Average Salary Increase Per Year: 2024–2026 Data, and What 10 Years of Raises Adds Up To
Bureau of Labor Statistics wage-growth data year by year, plus a compounding table showing what a steady raise is worth over a career.
The Average Salary Increase Per Year, According to BLS Data
U.S. private-industry wages and salaries grew 3.1% to 3.4% year-over-year through the first half of 2026, according to the Bureau of Labor Statistics' Employment Cost Index (ECI) — the government's own measure of actual wage growth, distinct from the employer-budget survey numbers used elsewhere on this site. After adjusting for inflation, real wage growth was close to flat: +0.1% for the year ending March 2026, then −0.4% for the year ending June 2026 — meaning pay grew, but by roughly the same amount prices did.
- BLS ECI wage growth (private industry, 12-month, not seasonally adjusted): 3.3% (Dec 2025), 3.4% (Mar 2026), 3.1% (Jun 2026).
- This is a different measure than employer-budget survey averages (Mercer, WTW) covered in our raise-percentage guide — ECI tracks what was actually paid across the whole economy, not what companies planned to budget.
- Inflation-adjusted wage growth has been close to zero for most of 2026 — nominal raises are largely being absorbed by rising prices rather than translating into real gains.
- Because raises compound, even a modest steady raise rate produces a large gap over a career — a 3.5% raise every year for 20 years roughly doubles a starting salary.
Model your own raise — including the compounding effect over 10, 20, or more years — against your expected inflation rate.
Project your own raise over timeWage Growth by Period (2025–2026)
| Period Ending | Nominal Wage Growth (YoY) | Inflation-Adjusted (Real) Growth |
|---|---|---|
| December 2025 | 3.3% | +0.7% |
| March 2026 | 3.4% | +0.1% |
| June 2026 | 3.1% | −0.4% |
The gap between nominal wage growth and inflation-adjusted growth widened through the first half of 2026 — real wages actually fell 0.4% for the year ending June 2026, despite a 3.1% nominal raise. This is exactly the scenario the "is my raise keeping up with inflation" question is designed to catch: the paycheck number went up, purchasing power didn't.
What a Steady Raise Is Worth Over 5, 10, 20, and 30 Years
A single year's raise percentage tells you almost nothing about your long-run trajectory — what matters is how a raise rate compounds. Starting from a $60,000 salary, here's what different steady annual raise rates produce over time (all figures rounded to the nearest hundred):
| Annual Raise Rate | After 5 Years | After 10 Years | After 20 Years | After 30 Years |
|---|---|---|---|---|
| 3.0% (below the 2026 average) | $69,600 | $80,600 | $108,400 | $145,700 |
| 3.5% (roughly the 2026 average) | $71,300 | $84,700 | $119,600 | $168,800 |
| 5.0% (top-quartile raises) | $76,600 | $97,700 | $159,200 | $259,300 |
The gap between 3% and 5% looks small in any single year — 2 percentage points — but compounds to a $113,600 difference in salary after 30 years, and a much larger gap in cumulative lifetime earnings once you add up every year in between. This is the mechanical reason career advice consistently emphasizes negotiating early and often: a raise that lands below average doesn't just cost you that year's difference, it lowers the base every future raise compounds from.
See this same compounding math applied to your actual salary and raise rate, with the after-tax and inflation-adjusted numbers included.
Run your own numbers- 1Employment Cost Index News Release — U.S. Bureau of Labor Statistics, June 2026, released July 31, 2026
- 2Compensation costs for private industry workers up 3.4 percent over the year ending March 2026 — BLS, The Economics Daily, 2026
Frequently Asked Questions
What is the average salary increase per year in the US?
Based on BLS Employment Cost Index data, private-industry wages grew 3.1% to 3.4% year-over-year through the first half of 2026. This tracks actual wages paid across the economy, and differs slightly from employer-budget survey figures (Mercer, WTW), which run in a similar 3.4-3.5% range for total increases.
Are wages keeping up with inflation in 2026?
Barely, and inconsistently. BLS data shows inflation-adjusted (real) wage growth of +0.1% for the year ending March 2026, then -0.4% for the year ending June 2026 — meaning real wages slipped even as nominal pay kept rising.
How much does a 3.5% raise add up to over 10 years?
Starting from a $60,000 salary, a steady 3.5% annual raise compounds to roughly $84,700 after 10 years. The compounding effect means the later years contribute more growth than the earlier ones, since each raise is calculated on an already-larger base.
What's the difference between ECI and salary budget survey data?
The Employment Cost Index (BLS) measures what employers actually paid across the whole economy, sampled directly from payroll records. Salary budget surveys (Mercer, WTW, WorldatWork) ask HR leaders what they plan to budget or actually spent on raises at their own companies. The two usually track closely but aren't identical measures.
Frequently asked questions
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