Canadian employers are projecting 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, according to a new report from Telus Health.
The report, based on data from more than 375 Canadian organizations across various industries, found by province, Manitoba employers projected the largest average increase in base salaries (3.43 per cent), followed by New Brunswick (3.25 per cent) and Quebec (3.21 per cent). It noted 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.
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Across various industries, employers in the high technology (3.64 per cent), oil and gas (3.58 per cent) and life sciences (3.39 per cent) sectors estimated the largest average increases. The information technology sector 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.
While base salary remains a vital tool to attract and retain talent, the report also noted additional compensation elements must be considered in order to offer a holistic well-being 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 at Telus Health, in a press release.
“Employers that pair fair base pay with a holistic well-being 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.”