Average increase 2027
3.1%
Normandin Beaudry, 3.3% with extras
Merit / total
3.0% / 3.2%
Mercer Canada
CPI inflation
3.1%
September 2026
Freezes planned
3.6%
of employers, from 1.7%
Survey figures from Normandin Beaudry and Mercer Canada; inflation from Statistics Canada. After-tax figures on this page are PayMetric Labs' own modelled estimates.
Your salary, before and after the raise
Federal and provincial tax, CPP, EI and credits for your province.
Salary increase 2027 in Canada: what the surveys say
Both major Canadian surveys landed in late summer and say the same thing: steady. Normandin Beaudry, which surveyed more than 800 organizations, puts the 2027 average at 3.1% excluding freezes, matching 2026, even though the economy slipped into a technical recession this year. Mercer Canada's July survey of more than 470 employers has 3.0% merit and 3.2% total, against 3.3% actually paid in 2026.
The detail matters more than the headline. About 46% of organizations set aside an extra 0.9% on top of their raise budget, mostly for market adjustments, high performers and people in critical roles. That pot isn't automatic: it goes to people who make a case. Freezes remain rare, though 3.6% of employers plan one for 2027, up from 1.7% who froze in 2026. Promotions are slowing too: Mercer expects 6.4% of staff to be promoted in 2027, down from 7.6%.
| Normandin Beaudry, by sector | 2027 |
|---|---|
| Telecom, data processing and hosting | 3.4% |
| Finance and insurance | 3.4% |
| Real estate, rental and leasing | 3.3% |
| Technology | 3.3% |
| Construction | 3.3% |
| Professional, scientific and technical services | 3.2% |
| By employer type | 2027 |
|---|---|
| Privately held | 3.2% |
| Publicly traded | 3.1% |
| Not-for-profit | 3.0% |
| Government and Crown corporations | 2.9% |
| High tech (Mercer, total) | 3.6% |
| Retail and wholesale (Mercer, total) | 3.4% |
| Banking and financial services (Mercer, total) | 3.0% |
Sources: Normandin Beaudry Salary Increase Survey (September 2026) and Mercer Canada (August 2026), as reported.
Why a 3.1% raise grows your take-home a bit more than 3.1%
In many countries a raise loses ground to tax, because more of it falls into higher brackets. Canada mostly avoids that. Every January the federal government, and Ontario, BC and Alberta, raise their brackets, the basic personal amount and other credits in line with inflation; we project about 2.6% federally for 2027 (see the 2027 tax brackets). So a raise that roughly matches inflation isn't taxed at a higher rate.
On top of that, the CPP contribution rate falls to 5.75% from 5.95% in 2027, worth up to about $142 a year if you earn below the ceiling, while EI edges up slightly. Our CPP and EI 2027 guide has the details. Put together, take-home pay rises slightly faster than gross pay for most people.
| Salary now | Ontario | British Columbia | Alberta | Raise to match 3.1% |
|---|---|---|---|---|
| $50,000 | +$1,316 (3.3%) | +$1,326 (3.3%) | +$1,320 (3.3%) | 2.9% |
| $65,000 | +$1,638 (3.2%) | +$1,656 (3.2%) | +$1,645 (3.2%) | 2.9% |
| $80,000 | +$1,967 (3.3%) | +$1,995 (3.3%) | +$1,974 (3.3%) | 2.9% |
| $100,000 | +$2,393 (3.2%) | +$2,440 (3.2%) | +$2,405 (3.2%) | 3.0% |
| $150,000 | +$3,258 (3.1%) | +$3,358 (3.1%) | +$3,395 (3.2%) | 3.1% |
Extra take-home a year from a 3.1% raise, and the raise needed in Ontario for take-home to keep pace with 3.1% CPI. PayMetric Labs' own modelled estimate: current salary on 2026 federal and provincial tax, CPP and EI; raised salary on 2027 CPP and EI parameters and income tax with every threshold indexed by the projected 2.6% (provinces use their own inflation rates, so their real figures differ slightly). No RRSP, union dues or benefits. Quebec is not modelled.
