Quick Answer
The average salary increase in 2026 is projected at 3.8% according to HR consulting firms, though this varies significantly by industry, performance level, and job function. High performers typically see 5-7% increases, while cost-of-living adjustments average 2-4%.
Best Answer
Dr. Lisa Park, Labor Market Researcher
Best for typical salaried employees looking to understand raise expectations and benchmarks
What is the typical raise percentage for 2026?
The average salary increase for 2026 is projected at 3.8% according to major HR consulting firms like Mercer and Willis Towers Watson. However, this headline number masks significant variation based on your specific situation.
Most employers are budgeting salary increase pools of 3.5-4.2% for 2026, which represents a slight uptick from 2025's 3.5% average. This increase reflects employers' need to retain talent while managing inflation pressures that, while moderating, still affect compensation planning.
Example: How a 3.8% raise affects your paycheck
Let's say you currently earn $65,000 annually:
This assumes you're in the 22% federal tax bracket plus 7% state taxes.
Raise percentages by performance level
Raise amounts vary dramatically based on performance ratings and company policies:
Industry variations in 2026
According to Bureau of Labor Statistics data and industry surveys:
Key factors that affect your raise percentage
What you should do
1. Research your market rate using salary comparison tools and industry reports
2. Document your achievements with specific metrics and contributions
3. Time your request during performance review cycles or after completing major projects
4. Use our job offer comparison tool to evaluate whether a raise matches external opportunities
Remember that raises compound over time. A 4% annual increase means your salary grows 21.6% over five years, significantly outpacing typical 2-3% inflation.
Key takeaway: The average 2026 raise is 3.8%, but high performers can expect 5-7% while top talent in competitive industries may see 8%+ increases.
*Sources: [Bureau of Labor Statistics Employment Cost Index](https://www.bls.gov/news.release/eci.htm), [IRS Publication 15-T](https://www.irs.gov/pub/irs-pdf/p15t.pdf)*
Key Takeaway: The average 2026 raise is 3.8%, but performance level and industry matter more than averages—top performers typically see 5-7% increases.
Raise percentages by performance level and industry for 2026
| Performance Level | Typical Range | Tech Industry | Healthcare | Government |
|---|---|---|---|---|
| Top performer | 5.5-8.0% | 6.5-9.0% | 6.0-8.5% | 3.0-5.0% |
| High performer | 4.5-6.0% | 5.5-7.0% | 5.0-6.5% | 2.5-4.0% |
| Meets expectations | 2.5-4.0% | 3.5-5.0% | 3.0-4.5% | 1.5-3.0% |
| Below expectations | 0-2.0% | 0-2.5% | 0-2.0% | 0-1.5% |
More Perspectives
Marcus Rivera, Compensation & Benefits Analyst
Best for employees in their first 1-3 years of work experience
What raises look like in your first few years
As someone early in your career, your raise expectations should be different from the overall 3.8% average. Entry-level employees typically see higher percentage increases but face unique challenges.
First-year raises: Many companies have structured programs giving 5-8% increases after your first year, assuming satisfactory performance. This reflects rapid skill development and companies wanting to retain new talent they've invested in training.
Years 2-3: Expect 4-6% annual increases if you're meeting expectations. This is above average because you're still learning rapidly and taking on more responsibilities.
Example for a $45,000 starting salary:
That's a 15.7% total increase over three years—much higher than the typical 3.8% annual average.
Special considerations for early career
Promotion opportunities: Entry-level employees often get promoted within 18-24 months, which means 15-25% salary jumps rather than small annual raises.
Skill premiums: Learning high-demand skills (data analysis, project management, technical certifications) can justify 8-12% raises even early in your career.
Job switching advantage: Early-career professionals often get bigger raises by changing jobs (15-30%) rather than staying put (4-6%).
Key takeaway: Entry-level employees often outperform the 3.8% average with 5-8% first-year increases, but should focus on skill development and strategic job moves for maximum growth.
Key Takeaway: Entry-level employees typically see 5-8% raises in their first few years, outperforming the 3.8% average due to rapid skill development and retention efforts.
Marcus Rivera, Compensation & Benefits Analyst
Best for employees with family considerations affecting their compensation strategy
How family considerations affect raise expectations
As a parent or family breadwinner, your approach to raises involves more than just the base salary increase. The average 3.8% raise takes on different meaning when you consider benefits, family financial goals, and work-life balance trade-offs.
Total compensation focus: While the salary increase might be 3.8%, look at the full package. A 3% salary raise plus enhanced family health benefits or dependent care assistance can be worth much more than a 5% salary-only increase.
Family-friendly benefits that add value:
Example for a $75,000 salary with two children:
Timing considerations with family events
Raise negotiations become more complex with family milestones:
Long-term family financial planning: A 4% annual raise compounds to help with future college costs. On a $75,000 salary, consistent 4% raises mean earning $91,100 in year five—an extra $80,000+ over five years for education savings.
Key takeaway: For families, focus on total compensation value rather than just the 3.8% salary average—benefits improvements can be worth more than cash raises.
Key Takeaway: Parents should evaluate total compensation, not just the 3.8% salary average, as family benefits can add $3,000-$8,000 in annual value beyond base pay increases.
Sources
- Bureau of Labor Statistics Employment Cost Index — Quarterly data on wage and salary changes across industries
- IRS Publication 15-T — Federal Income Tax Withholding Methods for payroll calculations
Related Questions
Reviewed by Dr. Lisa Park, Labor Market Researcher on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.