3.5%
median raise in 2025
2025 Salary Increase Benchmarks
How does your raise compare to the industry average?
Free salary benchmark data for 20+ industries, 15 job functions, and major U.S. regions, compiled from Mercer, WorldatWork, Conference Board, and BLS survey summaries.
MercerWorldatWorkConference BoardBLSPayScale
3.2%
Mercer 2026 projected median merit increase
8.5%
average promotion increase
85%
of employers still planning raises
Sources: Conference Board 40th Survey; Mercer 2025/2026; iMercer March 2025 Pulse; WorldatWork WTW 2025
Quick Answer
What is the average salary increase in 2025?
The average U.S. salary increase in 2025 is 3.5%, based on the Conference Board's 40th Annual Salary Increase Budgets Survey and supported by similar Mercer, PayScale, and iMercer planning data. Mercer's 2026 projection moves the median merit increase slightly lower to 3.2%. Top performers still tend to land in the 5% to 7% range, while promotions average about 8.5%. With inflation around 3.0%, the average worker is only seeing a modest real raise of roughly +0.5%.
National Overview
2025 national salary increase summary
Survey methodologies differ, but the 2025 consensus is tight. Use 3.5% as the clean national baseline, then compare that with the more relevant industry, function, and regional benchmarks below.
Median Raise
3.5%
All industries in 2025
Conference Board
Top Performer
5–7%
Exceeds expectations
Mercer 2025
Promotion
8.5%
One-level promotion
iMercer March 2025
Real Raise
+0.5%
After 3.0% inflation
3.5% minus 3.0%
2025 national salary increase by source
This comparison keeps the headline survey numbers side by side so you can see where the consensus clusters and why different reports sometimes look slightly different.
| Source | 2025 Actual / Projected | 2026 Projected | Sample Size | Metric Used |
|---|---|---|---|---|
| Conference Board (40th Survey) | 3.5% | 3.5% | ~300 organizations | Median budget |
| Mercer Salary Survey | 3.5% | 3.2% | 1,000+ organizations | Median merit increase |
| WorldatWork / WTW | 3.7% | 3.7% | ~2,000 organizations | Mean salary budget |
| PayScale SBS | 3.5% | 3.5% | ~5,000 organizations | Median budget |
| BLS Employment Cost Index | 3.8% | — | National sample | Wages and salaries YoY |
| iMercer Pulse (Mar 2025) | 3.5% | — | ~500 organizations | Median merit plus off-cycle |
Consensus range: 3.2% to 3.8%, with a midpoint of roughly 3.5%. That is the right starting point when you need a broad-market comparator before drilling into role-specific data.
Sources: Conference Board 40th Salary Increase Budgets Survey; Mercer 2025/2026 Salary Survey; WorldatWork WTW 2025; PayScale Salary Budget Survey 2025–2026; BLS ECI Dec 2025; iMercer March 2025 Compensation Planning Pulse.
Industry Benchmark Table
2025 salary increase by industry
Filter by sector, sort by raise size or trend, and search for a specific industry. The table stays fully front-end only; there is no SSR URL state to maintain.
Filter & Sort
Direction
| Industry | Avg Raise 2025 | vs National (3.5%) | Top Performer | Trend vs 2024 | Key Driver |
|---|---|---|---|---|---|
| Technology / Software | 5.2% | +1.7% | 7–10% | Up 0.4% | AI talent demand and specialized skills premium |
| Semiconductors / Hardware | 5.0% | +1.5% | 7–9% | Up 0.5% | CHIPS Act investment and fab expansion |
| Engineering / Aerospace | 4.8% | +1.3% | 6–9% | Up 0.3% | Defense spending and infrastructure programs |
| Healthcare / Pharma | 4.5% | +1.0% | 6–8% | Up 0.3% | Staffing shortages and GLP-1-related expansion |
| Biotech / Life Sciences | 4.4% | +0.9% | 6–8% | Flat | R&D investment and clinical trial growth |
| Energy / Utilities | 4.3% | +0.8% | 6–7% | Up 0.4% | Grid modernization and clean-energy transition |
| Finance / Banking | 4.1% | +0.6% | 6–8% | Flat | Stable budgets and bonus-heavy pay structures |
| Legal Services | 4.0% | +0.5% | 5–7% | Flat | Compliance and regulatory complexity |
| Insurance | 4.0% | +0.5% | 5–7% | Flat | Actuarial demand and digital transformation |
| Construction / Real Estate | 3.9% | +0.4% | 5–7% | Up 0.2% | Housing demand and skilled-trades shortages |
| Professional Services | 3.8% | +0.3% | 5–7% | Flat | Steady advisory and consulting demand |
| Consumer Goods / FMCG | 3.7% | +0.2% | 5–6% | Down 0.1% | Margin pressure and volume recovery |
| Media / Entertainment | 3.6% | +0.1% | 5–7% | Down 0.3% | Streaming consolidation and AI content tooling |
| Transportation / Logistics | 3.5% | Baseline | 5–6% | Flat | E-commerce normalization and driver supply |
| National Average | 3.5% | Baseline | 5–7% | Up 0.3% | Conference Board and Mercer consensus |