So on $65,000 in Ontario, a 3.1% raise adds about $1,638 a year after tax, a 3.2% rise in take-home pay. The margin over inflation is thin, and it disappears if inflation picks up again. Gasoline drove much of this year's rise, so a fresh energy spike would erase it.
How to get more than the average in 2027
- Ask about the extra pot. Nearly half of employers hold an additional budget for market adjustments and retention. Ask your manager whether your role is being reviewed against the market, not just for merit.
- Bring a benchmark. Check your role on our Canadian salary pages or run the Am I underpaid checker. Being below market for your level is a stronger case than inflation.
- Mind the timing. In Mercer's July survey most employers were still gathering information for 2027 budgets. The fall is when numbers get set, so raise it now.
- Compare offers after tax and by province. If a new job means a new province, provincial tax changes what you keep: try the province comparator or the offer comparison calculator.
- Put some of it to work. More pay means more RRSP room, and the TFSA limit is expected to rise to $7,500 in 2027.
Salary increase 2027 Canada: frequently asked questions
What is the average salary increase in Canada for 2027?
About 3.1%. Normandin Beaudry's survey of more than 800 Canadian organizations projects an average of 3.1% for 2027, excluding freezes, the same as was actually granted in 2026, or 3.3% counting extra budgets. Mercer Canada's survey of more than 470 employers has 3.0% for merit and 3.2% in total.
Is a 3% raise good in Canada in 2027?
It's about average and, for once, roughly keeps pace with prices. CPI rose 3.1% in the 12 months to September 2026. Because tax brackets are indexed and the CPP rate falls in 2027, take-home pay grows a little faster than gross pay: on $65,000 in Ontario you'd need only about 2.9% to match 3.1% inflation, PayMetric Labs' own modelled estimate.
Why does my raise seem bigger after tax in 2027?
Two January changes work in your favour. Federal and provincial brackets and credits rise with inflation (about 2.6% federally, on our projection), so a raise that keeps up with prices isn't taxed more heavily. And the CPP rate falls to 5.75% from 5.95%, saving up to about $142 a year below the earnings ceiling. Above about $87,400 the higher CPP and EI ceilings take back a little of that.
Why does my first paycheque of 2027 look different from my raise letter?
Payroll deductions restart every January. CPP and EI begin again from zero, so higher earners who maxed out in the fall see bigger deductions in January than in December. New tax tables and benefit premium changes also land then. Compare your January stub with last January's, not last December's.
Which industries plan the biggest raises in 2027?
In Normandin Beaudry's survey, telecommunications and data services and finance and insurance lead at 3.4%, followed by real estate, technology and construction at 3.3%. Mercer Canada has high tech highest at 3.6% total and banking and financial services lowest at 3.0%. The two surveys group industries differently, so their sector figures aren't directly comparable.
Robert Half says salaries rise 1.4%. Which figure is right?
Both, because they measure different things. Robert Half's salary guide tracks projected starting salaries for new hires. Normandin Beaudry and Mercer survey the budgets employers set for raises to current staff. If you're staying put, the 3% range is your benchmark; if you're job hunting, the starting-salary data is.
Does this apply in Quebec?
The survey averages cover Quebec, but our after-tax figures don't. Quebec has its own income tax, QPP instead of CPP and QPIP, and the 2027 QPP figures aren't published yet. Our Quebec take-home guide explains how Quebec pay differs.
Related: Quebec take-home pay · Software engineer salary in Canada · Bonus tax calculator
Sources and method
Salary budgets: Normandin Beaudry, 16th Salary Increase Survey (more than 800 organizations, summer 2026, as reported); Mercer Canada compensation planning survey (July 2026, more than 470 organizations, as reported). Inflation: Statistics Canada CPI, 12 months to September 2026.
After-tax figures are PayMetric Labs' own modelled estimates from our Canadian tax engine, described under the table. They will move when the CRA publishes 2027 indexation and the CPP ceiling in November. This is general information, not personal tax or financial advice.