Salaries Projected To Increase In 2025

 In Salaries & Incentives, Salary Surveys

Canadian Employers Planning 2025 Salary Increases Of 3.5%

As employers plan for 2025, having access to planned salary increases for different non-union position levels, sectors and industries is essential for financial and human resources planning. Western Compensation & Benefits Consultants (“WCBC”) recently surveyed 736 employers across Canada regarding their planned salary increases for 2025.

The survey results provide valuable insights into increases in different geographic regions, sectors of the economy and various industries.

INCREASES ACROSS CANADA BY POSITION LEVEL

The planned increases across Canada are approximately 3.7% on average, with a typical (i.e.: median) increase of 3.5%. The Province of Quebec and the Territories are outliers, with median increases of approximately 3.8%.

 

Virtually all of the employers expect to increase their salaries in 2025. However, approximately 2% plan to not award salary increases to executive positions.

INCREASES BY SECTOR OF ECONOMY

Private sector employers are planning slightly higher increases (average of 3.7% and median of 3.5%), reflecting competitive pressures to attract and retain talent, especially in high demand industries. Not-for-profit employers are planning increases similar to those in the private sector (average of 3.6% and median of 3.5%), whereas public sector employers are planning the lowest increases (average of 3.1% and median of 3.0%).

INCREASES BY SELECTED INDUSTRIES

The magnitude of salary increases varies by industry, reflecting such things as labour market demands, economic conditions in the industry and employers’ ability-to-pay. Technology companies and employers providing professional, scientific and technical services are planning the largest salary increases for non-union employees (average and median of approximately 4.0%), closely followed by companies in the mining, quarrying and oil and gas industry (average of 3.7% and median of 4.0%). Employers in educational services are planning for relatively lower 2025 salary increases (overall average and median of less than 3.0%).

CONCLUSION 

Employers which follow good compensation governance practices periodically conduct market compensation reviews whereby their compensation levels are compared to the compensation paid to comparable positions by relevant comparison organizations. In the years between these market comparison reviews it is necessary for employers to access robust salary increase information in order to track the market and align their salaries accordingly.

WCBC’s survey results report 2025 salary increases which are typically about 3.5%. However, the variance by geographic location, position levels, sector of the economy and industry emphasize the importance of a tailored approach to compensation planning and decision making.

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Participants have been sent their free access already. If you participated and did not receive access, please contact our office: wcbc@wcbc.ca  |  604-683-9155  |  Contact Us 

Reports are offered exclusively for the internal use of individual employers. Purchase is not available to libraries, career placement centres, HR consulting firms, or any other entity that could re-sell the data or make it available to the general public. WCBC reserves the right to accept or decline purchase requests.

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