Resource Centre - TELUS Health

2025 Salary Projection Survey: Salary growth forecasted to outpace inflation for first time in 4 years

Written by TELUS Health | October 9, 2024

A respected tool for human resources and compensation experts, the 42nd annual TELUS Health Salary Projection Survey is forecasting a 3.45 per cent increase in average base salaries for Canadian organizations in 2025. 

This projection, which excludes salary freezes, significantly outpaces Canada’s current inflation rate for the first time since 2021. Employees stand to reclaim purchasing power lost in recent years, which could significantly boost individual financial wellbeing and overall workplace morale.

Key findings from the report include:

  • Provincial salary projections for 2025 show regional variations:
    • British Columbia leads with a projected 3.60 per cent increase in average base salaries, followed by Alberta at 3.54 per cent and New Brunswick at 3.50 per cent.
    • Quebec saw strong salary growth of 3.85 per cent in 2024, but expects growth to slow to 3.41 per cent in 2025.  
    • Nova Scotia consistently shows the lowest projected increases among provinces with statistically significant data at 2.94 per cent for both 2024 and 2025. 
  • Industry to industry, the highest projected increases for 2025 are expected in Construction (4.13 per cent), Real Estate (3.92 per cent) and Business Services (3.90 per cent). These same three industries also led salary growth in 2024. 

  • With respect to salary structures, the forecasted increase for 2025 (2.72 per cent) is slightly lower than the actual increase implemented in 2024 (2.89 per cent). 

The study also highlights that Canadian employers' priorities remain relatively consistent between 2024 and 2025. Employee engagement and building critical skills for leaders continue to be top focus areas. Additionally, there's an increasing emphasis on upskilling, training and development programs and cultivating current and future leadership. Ongoing recruitment and retention challenges have also prompted organizations to implement or plan to implement programs to enhance financial wellbeing, including healthcare spending accounts (24 per cent), financial literacy education (20 per cent) and group RRSPs (18 per cent).

Researchers also inquired  about the adoption of artificial intelligence (AI) for the first time. The results reveal a significant trend: nearly three-quarters of respondents (74 per cent) are either actively exploring or seriously considering AI solutions to boost operational efficiency in the upcoming year. 

About the TELUS Health Salary Projection Survey
This year’s report covers actual salary budget increases in 2024, projections for 2025, and details on how respondents are navigating these challenges. Leaders have consistently relied on this survey for crucial insights into salary and human resources trends, helping in the strategic planning of their approach towards total compensation. 

Read more about the potential impact, and how the data breaks down province-to-province and by industry here.