Average Raise Percentage in 2026: Data Guide

What Counts as a Normal Raise?

When your review comes back with "3.5%," is that good, average, or an insult? Context matters. The average raise percentage differs dramatically by type: annual merit increases, cost-of-living adjustments, promotions, and job changes all live on different scales. Understanding the benchmarks helps you evaluate an offer — and negotiate a better one.

Whatever percentage you're offered or requesting, translate it into real dollars with a Raise Calculator so you negotiate on the number that actually lands in your bank account.

Average Raise by Type

• Annual merit increases: Typically 3% to 5% for solid performers in normal economic years; top performers may see 5% to 8%.
• Cost-of-living adjustments (COLA): Generally track inflation — often 2% to 4% — and are separate from merit in many companies.
• Promotions: Usually 8% to 15%, reflecting genuinely expanded responsibility. See raise vs promotion.
• Internal transfers to higher bands: Often 5% to 12% depending on how far the move jumps.
• Changing employers: Historically the biggest lever — job switchers often see 10% to 20%+ increases, though this varies with the labor market.

These are broad US benchmarks; tech, finance, and healthcare often run hotter, while education, nonprofits, and government typically run cooler with stronger benefits offsetting lower cash growth.

What a "Good" Raise Looks Like in 2026

A good raise beats inflation and reflects your performance. If inflation is running around 3% and you receive 3%, your purchasing power merely held steady — that's maintenance, not a reward. A genuinely good merit raise typically lands 1-3 points above inflation for strong performers. Anything that merely matches inflation after a strong year is a signal to have the compensation conversation — our guide on what makes a raise good breaks down the evaluation.

Factors That Move Your Number

• Performance rating: The single biggest driver of merit budgets in most companies.
• Position in salary band: Being below your band's midpoint leaves more room; being near the max caps increases.
• Market heat: Hard-to-hire roles command larger adjustments to prevent attrition.
• Company performance: Merit budgets shrink in down years regardless of individual performance.
• Tenure: Long tenure without market adjustments often creates the biggest gaps — and the strongest negotiation cases.

How to Benchmark Your Own Raise

1. Check salary surveys for your role, level, and metro area (not just national averages).
2. Ask your manager where you sit in the salary band — below midpoint means headroom.
3. Compare your increase to inflation: subtract inflation from your raise to find your real increase.
4. Factor total compensation: a 3% raise plus a bigger bonus or equity refresh may beat a 5% base-only raise.
5. Use a paycheck calculator to see the actual take-home difference.

Conclusion

Average raises cluster around 3-5% for merit, 8-15% for promotions, and 10-20%+ for job changes — but averages are just the starting point for your negotiation. Benchmark your role, subtract inflation to find your real gain, and use the data to make a specific, evidence-backed ask. Learn how to ask for a raise to turn the benchmark into a bigger number.