Canadian employers are planning to keep 2027 compensation budgets steady and are taking a measured approach that balances the current economic uncertainty with talent priorities, says Elizabeth English, senior talent and careers leader at Mercer Canada.

“Global economic uncertainty is definitely shaping compensation decisions and there is variation by industry. Employers are balancing the need to stay competitive with potential realities of slower growth, increased cost pressures and tariff-related impacts on their business expenses.

“This year, we’re seeing that organizations are generally holding their salary increase projections steady with the past two years and we think this is really a reflection of the persistent economic, geopolitical and cross-border trade uncertainties.”

Read: Canadian employers’ salary budgets expected to increase by 3.1% in 2027: survey

A new survey by Mercer, which polled nearly 500 Canadian organizations, found, on average, employers plan to hold 2027 base salary increases for merit at three per........

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