Payscale’s Salary Budget Survey, based on data from 1,550 organizations collected between April and June 2024, reveals that planned salary increases for 2025 are slightly lower than those in 2024. The average increase is projected at 3.5% in the U.S. and 3.3% in Canada, down from 3.6% and 3.4%, respectively. Despite stabilizing inflation and a looser labor market, only 19% of U.S. and 13% of Canadian organizations expect higher salary budgets. Increased labor competition is the main driver for higher budgets, though this factor has declined. Mixed economic perceptions influence budget decisions.

Join for free to read