SURVEY: Market uncertainty and international tariffs prompt organizations to take more cautious approach to salary planning
TELUS Health's 43rd annual Salary Projection Survey shows wage growth slowing but still expected to outpace inflation for the second consecutive year
VANCOUVER, BC, Sept. 18, 2025 /CNW/ - Amid growing market uncertainty and concerns over international tariffs, Canadian organizations are keeping a watchful eye on risks as they relate to salary planning, according to TELUS Health's 43rd annual Salary Projection Survey released today. The report forecasts a 3.11 per cent increase in average base salaries for non-unionized workers in Canada for 2026—reflecting a continued slowdown in wage growth since 2023. Despite this more measured approach, salary increases are still expected to exceed Canada's current inflation rate of 1.9 per cent as reported by Statistics Canada earlier this week, for the second consecutive year, ensuring employees maintain gains in overall purchasing power.
"Three years running, we're seeing salary projection declines—a clear signal that economic uncertainty and stabilizing inflation are fundamentally reshaping how Canadian organizations approach compensation strategy," explains Guylaine Béliveau, National Practice Leader - Compensation Consulting, TELUS Health. "While still outpacing the national inflation rate, our results show a normalization of salary budgets tempered by caution, as organizations balance this uncertainty, including pressures from trade tariffs, with day-to-day operational needs."
Key findings from the study, based on data from more than 375 Canadian organizations across various industries, include:
- Slight regional variations in provincial salary projections for 2026:
- Manitoba leads with a projected 3.43 per cent increase in average base salaries, followed by New Brunswick at 3.25 per cent and Quebec at 3.21 per cent
- New Brunswick is the only province to register growth in the rate of salary increases for 2026, with a jump of 0.37 points over 2025. All other provinces went down.
- In Saskatchewan, average base salaries will increase by only 2.95 per cent in 2026, ranking it last among provinces with statistically significant results for this year, and registering the largest drop among all provinces since 2025.
- Sector-specific projections that reflect pressures from ongoing market uncertainty:
- The highest projected increases for 2026 are expected in High Technology (3.64 per cent), Oil & Gas (3.58 per cent) and Life Sciences (3.39 per cent), excluding salary freezes. These three industries were also strong performers in 2025.
- For 2026, the lowest salary increases are expected in Business Services (2.60 per cent).
- Information Technology is expected to see the largest increase in the rate of salary growth in 2026, jumping 0.51 points to 3.25 per cent in 2026, while Real Estate will suffer a significant drop, losing 1.03 points from last year to total 3.25 per cent in 2026.
The study also highlights that employee engagement, building critical skills and competencies for leaders, and reinforcing the leadership bench remain among top priorities for organizations.
Investment in Innovation through expanded use of AI
While the rate at which salary budgets increase is slowing down, organizations are investing in innovation to increase productivity, which includes increasing the use of artificial intelligence. Overall, the number of organizations exploring the use of AI has increased from 74 per cent last year to 77 per cent in 2026.
- When asked to list their human capital priorities, 31 per cent of respondents included leveraging AI strategies, up from 18 per cent since 2025.
- How AI is potentially being used in the workplace is also shifting. Rather than focusing on AI implementation in select departments, organizations report that enterprise-wide AI consideration has increased to over 31 per cent compared to 23 per cent last year.
This finding underscores the growing importance of AI in shaping workplace productivity and innovation across Canada's business landscape.
The need for a holistic approach to employee wellbeing
While base salary remains a vital tool to attract and retain talent, additional compensation elements must be considered in order to offer a holistic wellbeing package so employees see tangible value beyond base pay.
"While there is clear volatility across many sectors, this report underlines the opportunities for employers to strategically differentiate themselves through competitive, equitable, and wellbeing-aligned compensation practices," says Joseph De Dominicis, National Consulting Leader, TELUS Health. "Employers that pair fair base pay with a holistic wellbeing package—flexible health coverage, mental–health support, financial coaching, flexible work arrangements and scheduling options — will outperform in both recruitment and retention because they're supporting the whole person through uncertainty across every sector. This holistic approach matters because employees increasingly prioritize connection, purpose, and belonging alongside traditional benefits."
By understanding the dynamic needs of employees, organizations can create the right strategies and develop the right supports to help them and the company be healthy and productive – now, and in the future.
About the TELUS Health Salary Projection Survey
The 43rd edition of the TELUS Health Salary Projection Survey, based on data gathered between June and August, 2025, is a trusted resource that offers comprehensive insights to HR and compensation leaders across Canada. This year's report covers actual salary budget increases in 2025, projections for 2026, and details on how respondents are navigating these challenges. Leaders have consistently relied on this survey for a trusted, nuanced and actionable perspective on compensation trends, helping organizations plan not just for the year ahead, but for sustainable workforce success and long-term wellbeing. Employers across Canada from various industries and regions voluntarily participated.
Beyond national perspectives, the current report also includes industry breakdowns and region-by-region analyses across Canada. To consult the summary report and learn more about TELUS Health's Compensation Consulting practice, visit: LINK
About TELUS Health
TELUS Health is on a mission to become the most trusted wellbeing company in the world by enhancing the overall efficiency of healthcare and championing workplace wellbeing. By integrating advanced healthcare technology with comprehensive employee support services, TELUS Health provides a holistic approach to primary and preventive health and wellbeing enhancing 157 million lives across more than 200 countries and territories. Our innovative digital health platforms, including electronic medical records (EMRs) and virtual care solutions, empower healthcare professionals, employers and governments to deliver personalized care efficiently. Our employee wellbeing programs empower individuals by offering extensive support through Employee and Family Assistance Programs (EFAPs), mental health resources, financial counselling and workplace wellness initiatives. At TELUS Health, we are committed to revolutionizing healthcare to ensure people receive the support they need and employees thrive both personally and professionally. Together, let's make the future friendly. For more information please visit: www.telushealth.com.
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TELUS Health
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SOURCE TELUS Health
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