Average Raise Percentage in 2026
US employers planned about a 3.5% average total salary increase for 2026. See what counts as normal, how inflation changes the real value, and where your raise ranks by performance tier.
Quick answer
The average raise percentage for 2026 is about 3% to 4%
The clearest planning benchmark is 3.5%: Mercer reported that US employers planned average total salary increase budgets of 3.5% for 2026. A raise below 3.4% may lag inflation, while 5% or more is generally above average.
What Is the Expected Raise for 2026?
US employers planned an average 3.5% total salary increase for 2026, according to Mercer's compensation survey. This is roughly flat compared to 2025 budgets and reflects employer caution amid economic uncertainty.
“Expected” is not the same as “approved.” Companies set merit budgets in Q4 of the prior year, but individual raises depend on your performance rating, your manager's allocation, and whether the company adjusts budgets mid-year based on revenue. If you have not received your 2026 raise yet, ask your manager for the timeline.
The 3.5% figure is an average planned employer budget, not an individual performance scale. Your result may differ based on company policy, role, pay-band position, and the type of adjustment. See what counts as a good raise for context on where your raise ranks.
What Is the Average Raise Percentage?
The average raise percentage in the US is about best described using employer budget data rather than assuming what most workers receive. For 2026, Mercer reported an average total salary-increase budget of 3.5% (Mercer). To grow your real pay a raise has to clear the 3.4% headline inflation rate before tax.
What percent raise is normal?
A normal raise at least keeps pace with inflation. With CPI-U at 3.4% (July 2026), a raise that keeps pace with that headline measure is about 3.4%. Mercer's separate planned-budget benchmarks were 3.2% for merit and 3.5% for total salary increases. A raise below 3.4% means your real pay is quietly shrinking — so a 3% raise actually trails inflation slightly. See the current US inflation rate for the figure your raise has to beat.
These are broad averages — your “normal” depends on performance tier, industry, and region, all covered below. To see exactly where a specific number ranks, use the good raise percentage guide. Employer budget surveys measure planned allocations, while the BLS Employment Cost Index measures actual changes in labor costs; they answer related but different questions.
How Inflation Affects Your 2026 Raise
The BLS reported a 3.4% CPI-U increase for the 12 months ending July 2026. This is the inflation rate your raise needs to beat for you to gain real purchasing power.
Real raise = (1 + nominal raise) ÷ (1 + inflation) − 1
3.5%
Average planned total salary budget (Mercer)
3.4%
CPI-U inflation (BLS)
0.1%
Real purchasing power gain
A 3.5% raise on $60,000 = $2,100/year. After adjusting for 3.4% inflation, the real gain is about $58/year. For a raise that meaningfully grows your purchasing power, you need to beat 3.4%.
For a deeper look at how inflation interacts with raises, see our guide on COLA vs merit raises.
Employer and Role Differences
Merit budgets vary by employer, industry, location, job family, and company performance. Mercer's public 2026 release supports the overall US averages used here, but does not provide a sector ranking. Use role-matched survey data or an employer pay band for a more specific comparison.
Source: average 2026 US merit-increase budget 3.2% and total salary-increase budget 3.5% (Mercer 2026). Company-level and role-level outcomes can differ.
Salary-budget surveys describe what employers planned to allocate. The BLS Employment Cost Index describes actual wage and compensation changes across the economy, so the two figures should not be treated as interchangeable.
How Performance Can Affect an Individual Raise
Employers may differentiate individual increases by performance, but the size and structure of that differentiation vary. The cited Mercer release does not publish universal raise ranges for performance tiers.
- Ask whether performance ratings affect pay and how the rating is defined.
- Check your position within the employer's salary band for the role.
- Separate a routine merit increase from a promotion or market adjustment.
- Use the employer's written policy or actual offer instead of a generic tier table.
If you want to know where a specific percentage lands, see our good raise percentage guide or use the annual raise calculator to project how your raise compounds over time.
Calculate Your 2026 Raise
Enter your current salary and raise percentage to see the impact across all pay periods, including an after-tax estimate.
Your Salary
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
+$2,008.75
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
$42,355.00 → $44,363.75 (+$2,008.75/yr)
Est. US federal income tax + FICA (single filer). Varies by state, filing status, and deductions.
Real Raise (Inflation-Adjusted)
Your raise: 5.0% — Inflation (CPI): 3.4% → Real purchasing power change: +1.5%
Estimates are for informational and planning purposes only. They do not constitute financial, tax, or legal advice. See our disclaimer.
2026 Raise Trends Questions
- What is the average raise percentage?
- For 2026, Mercer reported average planned US merit-increase budgets of 3.2% and total salary-increase budgets of 3.5%. These are employer budget averages, not the average raise received by every worker. Individual results vary by employer, role, and pay decision.
- What percent raise is normal?
- Use separate benchmarks: Mercer reported 3.2% average planned merit budgets and 3.5% total salary-increase budgets for 2026, while CPI-U was 3.4% for July 2026. A raise below 3.4% trails that headline inflation measure before tax.
- What is the expected raise for 2026?
- US employers planned average total salary increases of 3.5% for 2026, according to Mercer’s compensation survey. This includes merit increases and other adjustments. It is an employer-level budget benchmark, not a forecast for a particular employee.
- Is the salary increase for 2026 approved?
- Whether your 2026 raise is “approved” depends on your employer's own compensation calendar and policy. If you have not received a decision, ask your manager or HR team about the applicable review and effective-date timeline.
- What is the salary increase percentage for 2026?
- Mercer reported a 3.5% average total salary-increase budget and a 3.2% average merit-increase budget for US employers in 2026. The cited release does not establish a universal sector ranking, and company-level budgets vary.
- What is the average increase for 2026?
- The BLS Employment Cost Index measures actual changes in labor costs, while Mercer's survey reports planned employer salary budgets. Mercer reported 3.2% average merit budgets and 3.5% total salary-increase budgets for 2026; neither figure predicts one employee's raise.