Quick Answer
The average raise in 2026 is approximately 4.1% for all employees, with high performers typically receiving 5-7% increases. Entry-level workers often see 6-8% raises, while management roles average 3-5%. Geographic location and industry significantly impact these ranges.
Best Answer
Dr. Lisa Park, Labor Market Researcher
Best for typical salaried and hourly employees across all industries and experience levels
What is the typical raise percentage in 2026?
The average salary increase for 2026 is 4.1% according to recent compensation surveys, though this varies significantly by performance level, industry, and geographic location. High-performing employees typically receive 5-7% increases, while average performers see 3-4% raises.
How raises break down by performance level
Industry variations in 2026 raises
Technology and healthcare sectors lead with average increases of 5.2% and 4.8% respectively. Traditional industries like manufacturing and retail typically offer 3.5-4% raises. According to Bureau of Labor Statistics data, professional services and finance sectors average 4.3% increases.
Geographic impact: Major metropolitan areas see 20-30% higher raise percentages than rural areas. San Francisco, New York, and Seattle employees average 5.5-6% increases, while smaller markets typically see 3.5-4.5%.
Example: $65,000 salary raise calculation
If you earn $65,000 and receive a 4.5% raise:
After federal and state taxes (assuming 22% bracket), your take-home increase would be approximately $88 per biweekly paycheck.
Factors that influence your raise percentage
What you should do
Research your industry's average using salary surveys from Glassdoor, PayScale, or industry associations. Document your achievements and market value before requesting a raise. If your company offers below 3%, consider that you're effectively taking a pay cut due to inflation.
Key takeaway: A 4.1% average raise means anything below 3% isn't keeping pace with inflation, while 5%+ puts you ahead of most workers.
Key Takeaway: The 2026 average raise of 4.1% varies significantly by performance and industry, with anything below 3% meaning you're losing purchasing power to inflation.
Average raise percentages by performance level and salary impact
| Performance Level | Average Raise % | $60,000 Salary Impact | $80,000 Salary Impact |
|---|---|---|---|
| Top performer | 6-8% | $3,600-$4,800 | $4,800-$6,400 |
| Above average | 4.5-6% | $2,700-$3,600 | $3,600-$4,800 |
| Meets expectations | 3-4% | $1,800-$2,400 | $2,400-$3,200 |
| Below expectations | 0-2% | $0-$1,200 | $0-$1,600 |
More Perspectives
Marcus Rivera, Compensation & Benefits Analyst
Best for recent graduates and employees in their first 1-3 years of work experience
Entry-level workers see higher raise percentages
New employees typically receive larger percentage increases than seasoned workers. Entry-level raises in 2026 average 6-8%, significantly higher than the overall 4.1% average. This reflects rapid skill development and companies' investment in retaining new talent.
Why entry-level raises are higher
Your learning curve is steep in the first few years, making you more valuable quickly. According to compensation data, employees see their biggest percentage gains in years 1-3: first year averages 7%, second year 6%, third year 5%.
Example for a $45,000 starting salary:
Negotiating your first raises
Document everything you've learned and accomplished. Entry-level employees often underestimate their growth. Keep a record of new responsibilities, completed projects, and positive feedback.
Timing matters: Most companies do annual reviews, but don't wait if you've taken on significantly more responsibility. A mid-year conversation about role expansion can lead to immediate adjustments.
Key takeaway: Entry-level employees should expect 6-8% raises in their first few years, well above the 4.1% average for all workers.
Key Takeaway: Entry-level workers typically receive 6-8% raises, nearly double the overall average, reflecting rapid skill development and company investment in new talent.
Marcus Rivera, Compensation & Benefits Analyst
Best for employees with families who need to consider total compensation and benefits changes
Family considerations beyond raise percentage
While the 4.1% average raise sounds straightforward, families need to evaluate total compensation changes. Health insurance premiums often increase 5-8% annually, potentially offsetting salary gains. Child care costs are rising 6% annually, making the real impact of your raise smaller than it appears.
Total compensation analysis for families
A 4% salary raise might actually be a net loss if benefits costs increase. Track these changes:
Example family budget impact:
$75,000 salary with 4% raise = $3,000 increase
But if family health premiums rise $1,800 annually, your net gain is only $1,200 or 1.6%.
Negotiating family-friendly benefits
Sometimes non-salary improvements provide more value than percentage raises. Consider negotiating:
Key takeaway: Families should evaluate total compensation changes, as rising benefit costs can reduce the real value of a 4% raise to just 1-2%.
Key Takeaway: Families must consider rising benefit costs alongside salary increases, as healthcare premium increases often reduce the real value of a typical 4% raise.
Sources
- Bureau of Labor Statistics Employment Cost Index — Quarterly data on wage and benefit cost changes across industries
- IRS Publication 15-T — Federal Income Tax Withholding Methods for calculating take-home impact
Related Questions
Reviewed by Dr. Lisa Park, Labor Market Researcher on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.