Many Canadian organizations lowered their projections for 2015 salary increases, according to The Conference Board of Canada’s Mid-Year Pulse Check of its annual compensation planning outlook survey. The average base salary increase for non-unionized workers is now expected to be 2.7%, down from the projected 2.9% in the summer of 2014.

Continued reductions to projected pay increases in the energy sector are expected.

“Many organizations are waiting to see how the economy fares before finalizing plans,” said Ian Cullwick, VP, leadership and human resources research. “It is likely that we will see further reductions in salary increases, including pay freezes, from organizations in Alberta and Saskatchewan. Energy companies are scaling back on their capital investments, and this is affecting contingent workforce needs and pay decisions.”

Organizations in the retail and wholesale trade sectors expect the lowest increases at 2.3%, followed by education, health and communications both at 2.4%. With the exception of the communications and telecommunications sector, all industries are at or below their summer projections.

Less than half of respondents have finalized their projected 2015 pay plans.

The 2015 Mid-Year Pulse Check survey was sent out in December to all 382 organizations that responded to The Conference Board of Canada’s Compensation Planning Outlook 2015 survey conducted over the summer of 2014. A total of 228 organizations replied to the mid-year survey.