Canadian employees receive 3.3% average pay increases in March 2026
Updated
Updated · Benefits Canada · May 8
Canadian employees receive 3.3% average pay increases in March 2026
8 articles · Updated · Benefits Canada · May 8
Mercer’s survey of more than 270 employers found mean merit rises were 3%, while executive increases trailed non-executive awards at 2.7% versus 3.3% total.
Only 4% of employers gave equal across-the-board increases, with most tying pay to individual performance, market position and internal equity to target compensation budgets more selectively.
More than half plan 2026 salary-structure adjustments averaging 2.7%, while life sciences and retail led increases and banking offset lower merit rises with higher total base-pay adjustments.
Beyond a 3% raise, what non-cash benefits are key to retaining Canadian talent this year?
How do new pay transparency laws affect rewarding top performers without creating internal conflict?
Does tying pay strictly to performance risk damaging the collaborative culture essential for business?