Average Raise Percentage in 2026: Budgets vs. Your Raise
Compare another percentage, dollar increase or new salary with the pay raise calculator.
There is no single “average raise” that applies to every US worker. Employer surveys measure salary budgets, while an individual's increase depends on their role, employer and circumstances. For 2026 planning, the sources below reported total budgets around 3.5–3.6%; that does not establish an average or median employee award.
Verified 2026 salary budget figures
| Source and survey date | Total budget | What it measures |
|---|---|---|
| Mercer, October 2025 survey | 3.5% | More than 1,000 US organizations; projected merit budget 3.2% |
| WorldatWork, 2025–2026 survey | 3.6% | Mean projected US salary increase budget |
Mercer's release was published December 9, 2025. Its total budget includes merit, promotions, cost-of-living and other adjustments. A 3.2% merit budget and a 3.5% total budget are different measures; neither means that each employee receives those percentages. The WorldatWork report was published July 17, 2025. Survey timing and participating employers differ, so we do not combine them into a calculated national average.
Budget, award and market salary are different
A salary increase budget expresses planned changes relative to payroll. An individual award is your actual increase. A market salary is the compensation for comparable work. Consider a fictional employer with a $1 million payroll and a 3.5% budget: it has $35,000 available for eligible salary increases under that plan, but the allocation across roles can vary.
That example does not tell you whether a 3% award reflects performance, position within a salary band, hire date, a promotion, budget restrictions or a collective agreement. Ask what criteria applied before interpreting the number as a performance rating.
What the percentages mean in dollars
On $60,000, 3.2% adds $1,920, 3.5% adds $2,100 and 3.6% adds $2,160 per year before deductions. The gap between 3.5% and 3.6% is $60 a year, or about $2.31 per bi-weekly paycheck. Use the pay raise calculator to compare your own base pay and pay period.
Compare with inflation over a matching period
The BLS reported a 3.4% increase in CPI-U for the 12 months ending August 2026. At that inflation rate, a 3.5% raise produces approximately 0.10% real growth: (1.035 / 1.034 − 1) × 100. This compares a hypothetical individual raise with a national price index; it is not an estimate of the average worker's actual purchasing power.
If your last raise was eighteen months ago, a twelve-month inflation figure does not cover the full gap. Choose the matching period and consider changes in your own housing, transport and other costs. The inflation comparison calculator accepts your chosen rate.
Promotion increases need a separate comparison
Mercer's October 2025 survey projected an average 8.7% promotional increase among the employers surveyed. That is a promotion measure, not a standard merit raise or a recommended negotiating target. For a wider role, compare the proposed salary with that role's responsibilities and pay band as well as the percentage change from your old salary.
How to use this evidence in a review
- Ask whether your award is merit-only or includes another adjustment.
- Check whether the raise applies for a full year or was prorated.
- Compare like-for-like roles and locations when using market data.
- Separate base pay from bonuses, equity, pension contributions and benefits.
See how to evaluate a 3% raise and how to prepare a raise request. Figures checked October 5, 2026. This page describes identified survey results and original worked examples; it does not promise a particular pay outcome.