The mean merit pay increase delivered to Canadian employees in March 2026 was three per cent, with average total increases (measuring all types of pay increases, including zeros) reaching 3.3 per cent, according to a new survey by Mercer.

The survey, which polled more than 270 Canadian employers, found the results aligned with projections made in October 2025, signalling a consistent approach to compensation planning. Only four per cent of respondents reported providing equal, across-the-board salary increases, referred to as the “peanut butter approach.”

Performance was still a key driver, with 88 per cent of employers saying........

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