The benchmarks, in one place
Average Raise Percentage in 2026
A quick reference for the average raise percentage employers are budgeting in 2026, the average raise workers are actually receiving, and what counts as a good raise once inflation is subtracted.
U.S. salary increase budgets for 2026 average about 3.5%, with actual merit increases closer to 3.2%.
- 3.5% 2026 average
- BLS + WorldatWork sourced
- Updated for 2026
- Free
Where does your raise stand?
U.S. average raise, by year
| Year | Average raise budget | Note |
|---|---|---|
| 2022 | 4.1% | 20-year high at the time |
| 2023 | 4.4% | Inflation catch-up peak |
| 2024 | 3.9% | Cooling |
| 2025 | 3.7% | Cooling continues |
| 2026 | ≈3.5% | Projected, edging down |
Typical merit increase by industry (approximate)
| Industry | Typical range |
|---|---|
| Tech / engineering | 4–5% |
| Finance / insurance | 3.5–4.5% |
| Healthcare | 3–4% |
| Manufacturing | 3–3.5% |
| Retail / hospitality | 2.5–3.5% |
| Government / education | 2–3% |
How to Use This Average Raise Benchmark
The average raise percentage only matters once you compare your own number against it. Three steps turn the benchmark into a judgment call:
- Find your raise as a clean percent. If HR handed you a dollar figure instead of a percentage, run it through the raise percentage calculator first, then come back and set that number in the field above to see it measured against the 2026 average raise.
- Compare against the national average raise, not a guess. The mini tool above stacks your raise against the 3.5% average raise budget for 2026 and shows the gap in points. A raise sitting right at the average raise is not a bad outcome — it means you kept pace with what most employers planned to pay.
- Check your industry line, then check inflation. The industry table above shows that a tech raise and a retail raise are not the same average raise at all; a 3.5% raise in retail is closer to the top of its range, while the same 3.5% in tech trails the average raise for that field. Either way, subtract CPI inflation (about 3.5% as of mid-2026) to see the real, spending-power version of the number.
Worked example: say your new offer is a 4.2% raise. The average raise budget for 2026 is 3.5%, so you are 0.7 points above the average raise — a modest win, not a big one. Against CPI inflation near 3.5%, your real gain is about 0.7 points. That is still a positive outcome; with inflation running this close to the average raise, most workers this year are barely breaking even.
What "Average Raise" Actually Measures
"Average raise" gets used loosely, and the loose usage causes most of the confusion around this number. There are three related figures, and a compensation survey rarely tells you which one a headline is quoting:
- Salary increase budget — what employers plan to spend on raises across their whole workforce, expressed as a percent of total payroll. This is the figure surveys like WorldatWork's salary budget survey, Mercer, and WTW compensation planning studies report, and it is the number usually meant by "the average raise" in a news story: about 3.5% for 2026.
- Actual merit increase — what a typical employee actually receives once the budget is divided up. Actual merit increases typically land about 0.3 points below the budgeted average raise, landing near 3.2% for 2026, because some of the budget goes to promotions, adjustments, and off-cycle raises rather than the standard annual raise.
- Employment Cost Index (ECI) — the Bureau of Labor Statistics' broader measure of private wage and salary growth economy-wide, which has tracked roughly 3.4–3.8% year-over-year, with the latest reading at 3.4% for the 12 months ending March 2026. The ECI moves with the average raise but also captures job switching, new hiring, and shifts between industries.
Here is why the average raise looks small next to inflation headlines even in a year when pay is "keeping up": mid-2026 the 3.5% average raise and the 3.5% CPI figure are nearly identical, leaving roughly zero real, after-inflation gain for the typical worker. The average raise was never designed to feel large — it is a budget line, not a bonus, and it compounds slowly and predictably rather than in one dramatic jump.
Two related numbers worth knowing before you use the average raise in a negotiation: promotion raises typically run 8–15%, well above the standard average raise, because they reflect a new role rather than a cost-of-living adjustment. Job switchers, meanwhile, still out-earn stayers, though by less than the folklore suggests: ADP's mid-2026 pay data shows job-changers' pay growing about 6.6% year over year against 4.4% for stayers — a roughly two-point premium over the typical average raise path.
To use the average raise in a negotiation, anchor on the benchmark and then argue your specifics. Open with the 2026 average raise (3.5% budgeted, roughly 3.2% actually delivered) so the conversation starts from a shared, sourced number instead of a guess. Then layer in what the average raise doesn't capture: your industry's typical range, your performance relative to peers, and whether you're asking for a standard annual raise or effectively negotiating a promotion. A manager who hears "the average raise this year is 3.5% and I'm asking for 5% because of X" is negotiating against evidence, not a feeling.
Sources: BLS Employment Cost Index, BLS Consumer Price Index, WorldatWork salary budget survey, Mercer compensation planning research, and ADP Pay Insights.
More Tools
- Pay Raise Calculator — turn the average raise benchmark into your own dollar numbers, before and after tax.
- Raise Percentage Calculator — convert a dollar raise into a percent so you can compare it to the average raise above.
- Salary Increase Over Time — project the 3.5% average raise forward across several years to see where it lands your salary.
Average Raise Percentage FAQ
What is the average raise percentage for 2026?
U.S. employers are budgeting an average raise of about 3.5% for 2026, per WorldatWork, Mercer, and WTW compensation planning surveys. Actual merit increases tend to land a bit lower, closer to 3.2%, once the total budget is divided among promotions, adjustments, and standard raises.
What is a good raise percentage?
A raise at or above CPI inflation (about 3.5% as of mid-2026) holds your ground in real terms. A raise of 4–5% is above the 2026 average raise and counts as a good outcome for a standard annual cycle. Anything at 8% or higher usually signals a promotion or a job change rather than a routine average raise.
Is a 3% raise good with current inflation?
With CPI inflation near 3.5%, a 3% raise is now a small real-terms pay cut — prices are rising slightly faster than the paycheck, and it also trails the 3.5% average raise employers are budgeting. The gap is small enough that one negotiation point can flip it: countering at the average raise or a bit above is a reasonable, evidence-backed ask.
What's the average raise with a promotion?
Promotion raises typically run 8–15%, well above the standard average raise, because they reflect a change in role and responsibility rather than a cost-of-living adjustment. If your raise is tied to a title change, compare it to this range instead of the 3.5% average raise budget figure.
Do job switchers really get bigger raises?
Usually, yes — though by less than the folklore suggests. ADP's mid-2026 pay data shows job-changers' pay growing about 6.6% year over year versus 4.4% for job-stayers, a roughly two-point premium over the typical average raise path. The double-digit jumps of the 2021–22 market are no longer the norm.
How often should you get a raise?
Most companies run one annual review cycle, so a standard average raise arrives once a year, often tied to a performance review or the fiscal year budget. Off-cycle raises do happen — usually for a promotion, a retention counteroffer, or a market correction — but the yearly average raise remains the baseline most workers should expect.