Normandin Beaudry's survey reveals a 3.4 percent salary increase for 2025 as budgets tighte
Normandin Beaudry's 14th annual Salary Increase Survey shows that salary increase budgets are gradually decreasing, with an average increase of 3.4 percent projected for 2025, excluding salary freezes.
This marks a 0.2 percent decrease from 2024.
Darcy Clark, senior principal, Compensation at Normandin Beaudry, noted that while economic pressures and competition for talent persist, the salary increase budgets are slowly returning to pre-pandemic norms for the second consecutive year.
Despite the overall reduction in salary increase budgets, many organizations continue to set aside additional funds to handle compensation challenges arising from labour shortages and economic conditions.
This year, half of the surveyed organizations allocated an extra 1.0 percent beyond their general salary increase budget. For 2025, 44 percent plan to maintain this trend, using these additional budgets for market-driven adjustments, retaining employees in critical roles, and rewarding top performers.
Some sectors are forecasting above-average salary increases for 2025:
- High-tech: 4.3 percent
- Telecommunications, data processing, and related services: 3.9 percent
- Professional, scientific, and technical services: 3.7 percent
- Construction: 3.6 percent
- Computer design, security, IT services, and AI: 3.6 percent
- IT consulting services: 3.5 percent
- Energy, mining, and metals: 3.5 percent
- Foundations, community assistance, and health care: 3.5 percent
As inflationary pressures ease and the labour market stabilizes, companies are adopting a more conservative approach to managing payroll costs.
Clark pointed out that while salary increases remain above 3 percent, organizations are mindful of long-term affordability and are cautious about significantly raising recurring payroll expenses.
