What Is the Average Pay Raise in 2026?
The average pay raise in the United States in 2026 is 3.5% to 4.5%, according to data from the Bureau of Labor Statistics and salary surveys from Payscale and WorldatWork. This is slightly above the inflation rate of approximately 2.5-3%, meaning most workers are seeing real income growth.
Average Pay Raise by Industry
| Industry | Average Raise | Notes |
|---|---|---|
| Technology | 4-6% | Highest due to talent demand |
| Healthcare | 3-5% | Nursing shortages drive raises |
| Finance | 3-5% | Bonuses often supplement raises |
| Manufacturing | 3-4% | Skilled trades in high demand |
| Professional Services | 3-5% | Consulting, legal, accounting |
| Retail | 2-4% | Minimum wage increases help |
| Education | 2-3% | Budget constraints limit raises |
| Government | 2-4% | Varies by state and federal |
| Nonprofit | 2-3% | Limited funding |
Average Pay Raise by Experience Level
| Experience Level | Average Raise |
|---|---|
| Entry-level (0-2 years) | 3-5% |
| Mid-level (3-7 years) | 3-5% |
| Senior (8-15 years) | 3-4% |
| Executive (15+ years) | 4-8% |
| Job change (any level) | 10-20% |
The biggest "raises" typically come from switching jobs. The average salary increase when changing employers is 10-20%, compared to 3-5% for staying at the same company.
Cost of Living Adjustment (COLA) vs. Merit Raise
- COLA (2-3%): Keeps up with inflation. Not a reward for performance — everyone gets it.
- Merit raise (3-5%): Based on performance reviews. Rewards good work.
- Promotion raise (10-20%): When you move to a higher role with more responsibility.
- Market adjustment (5-15%): When your salary is below market rate for your role.
How to Get an Above-Average Raise
- Know your market rate — Use Payscale, Glassdoor, and LinkedIn Salary
- Document impact — "I increased revenue by $50K" beats "I worked hard"
- Ask at the right time — After a big win, during budget season, or when the company is growing
- Negotiate the full package — If salary is capped, ask for bonus, equity, remote work, or extra PTO
Use our Pay Raise Calculator to see how different raise percentages affect your take-home pay.
Frequently Asked Questions
Is a 3% raise good in 2026?
A 3% raise is average — it roughly keeps up with inflation. To grow your real income, aim for 4-5% or higher.
What is a normal annual raise?
3-5% is normal in the US. Merit raises are typically 3-5%, while cost-of-living adjustments are 2-3%.
Should I accept a 2% raise?
A 2% raise barely covers inflation. If your performance is strong, negotiate for 4-5% or consider exploring other opportunities where you can get a 10-20% increase.