Salary Growth to Outpace Inflation in 2025: A Positive Shift for Canadian Workers

In a promising turn for Canadian workers, Telus Health has projected a 3.45% increase in average base salaries for non-unionized employees in 2025, marking the first time in four years that wage growth will outpace inflation. This forecast, released in the company’s latest Salary Projection Survey, comes amidst easing inflation pressures and enduring labor shortages, indicating that workers may finally regain some purchasing power lost over recent years.

Wage Growth Across Regions and Industries

Telus Health’s survey, based on data from over 355 Canadian organizations, reveals variations in wage growth across provinces and industries. British Columbia leads with a projected 3.6% increase, closely followed by Alberta at 3.54% and New Brunswick at 3.5%. Quebec, which saw a strong growth rate of 3.85% in 2024, anticipates a slight slowdown to 3.41% in 2025, while Nova Scotia lags with a modest 2.94% increase.

Sector-wise, construction, real estate, and business services are expected to see the highest salary increases, with projected growth rates of 4.13%, 3.92%, and 3.9%, respectively. In contrast, public administration is forecasted to experience the lowest salary growth at 2.75%.

Employer Focus on Upskilling and Financial Well-being

To retain talent, Canadian employers are emphasizing employee engagement, upskilling, and leadership development. Additionally, nearly 60% of surveyed organizations have implemented or plan to introduce financial well-being programs, ranging from healthcare spending accounts and financial literacy education to group retirement savings plans.

“In today’s evolving job market, employees seek more than just competitive salaries,” says Philip Mullen, vice president of employer solutions consulting at Telus Health. “They want holistic support for their financial, physical, and mental well-being.” Organizations offering comprehensive benefits packages, integrating retirement and health services, are poised to improve recruitment, retention, and productivity.

The Role of AI in Canadian Workplaces

This year’s survey highlights a growing trend: 74% of Canadian companies are considering or actively exploring artificial intelligence (AI) solutions to boost efficiency. As organizations continue to face tight labor markets, AI is seen as a potential solution to optimize operations and enhance productivity. This focus on AI reflects an increasing commitment to innovation and resilience in the face of ongoing workforce challenges.

A Holistic Approach to Employee Well-being

The emphasis on financial well-being is part of a broader trend toward supporting overall employee well-being. In last year’s TELUS Financial Wellbeing Special Report, 25% of Canadian workers expressed concerns about retirement readiness, while 30% identified financial planning as a key benefit. Employers are increasingly recognizing the need for comprehensive support that goes beyond salaries, catering to the diverse needs of today’s workforce.

As we move into 2025, the insights from the 42nd Telus Health Salary Projection Survey underscore a pivotal moment for Canadian workers and employers alike. With wage growth set to surpass inflation, coupled with a renewed focus on well-being and innovation, businesses that adapt to these trends are likely to see a stronger, more motivated workforce in the year ahead.

Salary growth forecasted to outpace inflation for the first time in four years

2025 Telus Salary Projection Survey