Average Raise Percentage 2026: What a Normal Raise Looks Like
The average 2026 raise is about 3.5 percent, but averages hide the tiers that matter. Here is what normal looks like at each level, in percents and in dollars.
The average raise percentage in 2026 is about 3.5 percent for solid performers, based on employer compensation budget surveys. Cost-of-living adjustments run 2 to 3 percent, top performers earn 5 percent or more, and promotions typically bring 10 to 15 percent. On a $70,000 salary, the average raise is about $2,450 a year.
The 2026 number
Employer compensation budget surveys point to merit increase budgets of about 3.5 percent for 2026. That figure is the average for employees meeting expectations, not a promise. Budgets are pools: your manager splits a fixed pot across the team, so some people get 2.5 percent while others get 5 percent, and it still averages out.
Context helps. The 3.5 percent level is down from the higher budgets of the inflation surge years, when companies stretched to 4 percent or more, and it sits above the lean 2 to 3 percent budgets of the 2010s. It is a normal year, not a generous one.
The tiers, in percents and dollars
On a $70,000 salary, here is what each tier of raise actually pays:
| Raise type | Typical percent | On $70,000 a year |
|---|---|---|
| Cost-of-living adjustment | 2 to 3 percent | $1,400 to $2,100 |
| Standard merit increase | 3 to 4 percent | $2,100 to $2,800 |
| Top performer merit | 5 percent or more | $3,500 and up |
| Promotion or role change | 10 to 15 percent | $7,000 to $10,500 |
The gap between the average and the top matters. A 5 percent merit raise on $70,000 pays $3,500 a year, which is $1,050 more per year than the 3.5 percent average of $2,450. Over several years that gap compounds, so the difference between "average" and "top performer" treatment is worth real money.
What pushes you above the average
- Documented impact. Raises follow evidence. Revenue you influenced, costs you cut, and problems you solved, written down with numbers, beat a general claim of working hard.
- Market position. If your pay sits below the market rate for the role, you have a market-adjustment case that sits outside the merit pool. This is the strongest lever most people never pull.
- Scarcity of your skills. Hard-to-replace skills and institutional knowledge raise your number. Managers pay more to keep people they cannot easily rehire.
- Timing. Budget season is when the pot gets divided. Making your case after allocations are set means waiting a year.
What pulls you below it
New hires in the first year often get prorated or skipped raises. Employees already paid above the market range for their role get smaller increases because the company is correcting, not rewarding. And in a layoff year, even 3.5 percent budgets get frozen or cut, so the survey average and your company's reality can differ.
How to use the average
Treat the average as a benchmark, not a target. If you are offered 2.5 percent in a year when merit budgets run 3.5 percent, that is a below-average outcome and a signal to ask what would have earned more. If you are offered 6 percent, you are being treated as a top performer or receiving a market correction, and you should know which. Compare your offer to both the average and your market rate, then decide whether to accept or negotiate. For the negotiation itself, read how to ask for a raise, and to check whether the raise is real after prices, see raise vs inflation.
Want the dollars for your own salary? The free pay raise calculator converts any percent into annual dollars, a new hourly rate, and per-paycheck pay in seconds.
Frequently asked questions
What is the average raise percentage in 2026?
About 3.5 percent for employees meeting expectations, based on employer compensation budget surveys. That is the average merit increase; cost-of-living adjustments run lower at 2 to 3 percent, and top performers earn 5 percent or more.
Is a 3 percent raise good in 2026?
It is slightly below the 3.5 percent average merit increase, so it is an average-to-below-average outcome. Whether it is good also depends on inflation: if prices are rising faster than 3 percent, it is a real-terms pay cut.
What is a good raise percentage?
A typical merit raise is 3 to 5 percent, a cost-of-living adjustment is 2 to 3 percent, and a promotion usually brings 10 to 15 percent. A raise is genuinely good when it beats inflation by a clear margin.
What is the average salary increase per year?
In a normal year, average merit increases run 3 to 4 percent. The figure moves with inflation and the labor market: it rose above 4 percent during the inflation surge and sat near 3 percent through much of the 2010s.
How much is the average raise in dollars?
At the 2026 average of about 3.5 percent, the average raise on a $70,000 salary is $2,450 a year, or about $94 per biweekly paycheck before taxes.
Run your own numbers. The free pay raise calculator turns any raise percent into a new salary, annual raise dollars, a new hourly rate, and gross per-paycheck pay.
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