2-3%
Cost-of-living raise
Usually basic
This range may help with living costs, but it can still trail inflation when prices rise faster than pay.
A good raise usually starts above inflation. In 2026, a 4% to 6% raise is a solid target for strong performance, while 10% or more usually points to a promotion, market correction, or job change. See how any raise compounds over time with our annual raise calculator.
A 3% raise is close to average but may only maintain your buying power. A 5% raise is generally good because it beats recent inflation. A 10% to 20% raise is strong and usually requires a promotion-level case or a market pay adjustment.
2-3%
Usually basic
This range may help with living costs, but it can still trail inflation when prices rise faster than pay.
4-6%
Good for many roles
This is often a stronger performance raise because it can beat inflation and move your pay meaningfully higher.
10-20%+
Strong
This level usually reflects a promotion, expanded responsibility, market correction, or a new employer.
Use inflation as the floor, then compare your raise against company budgets, market pay, and your individual performance.
The BLS reported a 3.3% CPI-U increase for the 12 months ending March 2026. A raise below that can feel like a pay cut in real purchasing power.
Major compensation surveys commonly report average 2026 merit increase budgets around 3.2% and total salary increase budgets around 3.5%. Raises above that range usually need clear performance, retention, or promotion justification.
Sources: BLS Consumer Price Index and Mercer 2026 salary increase budget survey.
Merit increase budgets vary by industry. The figures below are common planning ranges based on salary survey data — actual figures depend on company size, region, and individual performance. See our 2026 salary budgets and trends page for more detail.
| Sector | Typical Position |
|---|---|
| Technology | Higher end of merit budgets |
| Finance / Banking | Above median |
| Healthcare | Near median |
| Manufacturing | Near median |
| Retail / Hospitality | At or below median |
| Non-profit / Government | Below median |
Average total salary increase budget for 2026: 3.5% (Mercer). High-cost metros may require a higher nominal raise to feel equivalent, but employer budgets vary by company and role. These are illustrative ranges.
$1,500/yr
On $50,000, that is about $57.69 per biweekly paycheck before taxes.
$2,500/yr
On $50,000, that is about $96.15 per biweekly paycheck before taxes.
$5,000/yr
On $50,000, that is about $192.31 per biweekly paycheck before taxes.
| Raise | Salary | Annual increase | Biweekly increase |
|---|---|---|---|
| 3% | $50,000 | $1,500 | $57.69 |
| 5% | $50,000 | $2,500 | $96.15 |
| 10% | $50,000 | $5,000 | $192.31 |
Enter your salary and raise percentage to see the annual, monthly, biweekly, and after-tax impact.
Your Raise
$2,500.00
+5.00% increase
New Annual Salary
$52,500.00
from $50,000.00
Per Paycheck
+$96.15
bi-weekly increase
After-Tax Increase
+$1,950.00
estimated annual take-home
Hourly
+$1.20
Before
$24.04
After
$25.24
Weekly
+$48.08
Before
$961.54
After
$1,009.62
Bi-Weekly
+$96.15
Before
$1,923.08
After
$2,019.23
Monthly
+$208.33
Before
$4,166.67
After
$4,375.00
Annual
+$2,500.00
Before
$50,000.00
After
$52,500.00
| Period | Before | After | Increase |
|---|---|---|---|
| Hourly | $24.04 | $25.24 | +$1.20 |
| Weekly | $961.54 | $1,009.62 | +$48.08 |
| Bi-Weekly | $1,923.08 | $2,019.23 | +$96.15 |
| Monthly | $4,166.67 | $4,375.00 | +$208.33 |
| Annual | $50,000.00 | $52,500.00 | +$2,500.00 |
After-Tax Impact
$43,947.00 → $45,897.00 (+$1,950.00/yr)
Est. US federal effective rate. Varies by state and deductions.
Real Raise (Inflation-Adjusted)
Your raise: 5.0% — Inflation (CPI): 3.3% → Real purchasing power change: +1.7%
Estimates are for informational and planning purposes only. They do not constitute financial, tax, or legal advice. See our disclaimer.