News Summary

The Canadian tech sector is experiencing a slowdown in salary growth, with median salary increases reported at 3.5% year-over-year in 2025, down from 3.8% in 2024 and a significant decline from the 7.5% increase in 2023. This represents the second consecutive year of slowing salary growth, aligning with persistent inflation pressures. Despite these challenges, the tech industry is finding equilibrium following years of rapid expansion and adjustment. The Tap Network’s annual Tech Sector Salary and Total Rewards Survey indicates that the fintech and hardware sectors are leading with higher median salary increases of 5.8% and 5.0%, respectively. The report also highlights a trend towards hybrid work arrangements, with over 71% of companies adopting this model. Looking forward to 2026, Canadian tech organizations are forecasting an average headcount growth of 13% and salary increase budgets of 3.6%. These findings underscore a cautious yet optimistic outlook for the sector as it navigates economic uncertainties and leverages its strong AI expertise for growth.