Average Raise Percentage in 2026: What to Expect
By Raise Calculator Editorial Team
Published April 14, 2026
When review season arrives, the most common question employees have is straightforward: how does my raise compare to everyone else's? Understanding average raise percentages helps you set realistic expectations and evaluate whether an offer reflects your performance or simply keeps pace with the broader market.
National Averages: What the Data Shows
The U.S. Bureau of Labor Statistics (BLS) publishes the Employment Cost Index (ECI) quarterly, measuring changes in total compensation for civilian workers. According to BLS ECI data, wages and salaries for private industry workers have commonly increased in the range of 3% to 5% year-over-year in recent years. These figures represent broad averages across all occupations and industries.
Separately, major compensation consulting firms publish annual salary budget surveys. These surveys commonly report planned merit increase budgets in the range of 3.5% to 4.5% for a given year. Keep in mind that planned budgets may differ from actual awarded raises once performance differentiation is applied.
Raises by Performance Tier
Most organizations differentiate raises by performance rating. While exact percentages vary by company, the general structure commonly reported in compensation surveys follows a pattern like this:
| Performance Rating | Commonly Reported Range | Context |
|---|---|---|
| Below expectations | 0%–1% | May receive no raise or a minimal adjustment |
| Meets expectations | 2.5%–3.5% | Roughly keeps pace with typical cost-of-living increases |
| Exceeds expectations | 4%–6% | Reflects above-average contribution |
| Top performer | 6%–10%+ | Often combined with bonuses or promotions |
These ranges are illustrative and based on patterns commonly reported in compensation surveys. Your employer's specific budget and differentiation philosophy may produce different numbers.
Industry Variation
Not all industries move at the same pace. Sectors with high demand for specialized skills (technology, healthcare, energy) have historically offered above-average raises, while industries with tighter margins or slower growth (retail, hospitality, nonprofit) tend to stay closer to or below the national median. BLS ECI data breaks down compensation changes by industry group if you want to benchmark your specific sector.
Geographic location also matters. Workers in high-cost metro areas may receive larger nominal raises that still feel insufficient relative to local cost of living, while workers in lower-cost areas may receive smaller nominal raises that stretch further.
The Inflation Factor
A raise that matches or slightly exceeds inflation keeps your purchasing power stable. A raise below the inflation rate means you can afford less than the previous year, even though your nominal salary increased. The Consumer Price Index (CPI), published monthly by the BLS, is the most common inflation benchmark. When evaluating your raise, subtract the trailing 12-month CPI change to see your “real” raise.
For example, if you received a 4% raise and CPI increased 3.2% over the same period, your real purchasing power gain is approximately 0.8%. Use the annual raise tracker to project how different raise percentages compound over multiple years when accounting for inflation.
How to Compare Your Raise
To evaluate whether your raise is competitive:
- Check BLS ECI data for your industry and occupation group.
- Look at salary budget surveys from consulting firms for planned increase ranges.
- Subtract the trailing CPI rate to calculate your real (inflation-adjusted) raise.
- Consider your performance rating tier and where your raise falls within the expected range.
- Factor in total compensation changes (bonuses, equity, benefits) beyond base salary.
Use the good raise percentage guide for additional context on what constitutes a strong raise in various scenarios, or the pay raise calculator to see exactly how a given percentage translates to your new salary and per-paycheck amounts.
Sources and Notes
- U.S. Bureau of Labor Statistics — Employment Cost Index (ECI), published quarterly at bls.gov/eci
- Major compensation surveys (as commonly reported by WorldatWork, Mercer, WTW) — annual publications on planned merit increase budgets
- U.S. Bureau of Labor Statistics — Consumer Price Index (CPI), published monthly at bls.gov/cpi
- Ranges cited are commonly reported patterns and may not reflect your specific employer or year. Verify current figures before making decisions.