Payscale's 2025-2026 Salary Budget Survey
Payscale's 2025-2026 Salary Budget Survey reveals that organizations are anticipating modest salary increases of 3.5% in the United States and 3.3% in Canada for 2026, representing a slight decrease of 0.1% from 2025 levels. Economic uncertainty is driving this conservative approach, with only 16% of US organizations and 10% of Canadian organizations planning higher budgets than the previous year. The survey collected data from 1,551 organizations and shows that concern about labor competition has dramatically dropped by 19% in the United States, while economic concerns remain the primary factor influencing budget decisions. Most organizations expect their salary increase budgets to remain the same, with 68% of US and 74% of Canadian companies maintaining current levels.
In this guide, you'll explore
- Average salary increases expected to be 3.5% in the US and 3.3% in Canada for 2026, down 0.1% from 2025
- Only 16% of US and 10% of Canadian organizations plan higher salary budgets than previous year
- Economic uncertainty cited as primary concern by 66% of US and 76% of Canadian organizations with lower budgets
- Concern about labor competition dropped dramatically by 19% in the United States compared to last year
- Most organizations (68% US, 74% Canada) expect salary increase budgets to remain the same as 2025