| Manufacturing | 3.4% | -0.1% | 5–6% | Flat | Reshoring activity and automation investment |
| IT Services / Outsourcing | 3.3% | -0.2% | 5–6% | Down 0.2% | Offshoring pressure and commoditization |
| Marketing / Advertising | 3.3% | -0.2% | 5–6% | Down 0.2% | AI tooling reducing some headcount demand |
| Government / Public Sector | 3.1% | -0.4% | 4–5% | Flat | Budget constraints and COLA-driven increases |
| Retail / E-commerce | 3.0% | -0.5% | 4–5% | Down 0.2% | Thin margins and turnover normalization |
| Education (K-12 / Higher Ed) | 2.9% | -0.6% | 4–5% | Flat | Budget cycles and enrollment pressure |
| Nonprofit / Social Services | 2.8% | -0.7% | 4–5% | Flat | Grant dependency and donor constraints |
| Hospitality / Food Service | 2.7% | -0.8% | 4–5% | Down 0.3% | Labor normalization and tip-income dynamics |
Data compiled from Mercer, WorldatWork, Conference Board, and BLS summaries. Last benchmark refresh: March 2025.
Merit Increase Matrix
2025 merit increase matrix by performance and pay position
Most structured employers do not hand out one flat raise number. They combine performance rating with pay-position logic, often measured through compa-ratio, to decide how much of the salary budget goes to each employee.
| Performance Rating | Below Midpoint | At Midpoint | Above Midpoint |
|---|---|---|---|
| Exceptional (Top 5–10%) | 7.0 – 9.0% | 5.5 – 7.0% | 4.0 – 5.5% |
| Exceeds Expectations (Top 25%) | 5.5 – 7.0% | 4.0 – 5.5% | 3.0 – 4.0% |
| Meets Expectations (Middle 50%) | 3.5 – 5.0% | 2.5 – 3.5% | 1.5 – 2.5% |
| Needs Improvement (Bottom 15%) | 1.0 – 2.5% | 0 – 1.5% | 0% |
| Unsatisfactory (Bottom 5%) | 0% | 0% | 0% |
What is a compa-ratio?
Compa-ratio = your salary ÷ the midpoint of your pay band
Example: $72,000 salary ÷ $80,000 midpoint = 0.90 compa-ratio
Interpretation: at 90% of midpoint, you are still below the center of the range, which is why structured employers often allow a larger merit increase to close the gap.
| Promotion Type | Typical Increase | Source |
|---|---|---|
| One-level promotion (Analyst to Senior Analyst) | 8.5% | iMercer March 2025 |
| Two-level promotion (Manager to Director) | 12–18% | WorldatWork 2025 |
| Individual contributor to manager | 10–20% | Mercer 2025 |
| Director to VP / Executive | 15–30% plus equity | Conference Board 2025 |
Sources: iMercer March 2025 Compensation Planning Quick Pulse; WorldatWork WTW 2025; Mercer Salary Survey 2025.
By Job Function
2025 salary increase by job function
Function often matters more than industry. A high-demand AI, security, or product role in a slower-moving sector can still earn a market-leading raise because the labor market for that function is tighter than the sector average.
| Job Function | Avg Raise 2025 | Demand Level | vs National Avg | Notes |
|---|---|---|---|---|
| AI / Machine Learning | 6.5% | Critical | +3.0% | Fastest-growing function with a severe talent shortage |
| Cybersecurity | 5.8% | Critical | +2.3% | Persistent shortage of experienced security talent |
| Data Science / Analytics | 5.2% | High | +1.7% | Enterprise data strategy remains a major budget priority |
| Software Engineering | 5.0% | High | +1.5% | Below the 2022 peak, but still materially above average |
| Product Management | 4.8% | High | +1.3% | Digital product expansion across nearly every sector |
| Finance / Accounting | 4.2% | Moderate-High | +0.7% | FP&A and controller roles remain in demand |
| Sales / Business Development | 4.0% | Moderate-High | +0.5% | Base salary is only part of the package in many teams |
| Legal / Compliance | 4.0% | Moderate-High | +0.5% | Regulatory environments continue to support demand |
| Supply Chain / Operations | 3.8% | Moderate | +0.3% | Post-pandemic normalization with resilience planning |
| Human Resources | 3.6% | Moderate | +0.1% | HRBP and compensation analytics roles still earn premiums |
| National Average | 3.5% | Baseline | Baseline | All functions combined |
| Project Management | 3.4% | Moderate | -0.1% | Stable demand with certification premiums in some sectors |
| Marketing / Communications | 3.2% | Moderate | -0.3% | AI tooling is reducing some specialist demand |
| Customer Service / Support | 3.0% | Stable | -0.5% | Automation pressure is strongest in tier-one support |
| Administrative / Clerical | 2.8% | Stable | -0.7% | Automation is limiting long-term demand growth |
By Region
2025 salary increase by U.S. region
Regional raise budgets still track local labor-market intensity. Tech-heavy coastal hubs and biotech centers sit above the national average, while lower-cost and more budget-constrained regions cluster closer to COLA territory.
