What Is a Good Raise Percentage in 2026? (With Real Survey Data)
Employer survey data from Mercer, WTW, and WorldatWork, broken down by performance tier and promotion type, so you know whether your raise is below, at, or above market.
What Counts as a Good Raise in 2026
A raise around 3.5% matches the 2026 national average — you're keeping pace with typical employer budgets, not falling behind or pulling ahead. A raise of 5% or more puts you in the top quartile of individual outcomes. Anything at or below 2% is below the median and, in most years, below inflation — meaning your purchasing power is shrinking even though the number on your payslip went up.
- The average U.S. merit increase for 2026 is 3.1–3.2% of base pay, per Mercer's most recent (April 2026) survey of 756 employers.
- The average total increase — merit plus promotions, cost-of-living adjustments, and other bumps — is 3.4–3.5% across the major 2026 surveys (Mercer, WTW, WorldatWork, Payscale).
- A one-level promotion carries an average raise of about 8.5%, roughly 2.5× a standard merit increase.
- Top-performer raises (5-tier rating systems) run around 5.6%, versus 3.3% for employees rated in the middle.
- 2026 budgets are essentially flat versus 2025 — the third straight year of stabilization after the sharp post-pandemic increases of 2021–2023.
Plug in your own raise and see the after-tax value, the inflation-adjusted real raise, and what it's worth compounded over your career.
Calculate your raise2026 Raise Benchmarks by Type
"Average raise" hides a lot of variation depending on why you're getting one. Here's how the major categories compare, based on the most recent 2026 employer survey data:
| Raise Type | 2026 Average | What It Means |
|---|---|---|
| Standard merit increase | 3.1% – 3.2% | Annual performance-based raise for an average-rated employee |
| Total increase (all types blended) | 3.4% – 3.5% | Merit + promotions + cost-of-living + other adjustments, company-wide |
| Top-performer merit increase | ~5.6% | Highest tier on a typical 5-point performance scale |
| Middle-performer merit increase | ~3.3% | Employees rated as meeting expectations |
| One-level promotion | ~8.5% | Raise awarded alongside a title/level change |
| Job-change raise (new employer) | 10%+ | Median bump reported when switching companies rather than staying put; varies widely by role and market |
A "merit increase" is the performance-based raise tied to your review. A "total increase" also folds in promotions, cost-of-living adjustments, and market corrections across the whole company. When you see a headline number like "3.5% average raise," check which one it is — the merit number is usually smaller, since it excludes promotions and one-off adjustments.
How to Tell If Your Specific Raise Is Good
A single benchmark number doesn't answer the question by itself — context matters more than the raw percentage:
Compare it to inflation first
A 3% raise sounds fine until you check it against the inflation rate for the same period. If prices rose 3% too, your real (purchasing-power) raise is close to zero — you're earning the same number of goods and services as before, just with a bigger paycheck number. A raise below inflation is a pay cut you won't notice until your budget tightens.
Compare it to your performance tier, not the company average
If your company gave a company-wide average of 3.5% but you were rated as a top performer, a raise anywhere near that average is below what similar high performers received elsewhere (typically 5%+). Conversely, if you're in a role the company is actively trying to retain — skilled trades and technical/AI-adjacent roles have shown above-average wage growth in 2026 — a below-average raise is a weaker signal than it looks.
Compare it to what a job change would pay
Raises from staying in place have consistently lagged the pay bump associated with changing employers. If your raise is well under 5% and you're several years into the role, it's worth benchmarking your market rate before assuming your current raise reflects it.
See exactly what your raise is worth after federal tax, state tax, and FICA — and whether it beats your expected inflation rate.
Check your raise against inflationWhy 2026 Raises Are Flat Compared to 2021–2023
If your raise feels smaller than a few years ago, that's not just perception. Salary increase budgets spiked during 2021–2023 amid a historically tight labor market, then began a gradual pullback that has now stabilized. 2026 marks the third consecutive year of relatively flat budgets — most surveyed employers report 2026 merit and total budgets essentially matching 2025's actual spend, rather than growing.
The most-cited reasons employers give for holding budgets flat: general economic uncertainty, a labor market that has cooled from its post-pandemic tightness, and a shift toward targeted rather than across-the-board raises — directing more budget toward specific high-demand skills instead of spreading it evenly. Notably, most employers still say they distribute raises roughly equally despite stating that priority, which surveyors have flagged as a disconnect between stated strategy and actual practice.
- 1Mercer QuickPulse U.S. Compensation Planning Survey — Mercer / HR Dive, reported December 2025 & May 2026
- 22026 Salary Budget Survey — WorldatWork, 2025-2026
- 3Employer Salary Increase Predictions for 2026 — SHRM, 2025
- 4Salary Budget Survey (SBS) 2026-2027 — Payscale, 2026
Frequently Asked Questions
Is a 3% raise good in 2026?
It's close to the national average — 2026 merit increase budgets run about 3.1–3.2%, and total increases (including promotions and cost-of-living adjustments) average 3.4–3.5%. A 3% raise is roughly in line with the market, neither notably strong nor weak, though whether it's "good" for you specifically depends on how it compares to inflation over the same period.
Is a 5% raise good?
Yes — a 5% raise is meaningfully above the 2026 national average of 3.4–3.5% and lands close to what top-performer merit increases typically pay (around 5.6% on a standard five-tier rating scale). It's a strong outcome for a standard annual review, though below what a promotion (~8.5% average) or a job change typically pays.
What is a typical raise for a promotion?
Around 8.5% on average in 2026, according to Mercer's most recent compensation survey — roughly two and a half times a standard merit increase. This can vary substantially by how many levels the promotion spans and by industry.
Is a 2% raise bad?
A 2% raise is below the 2026 national average of 3.4–3.5%, and in most years it falls short of the inflation rate — meaning your purchasing power likely declined even though your paycheck grew. It's not unusual for a "meets expectations" employee in a flat-budget year, but it's below what most surveys report as the typical outcome.
How much more do you make changing jobs vs staying?
Raises for employees who switch employers have historically outpaced raises for those who stay in the same role, often by a wide margin. Staying-put raises are capped by a company's annual budget cycle (averaging 3.4–3.5% in 2026); a job change resets your pay to current market rates, which can produce a much larger jump, though this varies significantly by role, industry, and local labor market conditions.
Frequently asked questions
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