What's the Average Raise Percentage in 2026?

Quick answer: The average raise percentage in the US in 2026 is approximately 3.8% of base salary, according to salary budget surveys from Mercer, WTW (Willis Towers Watson), and Aon. That is the company-wide average. Your individual raise depends heavily on context: a satisfactory performer typically gets 3.0-3.5%, a strong performer 4.5-6%, and a top performer 6-10%+. With 2026 inflation running near 3%, a 3.8% raise is only about 0.8% in real (inflation-adjusted) terms. So "average" and "good" are not the same thing — a raise can be perfectly average and still leave your purchasing power nearly flat.

If your manager just told you the raise number and you're trying to figure out whether it's good, bad, or normal, the honest answer is: the average alone won't tell you. A 4% raise is great for someone rated "meets expectations" in retail and disappointing for a top performer in software. This guide gives you the real benchmarks — by performance tier, by industry, and by raise type — so you can place your own number, and then check it against your specific salary, role, and location.

Key takeaways

• The 2026 US average raise percentage is ~3.8% of base pay (Mercer, WTW, Aon converge here). The merit-only portion is slightly lower, around 3.4-3.6%.
• The average is a budget, not a floor. Individual raises range from 0% (below expectations) to 8-12% (top performers). Half the workforce gets below the headline number.
• Inflation eats most of it. With 2026 CPI near 3%, the average 3.8% raise is roughly a 0.8% real raise — close to treading water.
• Raise type changes everything. A merit raise averages 3-5%; a promotion raise should be 8-20%; a counter-offer or market adjustment can be higher.
• Industry matters. Tech and life sciences budget 4.0-4.5%; education and government 2.0-3.0%. A 3% raise is below median in tech and above median in education.
• "Average" is not "good." A competitive raise beats inflation by at least a point, meets your industry median, and keeps you within ~10% of the market rate for your role.

What "average raise percentage" actually measures

When surveys report an average raise percentage, they're usually reporting the salary increase budget — the total pool of money employers set aside for raises, expressed as a percentage of total payroll. For 2026, the three major surveys land here:

| Survey | Total increase budget | Merit-only portion | |---|---|---| | Mercer (2025/2026 Compensation Planning) | 3.8% | ~3.5% | | WTW (Salary Budget Planning Report) | 3.9% | ~3.6% | | Aon (Salary Increase Survey) | 3.7% | ~3.4% |

The total budget includes everything: merit, cost-of-living, promotions, and market adjustments. The merit-only number is what's left after you strip out promotions and market moves. When people casually ask "what's the average raise," 3.8% (the total budget) is the cleanest single answer. When they ask "what's the average merit raise," 3.5% is closer.

One important caveat: these are planning numbers from employers, not always what lands in paychecks. Actual increases vary with mid-year budget pressure, individual performance, and how aggressively a given manager fights for their team.

Average raise percentage by performance rating

This is the part most people miss. The 3.8% average is distributed unevenly across employees on a pay-for-performance curve. A company with a 3.8% budget typically allocates it roughly like this:

| Performance rating | Typical raise percentage | |---|---| | Top performers (top ~10%) | 6-10%+ | | Strong / exceeds expectations (next ~20%) | 4.5-6% | | Meets expectations (middle ~55-60%) | 3.0-4.0% | | Below expectations (next ~8%) | 0-2% | | Does not meet expectations (bottom ~2%) | 0% |

The practical implication: if you got the "average" 3.8% and you believe you're a top-20% performer, that's a signal. Either your manager disagrees with your self-assessment, or there was a budget constraint on your team. Both are worth a direct, non-confrontational question: "Given my rating this cycle, I was expecting something above the company average — can you help me understand what drove this number?"

Average raise percentage by industry

Industry context flips the meaning of the same number. Approximate 2026 raise budgets by sector:

| Industry | Avg raise budget | |---|---| | Technology (software, cloud, AI) | 4.0-4.5% | | Life sciences / biotech | 3.9-4.2% | | Financial services | 3.6-4.0% | | Professional services | 3.6-3.8% | | Manufacturing / industrial | 3.4-3.6% | | Healthcare | 3.0-3.4% | | Retail / hospitality | 2.8-3.2% | | Education | 2.5-3.0% | | Government / public sector | 2.0-3.0% |

A 3% raise in technology is below the median for the sector; the same 3% in education is at or above it. If you work in a fast-moving sub-segment — AI/ML, cybersecurity, certain infrastructure roles — market wages moved enough in 2024-2025 that individual increases of 1-2 points above the industry budget are realistic for in-demand talent.

Merit raise vs. promotion vs. market adjustment

The single biggest reason raise percentages look so different across people: they're not all the same kind of raise.

Merit raise — the annual review increase tied to performance. Averages 3-5%. This is what the 3.8% figure mostly describes.

