Results are in! Eckler’s 2026 Compensation eplanning survey

We are pleased to share the results from the fourth edition of Eckler’s Compensation eplanning survey. The survey, conducted from July to August 2025, collected responses from 504 organizations.

Canadian organizations are anticipating slightly lower base salary increases for 2026, with regional variations expected to remain minimal. Employers are placing heightened emphasis on compensation benchmarking, employee-centric total rewards, and effective adaptation to evolving workplace policies.

Canadian employers are entering the 2026 planning cycle with cautious optimism, balancing budget decisions against a backdrop of economic uncertainty and steady inflation. Eckler’s 2026 Compensation Planning Survey offers timely insights into the trends and priorities shaping today’s HR strategies—from compensation to broader workforce initiatives.

Base salary increases across Canadian organizations are continuing their downward trajectory, with this year’s national average projected at 3.3%, a slight dip from last year’s actual increase of 3.4% and the previous projection of 3.6%. This moderation in salary growth reflects a cautious outlook among employers, influenced by external economic factors such as relatively stable but persistent unemployment rates, complex trade dynamics, and the recent trend of falling interest rates.

While salary freezes remain uncommon—with only 5% of organizations planning no increases—some uncertainty remains, as 29% of respondents remain undecided, mirroring the broader conservatism that characterizes budget planning in the current climate. More than half of organizations are reporting either similar or lower increases compared to last year, highlighting the impact of a slower labour market.

Organizations that have decided on pay increase budgets for 2026 are forecasting an average base salary increase of 3.3%.

More details of what can be found in our full report; reach out for your copy today. Further insights are accessible via our interactive tool.

Other key trends

The top trending human capital priorities and initiatives being reported for 2026 include:

• Participating in salary benchmark surveys (44.8%).
• Having up-to-date job descriptions (44.5%).
• Conducting and/or producing more resources and education training on compensation for people leaders (34.1%).
• Enhancing total rewards strategies to be more well-rounded, flexible and employee-centric (34.1%).
• Conducting pay equity analysis (32.1%).
• Only 15.1% of organizations have confirmed a promotion budget for 2026, and even those are expected to be modest with over half (52.5%) allocating 1% or less. Meanwhile, most employers (55.6%) report that the average range of base salary increases awarded falls between 5.1% and 10.0%.
• Workplace policies continue to be a key focus for employers, with 64.4% having adopted hybrid work models. Among these organizations, a strong majority (73.4%) require employees to be in the office at least two to three days each week—highlighting a shift toward more structured flexibility.
• The competition for talent remains intense. Employers cite the top drivers of employee turnover as pursuit of new opportunities (58.6%) and higher compensation (58.0%), followed by limited career growth and progression (45.4%).
• Pay transparency in Canada shows moderate maturity overall. Ontario exhibits the widest variation in practices, while Alberta and British Columbia lead with more advanced approaches. In contrast, the Atlantic provinces continue to lag.

Learn more at Eckler.ca. Connect with one of your compensation consultants at compconsulting@eckler.ca.