| Region | States Included | Avg Raise 2025 | vs National | Top Metro | Key Driver |
|---|---|---|---|---|---|
| Pacific Coast | CA, WA, OR | 4.8% | +1.3% | San Francisco | Tech concentration and cost-of-living pressure |
| Mid-Atlantic | NY, NJ, PA, MD, DC | 4.2% | +0.7% | New York City | Finance, legal, and media concentration |
| New England | MA, CT, NH, VT, ME, RI | 4.0% | +0.5% | Boston | Biotech, education, and healthcare density |
| Mountain West | CO, UT, AZ, NV, NM | 3.9% | +0.4% | Denver / Austin | Tech migration and energy investment |
| South Atlantic | FL, GA, NC, SC, VA | 3.7% | +0.2% | Miami / Atlanta | Corporate relocations and finance growth |
| National Average | All 50 states | 3.5% | Baseline | — | Conference Board consensus |
| Great Lakes | IL, OH, MI, IN, WI, MN | 3.4% | -0.1% | Chicago | Manufacturing, healthcare, and finance mix |
| South Central | TX, OK, LA, AR, MS | 3.4% | -0.1% | Houston / Dallas | Energy, tech growth, and lower wage bases |
| Plains / Midwest | KS, NE, IA, MO, ND, SD | 3.1% | -0.4% | Kansas City | Agriculture, manufacturing, and stable labor markets |
| Appalachia / Southeast | KY, TN, WV, AL | 3.0% | -0.5% | Nashville | Healthcare growth with lower salary bases |
Am I Underpaid?
Compare your raise to the benchmark for your profile
This is the highest-signal interactive tool on the page. It weights job function most heavily, then industry, then region, and finally adjusts the range for performance level.
Your Benchmark Raise5.0% to 6.3%
Your Actual Raise3.5%
Diagnostic
Your raise is 1.5% to 2.8% below benchmark
Materially below market for this profile. Worth negotiating if the scope and performance assumptions are accurate.
Based on industry (5.2%), function (5.0%), region (4.8%), and performance (Exceeds Expectations), a raise of 5.0% to 6.3% is typical for your profile.
On a $120,000 salary, that gap is roughly $1,824 to $3,330 per year in benchmark value.
Historical Trends 2020–2025
How raise budgets changed from the pandemic to 2025
Salary increases peaked in 2022 and 2023 during the post-pandemic labor shortage, with tech reaching 6.5%. Since then, budgets have moderated as inflation cooled and hiring slowed, but tech and healthcare still sit above the national average in 2025.
Key moments on the timeline
2020
COVID-19 pandemic
Salary freezes were widespread.
2021
Recovery
Hiring resumed and raises ticked up.
2022
Great Resignation peak
Tech pay budgets surged.
2023
Inflation peak
Raises hit 4.4% nationally.
2024
Normalization
Tech layoffs moderated increases.
2025
Stabilization
Consensus returned near 3.5%.
COLA vs Merit
COLA versus merit increase
These two ideas often get mixed together in raise conversations. COLA is about holding purchasing power steady against inflation. Merit is about differentiating pay based on contribution and market alignment.
| Feature | COLA | Merit Increase |
|---|---|---|
| Purpose | Preserve purchasing power against inflation | Reward individual performance |
| Based on | CPI / inflation rate | Performance rating and pay position |
| Typical amount (2025) | 3.0% matching CPI | 2.5–7.0% depending on rating |
| Real purchasing power change | Zero by design | Positive if above inflation |
| Who receives it | All employees equally | Differentiated by performance |
| Common in | Government, unions, and some large corporations | Private sector and most white-collar roles |
Real raise at 2025 inflation
| Nominal Raise | Inflation | Real Raise | Verdict |
|---|---|---|---|
| 2.0% | 3.0% | -1.0% | Real pay cut |
| 3.0% | 3.0% | 0.0% | Treading water |
| 3.5% | 3.0% | +0.5% | Modest real gain |
| 5.0% | 3.0% | +2.0% | Meaningful real raise |
| 7.0% | 3.0% | +4.0% | Strong real raise |
By Company Size
2025 salary increase by company size
Larger companies usually have tighter salary-governance controls and more fixed review cycles. Smaller employers often have more flexibility, but they also have less predictability and more variance in outcomes.
