2026 raise benchmark

What Is a Good Raise Percentage?

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.

Quick answer

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%

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.

4-6%

Solid merit raise

Good for many roles

This is often a stronger performance raise because it can beat inflation and move your pay meaningfully higher.

10-20%+

Promotion or job-change raise

Strong

This level usually reflects a promotion, expanded responsibility, market correction, or a new employer.

Benchmarks

How to judge a 2026 raise

Use inflation as the floor, then compare your raise against company budgets, market pay, and your individual performance.

Inflation floor: 3.3%

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.

Employer budget context: about 3% to 4%

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.

By industry

Illustrative Raise Ranges by Sector

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.

SectorTypical Position
TechnologyHigher end of merit budgets
Finance / BankingAbove median
HealthcareNear median
ManufacturingNear median
Retail / HospitalityAt or below median
Non-profit / GovernmentBelow 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.

Examples

What common raises are worth

See the full salary table

3% raise

$1,500/yr

On $50,000, that is about $57.69 per biweekly paycheck before taxes.

5% raise

$2,500/yr

On $50,000, that is about $96.15 per biweekly paycheck before taxes.

10% raise

$5,000/yr

On $50,000, that is about $192.31 per biweekly paycheck before taxes.

Calculate your raise

Enter your salary and raise percentage to see the annual, monthly, biweekly, and after-tax impact.

Your Salary

$
%
Quick:
📈 Above Average Raise (+5.00%) Beats inflation by 1.7%(CPI 3.3%)

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

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.

FAQ

Good Raise Percentage Questions

Is a 3% raise good in 2026?
A 3% raise is average, but it is slightly below the 3.3% CPI-U inflation rate for the 12 months ending March 2026. It may not fully protect your purchasing power.
Is a 5% raise good?
A 5% raise is generally a good raise because it is above recent inflation and above a basic cost-of-living adjustment. On a $50,000 salary, it adds $2,500 per year before taxes.
What raise percentage should I ask for?
Use inflation, your performance, market pay, and your added responsibilities as anchors. A 4% to 6% request can be reasonable for strong performance, while 10% or more usually needs promotion-level justification.
Is a 3.5% raise good in 2026?
A 3.5% raise in 2026 roughly matches the 3.3% CPI-U inflation rate (BLS, March 2026), giving you modest real income growth of about 0.2%. It is at the average of what US employers budgeted for total salary increases (Mercer 2026). Whether it is good depends on your performance — for average performers it is standard, for top performers it should be higher.
Is a 4.7% raise good?
A 4.7% raise is above average — it exceeds both the 3.3% CPI inflation rate and the typical employer merit budget. It places you in the upper range of merit raises, typically reserved for employees rated as exceeding expectations. On a $60,000 salary, 4.7% adds $2,820 per year or about $108 per biweekly paycheck before taxes.
Is a 7% yearly raise good?
A 7% annual raise is excellent — it roughly doubles the median merit increase budget and is typically reserved for top performers, promotions, or high-demand roles. At 7% compounded, your salary doubles in about 10 years. This level of increase usually signals that your employer considers you difficult to replace.
What is a reasonable 1-year raise?
In 2026, a reasonable raise is one that at minimum matches inflation (3.3% CPI-U) and ideally reflects your performance: 3-3.5% for meeting expectations, 4-6% for exceeding expectations, and 7%+ for top performers or promotions. What counts as reasonable also depends on your industry and region.