Compensation Planning Outlook 2026: Pulse Check
This research examines projected salary increases and short-term incentive pay for 2026, based on a fall 2025 survey of 248 Canadian organizations. We compared the results of this survey with one conducted in the summer of 2025 to examine changes in projections.
What are the projections for the average pay increase for non-unionized employees in 2026? How many organizations revised their salary projections between the summer and fall of 2025 and what were the main reasons for these revisions? Have organizations adjusted their 2026 targets for short-term incentive pay?
Read the data briefing to get our full analysis.
Key findings
Mid-year check-in: Understanding the Pulse Check report
Labour market tightens, but wages aren’t budging
Overall, projections of salary increases are stable
Few organizations are revising their salary projections
More organizations are adjusting salaries downward
Market adjustments, rising costs influenced adjustments
Salary freezes unlikely in 2026
Most organizations maintaining short-term incentive targets
Final thoughts
Appendix A: Methodology
Appendix B: Glossary
Appendix C: Respondent profile
Appendix E: Bibliography
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