Here's how much Ontario salaries are expected to increase this year

Salary is always top of mind for employees in Ontario's high-cost-of-living environment, but let's face it, not everyone receives the raise they feel they deserve. 

A new report from consulting firm Normandin Beaudry shows the projected trend of planning salary increases for Ontario companies in 2026. And after surveying nearly 130 organizations in the last quarter of 2025, the results are a bit of a buzzkill for anyone hoping for a big bump.

Companies continue to see a slow but steady decline in salary increase budgets due to economic and trade uncertainty. While they are being more cautious when planning salary increases, it's not to say that employees are getting nil this year. 

Among the 125 organizations in Ontario that provided data, 19.2 per cent are implementing a salary freeze, while the rest plan to increase salaries by an average of 2 per cent in 2026.

2026 Salary Forecast from Normandin Beaudry.

Ontario employees in government roles can expect a slightly above-average increase of 2.1 per cent, while those in nonprofit organizations are looking at a 1.9 per cent increase. Employees at publicly traded companies are expected to see a 2.2 per cent top-up, while those at private companies are likely to earn a 1.9 per cent pay bump.

Picture it this way: if you're a campaign manager for a nonprofit in Toronto with an annual salary of $70,000, that could very well increase to $71,330 by the end of the year. 

Better than nothing, right?

Beyond raises, the report notes that, as employees demand more pay transparency, companies are shifting their focus to improving the overall employee experience and "total rewards."