2024 salary increase projections: Increases to remain high, but lower than the past two years  

In just four weeks, more than 325 organizations took part in our 2024 Salary Increase Survey. Preliminary results show that the country’s average salary increase budgets granted in 2023 reached 4.0%—slightly below last winter’s initial projection of 4.2%. Current projections for 2024 are calling for average salary increases of 3.5%, excluding salary freezes.

These preliminary results suggest that organizations are planning substantial salary increases, albeit lower than those of the last two years. Nevertheless, these increases are higher than historical trends, which seems to suggest that organizations continue to navigate the ongoing economic uncertainty and difficult labour market conditions such as a low unemployment rate, labour shortage and looming recession.

Moreover, about half of responding organizations in Canada are planning for an average additional budget of 1.0% in 2024. In comparison, in 2023, that same number of responding organizations granted an additional budget averaging 1.3%. This slight decrease may be due to the many strategic adjustments made over the past two years. Indeed, a one-time budget grants organizations greater flexibility over the year and, more specifically, is aimed at:

• Making market adjustments;
• Retaining employees in strategic/critical roles;
• Differentiating rewards for high performers;
• Retaining employees with perceived retention risk;
• Addressing internal equity issues;
• Accelerating the progression of employees in the lower end of their pay range; and
• Granting off-cycle pay increases.

Total average increases granted in 2023 by all responding organizations in Canada was 4.7%¹ for 2023, with a projected increase of 4.0%¹ for 2024. When looking only at organizations in Canada that granted or projected an additional budget for those same years, the average is 5.3% granted in 2023 and 4.5% projected for 2023. 

There’s still time to answer the survey. Participate by July 14 to receive detailed results in September, including the exclusive section on: 

• annual performance bonuses; 
• telework and work schedule policies;  
• salary transparency; 
• managing compensation amidst economic uncertainty and difficult labour market conditions;  
• equity, diversity and inclusion.  

[1] Includes increase budgets and additional budgets. The data shown is lower than the sum of the average of the increase budgets and additional budgets because not all of the organizations have an additional budget. 

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