Non-unionized Canadian workers can expect a 3.45% salary increase in 2025, driven by labour shortages
TELUS Health released its 42nd annual Salary Projection Survey, forecasting a 3.45 percent increase in average base salaries for non-unionized workers in Canada in 2025.
This projection, excluding salary freezes, marks the first time in four years that salary growth is expected to outpace inflation. The Bank of Canada recently reported that inflation currently sits at 2.0 percent. TELUS Health attributes the projected salary increases to ongoing labour shortages.
“The persistent demand for skilled talent is driving robust salary growth into 2025, despite easing inflationary pressures on employers,” said Guylaine Béliveau, National Practice leader, Compensation Consulting, at TELUS Health.
She also noted, “As inflation rates decline, employees stand to reclaim purchasing power lost in recent years. This shift could significantly boost individual financial wellbeing and overall workplace morale.”
The survey, which included data from over 355 Canadian organizations across various industries, revealed several important findings.
Provincial salary projections for 2025 show British Columbia leading with a 3.60 percent increase in base salaries, followed by Alberta at 3.54 percent and New Brunswick at 3.50 percent.
Quebec, which saw a strong growth of 3.85 percent in 2024, expects a slower increase of 3.41 percent in 2025. Nova Scotia consistently showed the lowest projected increases, with 2.94 percent for both 2024 and 2025.
From an industry perspective, Construction is projected to see the highest salary increase at 4.13 percent, followed by Real Estate at 3.92 percent, and Business Services at 3.90 percent.
Public Administration is expected to have the lowest salary increase at 2.75 percent in 2025, replacing Information Technology, which had the lowest growth in 2024.
In terms of salary structures in Canada, the projected increase for 2025 stands at 2.72 percent, which is slightly lower than the 2.89 percent increase implemented in 2024.
Canadian employers' priorities remain similar between 2024 and 2025, with a continued focus on employee engagement and building critical skills for leaders.
There is also a growing emphasis on upskilling, training and development, and leadership programs.
Responding to ongoing financial challenges, 59 percent of organizations have implemented or plan to implement initiatives to improve employee financial wellbeing.
These measures include healthcare spending accounts (24 percent of organizations), financial literacy education (20 percent), and group RRSPs (18 percent).
This year’s survey also explored the growing use of artificial intelligence (AI) in the workplace. Nearly three-quarters (74 percent) of surveyed companies are either actively exploring or seriously considering AI solutions to improve operational efficiency in the coming year.
This reflects the increasing role of AI in shaping productivity and innovation in Canadian businesses.
Additionally, TELUS Health highlighted the need for a holistic approach to employee wellbeing.
Data from last year's TELUS Financial Wellbeing report indicated that 25 percent of workers in Canada are concerned about their ability to retire, while 30 percent prioritize financial planning in their benefits plans.
According to Philip Mullen, vice president, Employer Solutions Consulting at TELUS Health, “In today’s evolving job market, employees are seeking more than just competitive salaries. They're looking for employers who offer comprehensive support for their financial, physical, and mental wellbeing.”
“Organizations that partner with benefits administrators to create holistic packages—integrating retirement planning, investments, and health services—are likely to see improved recruitment outcomes, higher retention rates, and enhanced productivity."
