Are Employers Required to Give Yearly Raises in Alberta?
No — in Alberta, employers are not legally required to give annual pay raises under the Employment Standards Code. Salary increases are entirely at the employer’s discretion unless a raise is explicitly guaranteed in your employment contract or your current pay falls below a newly increased minimum wage. While most Alberta companies are budgeting a 3.3% salary increase for 2026, there is no statutory “cost of living” requirement for non-unionized workers.
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Are Annual Raises Mandatory By Law?
For the vast majority of non-unionized employees in Alberta, annual raises are not mandatory.
- Employer Discretion: Your boss has the legal right to keep your salary the same for years, provided they are still paying at least the minimum wage.
- Performance vs. Right: While “merit increases” are standard in many Calgary and Edmonton offices to retain talent, they are a business practice, not a legal obligation.
- Discriminatory Exclusions: While an employer can choose not to give a raise, they can’t base that decision on discriminatory factors such as race, sex, age, or disability. If you were denied a raise specifically because of a maternity leave or a disability accommodation, this may violate the Alberta Human Rights Act.
Are Cost of Living Raises Required in Alberta?
In 2026, many employees are asking: “Are cost of living raises required by law?“
The Answer is No: There is no law in Alberta that requires an employer to adjust your salary to match inflation or the Consumer Price Index (CPI).
Is It Illegal to Promise a Raise and Not Give It?
This is a complex area of contract law.
- Verbal Promises: If a manager verbally promises a raise but never delivers, it can be difficult to enforce without a paper trail.
- Contractual Commitments: If you have a signed offer letter or an email confirming a specific raise on a specific date, that promise may be legally binding.
- Breach of Contract: If an employer fails to honour a written salary increase, it could be considered a breach of your employment agreement. If you were promised a raise and never got it, you should have an employment lawyer review your correspondence to see if the money is legally owed.
If Minimum Wage Goes Up, Do I Get a Raise?
In 2026, the Alberta minimum wage remains $15.00 per hour (and $13.00 for certain students).
- Automatic Increase: If the government increases the minimum wage and you currently earn less than the new rate, your employer must give you a raise to the new legal floor.
- “The Ripple Effect”: Employers are not required to give “proportional raises” to staff who already earn above the minimum wage. If you earn $25.00 per hour and the minimum wage increases by $1.00, you are not legally entitled to $26.00 per hour.
Can an Employer Take Away a Raise?
No — your employer can’t unilaterally slash your pay.
Consent Required: Once a raise is given, it becomes a fundamental term of your employment. An employer can’t reduce your wages without your written agreement or a valid clause in your contract.
- Constructive Dismissal: A significant, unwanted pay cut (usually 15-20% or more) is treated as a “disguised firing” or constructive dismissal in Alberta.
- Your Rights: If your salary was reduced without your consent, you may be able to quit and pursue your full severance pay as if you were fired without cause.
How To Ask For a Pay Raise in 2026?
Since raises are discretionary, the burden is on the employee to advocate for themselves.
- Market Research: Note that Alberta employers are averaging 3.3% increases this year; use this as a benchmark.
- Document Your Value: Bring evidence of how you have saved the company money or increased revenue.
- Negotiate Your Contract: The best time to secure a raise is during a performance review or when taking on new responsibilities. Ask for the increase to be put in writing to ensure it is enforceable.
Fired After Asking For a Raise? Your Rights
It may seem unethical, but employers in Alberta are legally permitted to fire non-unionized workers shortly after they ask for a raise. This is typically classified as a termination without cause. As long as the dismissal isn’t discriminatory (e.g., based on age, gender, or disability), companies are within their legal rights to let you go for any reason.
However, your rights to compensation remain fully protected:
- Full Severance is Mandatory: Because this is a termination without cause, you are entitled to a full severance package. In Alberta, this can be up to 24 months’ pay, calculated based on your age, length of service, and position.
- “For Cause” is a High Bar: It is highly unlikely that asking for a raise would justify a “for cause” termination — the “harshest punishment” an employer can use. This is reserved for serious offences like theft, assault, or blatant disobedience.
- The Burden of Proof: To deny you severance (firing for cause), your company must prove that a lesser penalty wasn’t suitable and that progressive disciplinary measures were applied. Firing someone just for wanting a higher salary does not meet this standard and constitutes wrongful dismissal in Alberta.
- EI Benefits: A termination without cause ensures you maintain access to Employment Insurance (EI) benefits, whereas a valid “for cause” termination would block your access to this support.
The Alberta employment lawyers at Samfiru Tumarkin LLP have helped thousands of Canadians with their workplace issues — we will review your case to ensure your rights are protected and you receive the compensation you deserve.