Certain sectors (technology, healthcare, finance) and regions (Ontario and Quebec) are forecasting higher adjustments, so employers need to weigh both national averages and their competitive landscape.
- Compensation is more than salaries: With many organizations enhancing their benefits, flexible work options, and development opportunities, a holistic approach to rewards is key to attracting and retaining talent.
WCBC’s Annual Compensation Reports
WCBC’s Salary Increase Report is available for purchase. Our report breaks down increases by employee level, location, economic sector and selected industries. Get the full picture and stay competitive.
WCBC also has a full suite of compensation & benefits reports to assist organizations with benchmarking their compensation packages.
- Looking for salary data?
- Need to benchmark your group insurance and/or retirement programs?
- Looking to benchmark Executive or Board of Directors Compensation?
Learn more and order your reports today!
Have questions? Please don’t hesitate to contact us!
Megan Lizee
Office Manager
Phone: (604) 683-9155
Email: megan_lizee@wcbc.ca
