As we enter Q4, many employers are starting to plan their salary increase budgets for 2026. Below is a summary of salary increase projections for 2026 that have been recently released:
- Actual average salary increase in 2025 (in Canada) – 3.2%
- Projected salary increase for 2026 (in Canada) – 3.1%
- Projected salary increase for 2026 (in BC) – 3.1%
- Actual average salary increase in 2025 (in Canada) – 3.35%
- Projected salary increase for 2026 (in Canada) – 3.11%
- Projected salary increase for 2026 (in BC) – 3.09%
- Actual average salary increase in 2025 (in Canada) – 3.3%
- Projected merit increases for 2026 (in Canada) – 2.9%
- Projected total salary increase budget for 2026 (in Canada) – 3.2% (includes merit increases plus other base salary increases such as promotional pay increases and cost of living adjustments)
- Projected salary increase for 2026 (in Canada) – 3.1%
Western Compensation & Benefits Consulting
- Actual average salary increase in 2025 (in Canada) – 3.5% (for non-union employees)
- Projected salary increase for 2026 (in Canada) – 3.5% (for non-union employees)
- Actual median salary increase budget in 2025 (in Canada) – 3.5%
- Projected median salary increase budget in 2025 (in Canada) – 3.5%
- Actual average salary increase in 2025 (in Canada) – 3.4%
- Projected salary increase for 2026 (in Canada) – 3.2%
Please note: Salary increase projections above, on the most part, exclude companies planning for a salary freeze in 2026.
Salary increase projections for 2026 in Canada are projected to be hovering around 3.2%. Similar to last year, salary increase projections for 2026 are lower than the actual salary increases provided in 2025. For specific salary increase projections by province and by industry, please look at the specific survey links for more information.
Feel free to reach out to us if you have any salary planning questions for your small business in BC.
Posted by Clear HR Consulting Inc. on October 21, 2025.
