Canada’s technology sector is holding steady in 2025, according to a new report from the Tech + People Network.
Organizations this year are reporting median salary increases of 3.5%, finds the annual Tech Sector Salary and Total Rewards Survey, amid “continued widespread adoption of remote and hybrid work.”
Despite “headline-making return to office mandates at large multinationals such as Amazon and Dell Technologies,” TAP Network’s chief executive officer Stephanie Hollingshead believes that “Remote work is alive and well in Canada’s tech sector.”
The sector has endured headwinds, such as inflation and other economic turmoil negatively impacting the cost of living nationwide.
But the data pulled by TAP suggests a measure of “resilience,” with firms “maintaining competitive compensation while continuing to prioritize flexibility and innovation.”
The biggest aspect of flexibility in 2025 is a company’s work model.
While fully remote ops peaked in popularity during the Covid era, full returns to office remain scarce, although the threat quietly lingers for many. The happy medium for most is a hybrid model, which can look different for each individual organization—and, often, for each individual within an organization.
According to TAP, more than 70% of organizations are operating on hybrid work models—by far the most common choice for tech workforces. About one quarter of firms are currently fully remote, with fewer than 3% being fully in-office.
“Organizations that succeed will be those that thoughtfully combine competitive compensation with meaningful benefits and flexible work arrangements,” Hollingshead posits.
Subsections on the rise include financial technology and manufacturing, with certain roles like product marketing manager and data scientist enjoying above-average raises at over 7%.
Turnover is down to 8% from a peak of 13% three years ago, according to the report.
Overall, the survey “signals cautious optimism” for next year. Organizations forecast expanding workforces by an average of 13% with salary increase budgets averaging 3.6%.
“These findings suggest the tech sector is finding its equilibrium after years of rapid growth and adjustment,” said Hollingshead.
The themes of the Tech Sector Salary and Total Rewards Survey will be explored further at Tech Talent North 2025 in Vancouver on October 29th.
The event will bring together senior People & Culture leaders to share insights and connect with peers.
