Canadian employers keep 2026 salary increases steady and shift to performance-based raises
Updated
Updated · Wealth Professional · May 4
Canadian employers keep 2026 salary increases steady and shift to performance-based raises
12 articles · Updated · Wealth Professional · May 4
Mercer’s March survey of 271 employers found average merit rises of 3.0% and overall pay adjustments of 3.3%, broadly matching October 2025 projections.
Only 4% gave equal raises to all staff, as most firms tied pay more closely to individual results, market rates and internal equity to retain top talent.
Life Sciences and Retail led increases, while over half of respondents plan to adjust salary structures this year, with average pay-band changes of 2.7%.
Are Canadian companies ditching uniform raises, or is a different compensation story unfolding behind the headlines?
Do performance-based raises truly reward talent, or just help companies control costs amid rising inflation?