Promotion raise — happens when your title or scope changes. Should be 8-20%, depending on the size of the jump. If you were promoted and your increase landed in merit-raise territory (3-5%), you were likely under-leveled on the promotion itself.

Market / equity adjustment — a correction when your pay has fallen below the market rate for your role, independent of performance. These are often 5-15% and happen off the normal review cycle.

Counter-offer / retention raise — triggered by a competing job offer. Frequently the largest single-event raise, but it comes with its own tradeoffs.

If you're comparing your number to a friend's, ask which type of raise each of you got before drawing conclusions. A 12% number isn't necessarily "better performance" — it might just be a promotion or a market correction.

Average raise vs. inflation: the real-raise math

The headline percentage is nominal. What you can actually buy depends on inflation.

• 2026 CPI inflation is running near 3.0%.
• The average 3.8% raise therefore translates to roughly 0.8% in real terms.
• A 3.0% raise in 2026 is approximately a 0% real raise — your purchasing power stays flat.
• A raise below ~3% in 2026 is effectively a real pay cut.

This is why a perfectly "average" raise can still feel underwhelming: it's mostly cost-of-living maintenance, not genuine performance reward. To evaluate your raise honestly, subtract inflation first, then ask whether what's left reflects your contribution.

A quick way to estimate your real raise: real raise ≈ your raise percentage − inflation rate. A 5% raise in 2026 is about 2% real; a 4% raise is about 1% real.

So is an average raise a good raise?

Not necessarily. "Average" means typical, not strong. A competitive raise in 2026 generally clears four bars:

1. Beats inflation by at least a point — so roughly ≥ 4.0% in 2026.
2. Meets or exceeds your industry median (see the table above).
3. Keeps you within ~10% of the market rate for your role, level, and location.
4. Reflects your performance tier — top performers should be visibly rewarded above the company average.

If your raise misses one or more of these, you don't necessarily have a problem — but you do have a conversation worth having, ideally framed as a question about the mechanics rather than a complaint about the number.

Check where your raise percentage lands

The average is a starting point, not an answer. Whether your raise is competitive depends on your specific salary, raise percentage, industry, location, and experience level — and on whether you're comparing against merit data, market rates, or your own performance tier.

If you want a fast, specific read, paste your number into SalaryCheck at salarycheck.ai. Enter your salary and raise percentage along with your industry, location, and experience, and you get an inflation-adjusted "real raise," a percentile placement against 2026 raise budgets, a market-range comparison for your role, and draft talking points if you decide to push back. One-time $9.99, no account, no subscription. Informational only — not financial advice.

Frequently asked questions

What is the average raise percentage in 2026?

Approximately 3.8% of base salary in the US, based on salary budget surveys from Mercer, WTW, and Aon. The merit-only portion (excluding promotions and market adjustments) is closer to 3.4-3.6%. Individual raises range from 0% to over 10% depending on performance, industry, and raise type.

Is a 3% raise good in 2026?

A 3% raise is below the 2026 average of 3.8%, and with inflation near 3%, it's roughly a 0% real raise — your purchasing power stays flat. It's a typical "meets expectations" number in lower-budget industries like education or government, but below median in technology, finance, or life sciences.

What's the difference between the average raise and what I'll actually get?

The average is a company-wide budget, distributed unevenly. Roughly half of employees get below the headline number. Your individual raise depends on your performance rating, your manager's team-level budget, where you sit in your salary band, and whether your increase is a merit raise, a promotion, or a market adjustment.

What's a good raise percentage to ask for?

For a merit/performance raise, asking for 5-7% is reasonable if you can document above-average contribution. For a promotion, 8-20% is the appropriate range. For a market correction (you're paid below market for your role), the ask depends on the size of the gap. Anchor any request to data — your industry budget, your market rate, and specific wins.

How much of my raise is just inflation?

In 2026, with CPI near 3%, most of an average raise is cost-of-living maintenance. A 3.8% raise leaves roughly 0.8% in real merit terms. To find your real raise, subtract the inflation rate from your raise percentage.

Does the average raise percentage include promotions?

The total salary increase budget (~3.8%) includes a small promotional component. The merit-only figure (~3.5%) does not. Promotion raises are usually budgeted and tracked separately and are much larger — typically 8-20% — which is why they're often excluded when people discuss the "average raise."

Editorial methodology

The raise and salary budget figures in this guide draw from Mercer's 2025/2026 US Compensation Planning Survey, WTW's Salary Budget Planning Report, and Aon's Salary Increase Survey, all reflecting 2026 planning cycles. Inflation references are to US CPI running near 3% in 2026. Industry and performance-tier breakdowns are approximate and vary by company size, region, and subsector; all data reflects US employers. This guide is informational and is not financial, compensation, or career advice. Last reviewed: 2026-06-05.

For related benchmarks, see Average raise in 2026: is yours competitive?, Average merit increase in 2026, and Is a 3% raise good in 2026?. To act on your number, see How to ask for a raise in 2026 and Is my raise good?.