Baker Tilly has released its 2025 Construction Industry Salary Report, showing wage growth slowed across all participating regions this year. The annual survey includes data from construction firms of varying sizes and sectors and is used by contractors to benchmark compensation practices.
The report, the first issued since Baker Tilly’s combination with Moss Adams, found cost-of-living–based compensation adjustments dropped 7% from last year. Even so, companies project stronger wage growth in 2026, along with increased use of merit pay and cash incentives, signaling expectations for higher workload and labor demand.
“Many companies are taking a more cautious approach to compensation amid market uncertainty,” said Brian Kassalen, principal and construction industry leader at Baker Tilly.
The report reviews compensation trends for executives and jobsite roles, wage growth by region and sector, and strategies for attracting and retaining employees. New this year are expanded insights into bonus pool structures, insurance and 401(k) matching and incentive programs.
Key findings include:
- 79% of surveyed companies offer paid holidays to all employees, down 7% from 2024.
- 58% use cost-of-living adjustments, a 3% decline from last year.
- Companies project 3–4% wage growth in 2026.
- 65% reported no changes to salary strategies this year.
- Average salary for construction managers: $151,202.
- Average salary for construction laborers: $63,318, rising to $74,283 in California’s Greater Bay Area.
Baker Tilly leaders said the firm’s expanded footprint will enable deeper compensation insights in future editions of the report.
