Salaries projected to rise by 3.5% across Canada in 2025, new survey finds

Canadian employees can expect an increase in their salaries by 2025, according to a recent survey by Western Compensation & Benefits Consultants (WCBC).

Employers nationwide plan to raise wages by an average of 3.7%, with the typical (or median) increase hovering around 3.5%.

Only 2% of employers surveyed indicated that they do not plan to provide salary increases, specifically for executive positions.

The findings, based on a survey of 736 employers across Canada, offer a breakdown of salary projections by geographic region, sector, and industry, highlighting compensation trends as organizations prepare for the year ahead.

Employers in Quebec and the territories are projected to offer some of the highest pay raises, with median increases of around 3.8%.

Sector-specific pay adjustments

Private-sector employers are expected to offer slightly higher raises, with an average of 3.7% and a median of 3.5%, “reflecting competitive pressures to attract and retain talent, especially in high demand industries,” said WCBC.

Not-for-profit organizations are planning increases that closely mirror those in the private sector ((average of 3.6% and median of 3.5%).

In contrast, public sector employers are anticipating more conservative raises, with an average of 3.1% and a median of 3.0%.

Industry-specific salary projections

Technology firms, as well as those in professional, scientific, and technical services, are planning some of the largest salary bumps for non-union employees, said WCBC. These sectors, with both an average and median increase of approximately 4%, continue to lead the way in compensation, driven by strong demand for highly specialized skills.

Similarly, companies in the mining, quarrying, and oil and gas sectors are forecasting significant wage increases, with an average of 3.7% and a median of 4%.

On the other hand, the educational services industry is expecting more modest salary growth, with both the average and median projected below 3.0%.

Other salary surveys for 2025

The national average base salary increase for 2025 is projected at 3.6%, excluding planned salary freezes, reports Eckler. That marks a drop from projected increases of 4.2% for 2022 and 3.8% for 2023. The company’s projected increase for 2021 was 3.1%.

Canadian employers are expected to lower their overall salary increase budgets in 2025, according to a survey by Normandin Beaudry, which gathered data from more than 750 organizations across the country, and revealed that average salary increases are projected to be 3.4 per cent, down slightly from 2024’s 3.6 per cent.

Canadian organizations are adjusting to current job market and economic conditions by adopting new strategies for salary planning, according to a Gallagher survey, which found p for 2025 show a further decline, with expected increases of 3.5%.