Salaries for non-unionized workers in Canada are forecasted to increase by an average of 3.45 per cent in 2025, marking the first time in four years that wage growth is expected to outpace inflation, according to TELUS Health’s 42nd annual Salary Projection Survey.
The report highlights continued wage increases amid persistent labour shortages, with the projected salary hike exceeding the Bank of Canada’s current inflation rate of 2.0 per cent.
“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 for Compensation Consulting at TELUS Health. “As inflation rates decline, employees stand to reclaim purchasing power lost in recent years.”
Based on data from more than 355 Canadian organizations, the report reveals notable regional and industry-specific trends. British Columbia is expected to lead provincial salary growth with an average increase of 3.60 per cent, followed closely by Alberta at 3.54 per cent and New Brunswick at 3.50 per cent. In contrast, Nova Scotia is projected to see the lowest salary growth at 2.94 per cent, mirroring 2024’s figures.
Among industries, construction is forecasted to see the highest wage growth in 2025, with salaries expected to rise by 4.13 per cent, followed by real estate (3.92 per cent) and business services (3.90 per cent). Public administration, meanwhile, is projected to have the lowest increase at 2.75 per cent.
Employers are also focusing on non-salary initiatives aimed at improving employee financial wellbeing. According to the survey, 59 per cent of organizations have either implemented or plan to introduce programs such as healthcare spending accounts, financial literacy education, and group RRSPs to support their workforce.
“Employees are seeking more than just competitive salaries,” said Philip Mullen, Vice President of Employer Solutions Consulting at TELUS Health. “They’re looking for comprehensive support for their financial, physical, and mental wellbeing. Organizations that integrate benefits such as retirement planning and health services are likely to see improved recruitment and retention outcomes.”
The survey also explored the growing role of artificial intelligence (AI) in the workplace, finding that nearly three-quarters of organizations are either exploring or seriously considering AI solutions to boost operational efficiency.
Conducted in July and August 2024, the TELUS Health Salary Projection Survey is used by HR and compensation leaders to inform strategic planning around total compensation.
