As we head toward 2026, Canada’s tech sector is navigating another year of rapid change—economic uncertainty, shifting talent dynamics, new regulatory pressures, and the accelerating impact of AI on how teams are structured and work gets done.
For leaders, this all comes down to one thing:
You need accurate, timely compensation intelligence to make the right decisions.
Here’s what the data from our 2025 Tech Sector Salary and Total Rewards Survey—and our November 2025 Member Pulse Survey—shows about the environment you’re planning for.
A Changing Economic and Talent Landscape
Tech employers are still operating in a low-growth, high-volatility macro environment. Real GDP growth is expected to hover around 1% into 2026, unemployment continues to rise, and cost-of-living pressures remain top-of-mind for employees.
At the same time:
- AI and cybersecurity continue to reshape core business needs
- Access to global talent is tightening, with reduced immigration targets
- Pay transparency policies are expanding, adding pressure to get ranges right
- Lean teams and efficiency models are the new normal
The takeaway?
Even with a labour surplus overall, competition for specialized tech skills remains intense—and mistakes in compensation strategy are costly.
Where Compensation Is Moving in 2025
Across the tech sector, salary movement in 2025 remained stable, with a 3.5% median common-incumbent salary increase, closely aligned to salary budgets.
But the details matter:
- Hot jobs—particularly in AI/ML, cybersecurity, cloud and data science—continue to see higher median increases and stronger year-over-year incumbent growth.
- Other roles experienced minimal movement, underscoring the need for precise benchmarking to avoid generalized market adjustments that can result in misaligned pay decisions.
Meanwhile, incentive structures continue to play an important role in overall compensation for the sector:
- 75% of organizations offer short-term incentives
- 52% offer long-term incentives, with a mix of options increasingly used to attract and retain high-impact talent
- Base salary remains the largest share of total cash compensation across all job levels
In an environment of heightened transparency and increased employee expectations, understanding these shifts in compensation matters.
Pay Transparency Is Reshaping Compensation Strategy
With pay transparency legislation spreading globally—and expanding in Canada—organizations are being pushed to rethink how they communicate pay.
From our 2025 data:
- Only 13% of tech companies currently share pay ranges internally for all roles
- Externally, 39% include ranges nationally, while 50% only include them where required
With more jurisdictions expected to implement pay transparency legislation in 2026, many organizations are moving from “minimum compliance” to proactive, strategic transparency. This requires confidence in your data—internally, externally, and across every job family.
Hybrid Work. New Benefits. Evolving Expectations.
Hybrid work remains the dominant model among Canadian tech employers:
- 71.4% hybrid
- 26% fully remote
- Only 2.6% fully onsite
And benefits continue to diversify. Organizations are increasingly exploring:
- RRSP matching
- Paid volunteer days
- Donation matching
- Flex/wellness allowances
Understanding where your offerings sit against the market will be crucial as competition for high-skill roles intensifies again.
Planning for 2026: Start With Reliable Compensation Data
With economic, policy, and talent shifts accelerating, leaders operating in Canada’s tech talent market need compensation data that is:
- Local and national
- Specific to Canada’s tech sector
- Granular across roles, levels, and specialized functions
- Up to date for the 2026 planning cycle
TAP Network’s 2025 Tech Sector Salary and Total Rewards Survey gives you that clarity.
With data from 206 Canadian tech companies and 26,000+ employee data points—across AI, SaaS, hardware, gaming, quantum, VFX, and more—it remains the most comprehensive source of tech and creative tech compensation intelligence in the country.
If you’re building your 2026 compensation strategy, this is the report you need.
Get the 2025 Salary & Total Rewards Survey
If you haven’t purchased the survey yet, now is the time.
👉 Learn more and purchase here:
https://tapnetwork.ca/lp/tech-salary-report/
Equip yourself with the compensation insights you need to compete—and lead—in Canada’s dynamic tech market.
