Are you not happy with your raise this year? Canadians can expect a raise next year, and experts have predicted which industries and provinces will have the highest pay raises.
Eckler, an actuarial consulting firm, released its third annual compensation planning survey, and it looks like Canadian workers can expect to see a bump in their paychecks — albeit a modest one.
In 2024, the average national average increase was 3.8%, but in 2025, the national average base salary increase is projected at 3.6%.
Marc Bruxelle/Shutterstock
The survey was based on responses from over 500 Canadian organizations from June to August 2024. Overall, 58% of participating organizations said they had already decided on next year’s salary budget, compared to 18% that remain undecided.
“As the labour market continues to rebalance, organizations are shifting their attention towards effectively managing their compensation programs,” said Anand Parsan, national compensation practice leader at Eckler. “How they communicate their total rewards package to employees, how transparent they are with compensation, how effective and equitable are their pay programs.”
Salary increases will vary by industry.
adriaticfoto/Shutterstock
Now’s the best time to work in real estate because the survey suggests that the industry is expected to see a 4.2% salary increase next year, well above the expected national average.
But it’s a different story for people who work in healthcare and education.
Only a 2.8% increase is expected in healthcare, while those working in education will likely see a 2.9% pay rise. And that’s even if organizations plan to increase wages; according to the survey, 44% of healthcare organizations and 21% of education organizations expect to freeze compensation in 2025.
On average, Canadians in most provinces can expect an increase between 3.3% and 3.5%, but the extra money you’ll see in your bank account next year also depends on where you live.
EJ Nickerson/Shutterstock
Employees in Alberta and BC are expected to have the highest average salary increases between 3.6% and 3.9%, with BC anticipated to have the highest pay rise.
Yukon and Prince Edward Island will likely see the lowest, with a projected average increase of 3.1% to 3.2%.
“As inflationary pressures dissipate, planned salary increases are moderating more slowly, resulting in larger real compensation increases for employees,” stated Parsan. “We are beginning to see a reversion to pre-pandemic norms.”