Employers plan steady merit-based pay increases for 2027 despite uncertainty, survey says

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeWorkEmployers plan steady merit-based pay increases for 2027 despite uncertainty, survey saysMercer said its data suggests most employers are taking a more intentional approach to compensation strategiesLast updated 29 minutes ago The survey said industry salary budgets vary around national averages, with tech leading market increases for merit and total increases, whole retail and wholesale are also above average. Photo by Vergani Fotografia/Getty ImagesCanadian employers plan to keep next year’s pay increases steady despite geopolitical uncertainty, according to a survey by Mercer Canada.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountMercer, rebranding as Marsh on Sept. 1, said its survey of more than 470 Canadian organizations found that employers, on average, plan to hold base salary increases for merit nearly the same as reported in the last two years.It said compensation budgets for 2027 will be steady and employers are taking a measured approach that balances the current economic uncertainty with talent priorities while relying on more than the annual merit cycle alone.FP Work touches on HR strategy, labour economics, office culture, technology and more.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Work will soon be in your inbox.We encountered an issue signing you up. Please try again“Right now, economic uncertainty plays a huge role in employers’ compensation strategies, so organizations are planning to make the most of their spending by using data to ensure their spend goes to areas of labour need and where talent risk is high,” Mercer Canada’s senior talent and careers leader, Elizabeth English, said in a press release Aug. 27.English said most organizations are still early in the annual planning cycle, and while the current news cycle points to continuing instability, past data shows these projections are likely to be accurate.Mercer said its data suggests most employers are taking a more intentional approach to compensation, as many employers are still early in the process of turning that strategy into finalized budget decisions.As of July 2026, 89 per cent of organizations were still collecting information for 2027 salary budgets, while six per cent had proposed budgets to leadership and five per cent had already secured approval.According to Mercer, employers say the economy will continue to influence compensation decisions in 2027, with 60 per cent expecting at least a moderate impact. At the same time, organizations are balancing those pressures with a focus on talent development, market competitiveness and compensation adjustments, it said.The survey said industry budgets vary around national averages, with tech leading market increases for merit and total increases, whole retail and wholesale are also above average.Meanwhile, the banking or financial services industry is budgeting the smallest increases so far next year, and consumer goods and energy are also below the national merit average.We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.