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Salary increases 2026: prospects, challenges and solutions for companies

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Salary increases 2026: prospects, challenges and solutions for companies

According to the most recent data published by the Chartered Professionals in Human Resources, Quebec employers expect to grant average salary increases of 3.2% in 2026 (compared to 3.1% in the rest of Canada).

Since 2023, for the fourth consecutive year, projected salary increases in Quebec have exceeded the 3% mark. This is a clear signal: despite a still uncertain economic context and stabilizing inflation, organizations continue to rely on compensation to remain competitive, even if there is a perceived desire to gradually return to levels more in line with their real financial capacity.

What this means in concrete terms

Here are some of the things we’re finding out in the field:

  • Salaries need to be adjusted, not randomly, but strategically. Ad hoc, reactive adjustments can create internal imbalances and undermine overall consistency.
  • Talent retention is becoming critical. A fair, well-positioned salary package is a powerful retention lever.
  • Pay equity can no longer be a passive issue. It must be actively integrated into your compensation strategy.
  • Pay transparency is becoming a strong expectation, but it needs to be well managed. It’s not a question of revealing everything, but of building a structured and responsible communication.

Building your compensation strategy together

The salary increases announced for 2026 represent an opportunity to rethink talent management and development models. According to an analysis recently published by the magazine Gestion HEC Montréal, a well thought-out salary structure promotes not only retention, but also the commitment of staff members. The challenge? Integrating these adjustments into a global strategy, where compensation becomes a lever of attraction, but also of mobilization.

Our team of global compensation experts can help you meet this challenge, thanks to an approach and support based on three pillars: rigorous analysis, strategic co-creation and skills transfer.

Customized diagnostics

Before taking any action, we carry out an in-depth analysis:

  • your current compensation practices (internal and external);
  • potentialpay equity gaps;
  • competitive challenges in your industry.

This step provides you with a clear picture of your situation and enables you to target the appropriate interventions.

Establishing a clear and sustainable salary structure

We help you develop a compensation strategy that is aligned with your vision and financial capabilities:

  • job classification;
  • definition of salary scales;
  • development of adjustment and evolution principles;
  • integration of other components of total compensation (vacation, insurance, RRSPs, recognition, etc.);
  • compliance with the Pay Equity Act.

Support, training and practical tools

We believe in the autonomy of organizations. That’s why our approach includes :

  • coaching managers to strengthen their ability to talk about compensation with confidence;
  • training the HR team to maintain and adjust the structure;
  • monitoring and communication tools adapted to your reality.

Integrating pay transparency

Pay transparency can build trust, reduce tension and sustain commitment. But it must be used judiciously.

Our recommendation: communicate the principles, not necessarily the amounts. Explain the adjustment logic (according to experience, performance, responsibilities, etc.), the development mechanisms and the guidelines in place.

This type of structured transparency enables :

  • clarify expectations;
  • reduce perceptions of injustice;
  • facilitate conversations between managers and team members.

It’s an approach we detailed in our article on salary transparency.

An example of support in global compensation

We recently worked with a Montreal-based NPO operating in the cultural sector, faced with high staff turnover and wage disparities between its teams. Thanks to Flexia Conseil’s support, this organization was able to carry out a complete diagnosis, review its salary structure and implement equity mechanisms. The result: improved retention, a reduction in internal conflicts and increased attractiveness to candidates, with a stronger employer brand.

Your next steps for 2026

To prepare yourself effectively for 2026, we suggest that you :

  • Mandate a compensation audit to gain a factual overview;
  • Identify critical items (retention, scarcity, inconsistency);
  • Review your compensation policy through a structured approach;
  • Plan a job classification review, if necessary;
  • Equip your managers to support conversations with teams;
  • Clearly and progressively communicate the changes to come.

Ready to structure your remuneration for 2026?

In light of the information regarding the 2026 salary increase projections, it’s no longer enough to react – you have to plan ahead. With a well thought-out salary strategy, you can transform this demanding context into a lever for performance, equity and mobilization.

Would you like to clarify your salary structure, review your policies or ensure equity compliance? Let’s talk.

To find out more about salary trends and best practices, consult the following resources:

Anthony Langlois
HR Consultant

Anthony is a human resources and organizational development consultant at Flexia Conseil. He holds a Bachelor’s degree in Business Administration, specializing in Human Resources Management, as well as a DEC in Accounting, and is particularly active in compensation management and pay equity. Curious and on the lookout for HR trends, he is actively involved in organizational development projects for SMEs.

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