| 3.4% | Salary Increase for 2027 (excluding salary freezes) |
| 3.3% | Salary Increase for 2027 (including salary freezes) |
| 2.5% | Salary Structure Adjustments for 2027 (excluding salary freezes) |
| 2.0% | Salary Structure Adjustments for 2027 (including salary freezes) |
| 1.2% | Organizations Planning Salary Freezes in 2027 |
Budgets are Stabilizing
Solertia’s Salary Forecast Survey, conducted between July 13 and August 12, 2026 among 402 Québec organizations, confirms a return to more stable salary increase budgets. For 2027, organizations are projecting average salary increases of 3.4%, excluding salary freezes, and 3.3%, including salary freezes. They also anticipate salary structure adjustments of 2.5% and 2.0%, respectively. Salary freezes remain uncommon, as only 1.2% of organizations expect to completely suspend salary increases.
The 2026 results show that actual increases slightly exceeded forecasts for both salaries and salary structures. Salary increases reached 3.6%, compared with a projected 3.5%, while salary structure adjustments averaged 2.7%, compared with an anticipated 2.5%.
Projected 2027 Salary Increases and Salary Structure Adjustments by Job Category
Forecasts remain relatively consistent across job categories:
Average 2027 Salary Forecasts in Québec
| Job Category | Average Salary Increases Including Salary Freezes | Average Salary Increases Including Salary Freezes | Average Salary Structure Adjustments Including Salary Freezes | Average Salary Structure Adjustments Including Salary Freezes |
|---|---|---|---|---|
| All positions combined | 3.3% | 3.4% | 2.0% | 2.5% |
| Senior Executives | 3.3% | 3.4% | 2.0% | 2.5% |
| Managers and Professionals | 3.4% | 3.4% | 2.1% | 2.5% |
| Operations and Production Employees | 3.1% | 3.2% | 2.0% | 2.4% |
| Administrative and Technical Support | 3.2% | 3.2% | 2.0% | 2.5% |
Sector-Specific Trends Provide Deeper Insight
Sector forecasts reveal significant differences. Projected salary increases range from 2.7% to 4.0%, while salary structure adjustments range from 1.9% to 3.1%. Notably, the sectors projecting the highest salary increases are not necessarily those planning the largest salary structure adjustments. These differences reflect market realities and compensation priorities that vary across industries.
Average 2027 Salary Forecasts by Industry Sector (Excluding Salary Freezes)
Ranked From Highest to Lowest Salary Increase
| Secteurs d’activité | Salaires | Structure |
|---|---|---|
| Transportation and Warehousing | 4.0% | 2.5% |
| Agriculture, Forestry and Fishing | 3.8% | 1.9% |
| Finance and Insurance | 3.8% | 2.6% |
| Utilities | 3.8% | 3.0% |
| Professional, Scientific and Technical Services | 3.8% | 2.5% |
| Information Technology | 3.7% | 2.3% |
| Public Administration | 3.5 % | 2.7% |
| Manufacturing | 3.2% | 2.4% |
| Other Services, Including Construction | 3.2% | 2.6% |
| Health Care and Social Assistance | 3.1% | 3.1% |
| Arts, Entertainment and Recreation | 3.0% | 2.1% |
| Wholesale and Retail Trade | 2.9% | 2.5% |
| Energy, Mining, Oil and Gas | 2.7% | 2.2% |
What This Means for Employers
With budgets becoming more stable, the challenge is no longer simply determining how much to invest, but rather where and how to invest. For 2027, three decisions deserve particular attention:
- Adjust salary structures to remain aligned with the market.
- Allocate individual salary increases based on employee progression, contribution and position within the salary range.
- Maintain flexibility to address pay gaps, support promotions and protect critical roles.
Total Rewards should be viewed through a holistic lens. Our survey shows that nearly eight in ten organizations intend to modify at least one component of their Total Rewards offering over the next 12 to 18 months. In 2027, success will not belong to the organizations that spend the most, but to those that invest strategically, aligning every dollar spent with business performance, employee engagement, and the overall employee experience.
Five Decisions to Make Before Distributing the Budget
Market data serves as a reference point. It is the following five trade-offs that determine the real impact of the budget:
- Distinguish structure adjustment from individual progression: Structure adjustment keeps the salary structure aligned with the market. Progression recognizes how a person evolves in their role. These two decisions must be budgeted and explained separately.
- Assess the gaps to close before confirming the budget: An analysis by job, level, business unit and employee group makes it possible to identify compression zones, market gaps and situations that require a targeted correction. This review should come before the budget decision.
- Plan for flexibility: Part of the budget should remain available for promotions, market adjustments, critical skills and internal equity situations.
- Find the right balance: Managers must be able to recognize contribution and development, but within simple, documented and calibrated guidelines. Too much discretion weakens consistency. Too little prevents taking field realities into account.
- Explain the decision in the employee’s language: A salary increase is only fully valued when the person understands how it was determined, where they stand in the salary range and what progression opportunities are available to them. This is often the most important step.
Participate in our Quebec Total Rewards and Salary Forecast Survey to receive a comprehensive report of the results.
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