Canadian employers are maintaining consistent salary budgets with an average increase of 3.1 per cent expected in 2027 (excluding salary freezes), aligning with actual budgets in the past year, according to a new survey by Normandin Beaudry.

The survey, which polled more than 800 Canadian organizations, found 46 per cent said they plan on granting an average additional budget of 0.9 per cent for the upcoming year’s compensation cycle, which was the same amount for 2026. The reasons employers cited for these supplementary budgets were to support market adjustments to salaries, differentiate compensation for high performers, retain employees in critical roles and accelerate progression for employees lowering their pay bands.

“The 2027 projections indicate alignment with 2026 budgets despite economic, trade and geopolitical uncertainties,” said Darcy Clark, senior principal of compensation, talent and culture at Normandin Beaudry, during a recent webinar hosted by the organization. “Although labour markets have become less constrained, strategic........

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