You might get a salary increase that outpaces inflation next year
If you’re unhappy with your current salary, a healthy raise might come your way next year.
Telus Health’s annual Salary Projection Survey forecasts a 3.45% increase in average base salaries for non-unionized employees in Canada in 2025.
This significantly exceeds Canada’s current inflation rate of 2%, as reported by the Bank of Canada in September.
“The persistent demand for skilled talent is driving robust salary growth into 2025, despite easing inflationary pressures on employers,” said Guylaine BĂ©liveau, national practice leader of compensation consulting at Telus Health, in a statement.
“As inflation rates decline, employees stand to reclaim purchasing power lost in recent years. This shift could significantly boost individual financial well-being and overall workplace morale.”
According to Telus Health, the forecast, excluding salary freezes, is driven by labour shortages.
The findings are based on data from over 355 Canadian organizations across various industries.
Salary projections by province
The survey found that British Columbia will lead in raises next year, with a projected 3.6% increase in the highest average base salaries, followed by Alberta at 3.54%.
Ontario and Quebec are slightly behind at 3.43% and 3.41%, respectively.
Nova Scotia consistently shows the lowest forecasted increases among provinces, with statistically significant data at 2.94% for 2024 and 2025.
Telus Health
Salary projections by industry
When it comes to raises by industry, the survey found that the highest forecasted increases for 2025 are expected in construction (4.13%), real estate (3.92%) and business services (3.90%).
On the other hand, if you work in industries like public administration (2.75%), health care (2.92%) and education (2.93%), you’re expected to get the lowest salary increases next year.
Telus Health
Developing future leadership
The report also highlights Canadian employers’ top priorities for 2025, which include worker engagement and building critical skills for leaders.
It adds that there’s an increasing focus on upskilling, training, and development programs and cultivating current and future leadership.
In response to the cost-of-living crisis, the survey found that 59% of organizations have implemented or plan to implement programs to enhance financial well-being.
“These initiatives include healthcare spending accounts (24% of organizations), financial literacy education (20%) and group RRSPs (18%),” it reads.
This article was originally published on September 26, 2024. It has since been updated.
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