| Company Size | Avg Raise 2025 | Raise Frequency | Notes |
|---|---|---|---|
| Startup (<50 employees) | 4.5–8% (variable) | Ad hoc / milestone-based | High variance with equity often replacing part of cash compensation |
| Small (50–499) | 3.8% | Annual | More flexibility and less formal structure |
| Mid-size (500–4,999) | 3.6% | Annual | Merit matrices are common with moderate budget discipline |
| Large (5,000–19,999) | 3.5% | Annual fixed cycle | Structured merit processes and compa-ratio management |
| Enterprise (20,000+) | 3.3% | Annual fixed cycle | Rigid base-pay budgets with bonus and equity smoothing outcomes |
| Fortune 500 | 3.2% | Annual fixed cycle | Mercer 2026 projection with more total-comp compression |
Data Sources & Methodology
How these benchmark tables were assembled
This page compiles public summaries and planning figures from primary compensation survey publishers. The goal is not to reproduce proprietary datasets, but to create a usable, static benchmark layer for readers comparing their raise to the broader market.
| Source | Survey Name | Sample | Update Frequency | Access |
|---|---|---|---|---|
| Conference Board | 40th Annual Salary Increase Budgets Survey | ~300 U.S. organizations | Annual | Free summary |
| Mercer | 2025/2026 U.S. Compensation Planning Survey | 1,000+ U.S. organizations | Annual + pulse | Paid full / free summary |
| WorldatWork / WTW | 2025 Salary Budget Survey | ~2,000 organizations | Annual | Paid full / free summary |
| BLS | Employment Cost Index | National employer sample | Quarterly | Free |
| PayScale | Salary Budget Survey 2025–2026 | ~5,000 organizations | Annual | Free summary |
| iMercer | March 2025 Compensation Planning Quick Pulse | ~500 organizations | Pulse survey | Free summary |
Benchmarks are normalized to percentage change in base salary or salary budget. They are most useful as directional context, not as a substitute for role-level salary survey data or an employer's internal pay range.
When the sources disagree, this page shows the spread instead of hiding it. That is why the national section reports a consensus range and why the interactive modules weight industry, function, region, and performance separately.
Mini Calculator CTA
Test the benchmark against your own salary
Use 3.5% as the national baseline, then swap in your actual raise or target number and see the monthly and bi-weekly impact immediately.
New Annual Salary$93,150
Monthly Increase+$262.50
Bi-weekly Increase+$121.15
FAQ
Salary benchmark FAQs
These answers are rendered directly into the HTML so search engines can see the complete benchmark and methodology context without needing client-side expansion.
What is the average salary increase in 2025?
Most 2025 salary planning surveys cluster in the 3.2% to 3.8% range, with 3.5% as the most defensible midpoint for a national baseline. Conference Board, Mercer, PayScale, and iMercer all land near that figure, while BLS wage growth runs slightly higher because it measures realized year-over-year wage movement rather than only merit budgets.
What is a good raise in 2025?
A good raise in 2025 is one that clears inflation and beats your relevant benchmark. For many white-collar employees, that means something above 3.5%, while strong performers often target 5% to 7% and promotions usually require meaningfully more.
Which industries are giving the biggest raises in 2025?
Technology, semiconductors, engineering, healthcare, and biotech continue to lead the market in 2025. Those sectors combine high replacement costs, specialized skills, and still-elevated demand, so they sit well above the broad-market average.
How much of a promotion increase is normal?
One-level promotions often land around 8.5%, but the real range is wider. Larger scope jumps, people-management transitions, or executive promotions can run into the low teens or higher, especially if equity or bonus opportunity also changes.
Do company size and location affect raise benchmarks?
Yes. Company size affects how structured and how rigid the budget process is, while location changes the local labor-market pressure and cost-of-living backdrop. Pacific Coast and major coastal hubs still benchmark above the national average, while lower-cost and more budget-constrained regions cluster below it.
How should I use benchmark data in a raise negotiation?
Use benchmarks as calibration, not as your only evidence. Start with the relevant industry, function, and regional benchmark, then combine that with your actual performance, scope changes, and market demand for your role to make the case stronger.
What is the difference between COLA and a merit increase?
A COLA is designed to offset inflation and preserve buying power, while a merit increase differentiates pay based on contribution, performance, and pay-position logic. The two can look similar numerically in a low-inflation year, but they are driven by different compensation philosophies.
How do I know if I am underpaid?
You are more likely to be underpaid if your actual raise falls materially below the weighted benchmark for your industry, function, region, and performance profile. This page includes a diagnostic tool that estimates a benchmark range and the annual dollar gap based on your current salary.
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