If you’re wondering what kind of raise to expect next year, the big compensation surveys are in, and they agree to a remarkable degree: most U.S. employers plan to spend about 3.5% of payroll on raises in 2027. That’s the fourth straight year of “steady, not generous.” Here’s what the numbers say, who gets more, and how to use the data when you ask for a raise.
The 2027 salary budget numbers
- Mercer QuickPulse (1,001 employers, July 2026): 3.2% average merit increase and 3.5% total increase, including promotions and other adjustments.
- Payscale Salary Budget Survey (1,266 organizations): 3.5% planned for 2027, up from 3.4% actually given in 2026. 30% of employers expect a bigger budget than last year, versus 16% a year ago.
- WorldatWork (1,799 organizations): 3.6% mean total salary increase budget, the same as 2026 actuals.
- Korn Ferry (5,512 employers): 3.3% average, 3.0% median. Only 2% plan no increases at all.
WorldatWork’s roundup also lists the Conference Board at a 3.5% median and WTW at a 3.4% average. In plain English: an “average” raise next year is roughly 3% to 3.5%.
Which industries pay more
Mercer’s data shows a real spread. High tech (3.8%), banking (3.7%), and energy, insurance and services (3.6%) have the biggest merit budgets. Consumer goods (2.9%), healthcare (3.0%) and retail (3.0%) trail. If you work in a lagging industry, a job change into a higher-budget one can be worth more than any annual raise.
What 3.5% means for your paycheck
On a $60,000 salary, a 3.5% raise is about $2,100 a year before taxes, or roughly $80 per biweekly paycheck. That’s before rising health premiums take their cut; see our guide to 2027 open enrollment for how to protect it.
How to beat the average
- Ask before budgets are locked. In July, Mercer found 87% of 2027 budgets were still preliminary. Many companies finalize in Q4, so talk to your manager now, not in March.
- Bring market data. Look up your role’s pay range on sites like the BLS Occupational Outlook Handbook and in posted salary ranges for similar jobs.
- Tie the ask to results. Budgets are tight, so employers are steering money toward high performers and hard-to-replace skills. Show measurable wins.
- Ask about promotion, not just merit. The total budget (3.5%) is higher than the merit budget (3.2%) because promotions and market adjustments come out of a separate pool.
- Prepare for the interview, too. If the internal answer is no, outside offers often come with bigger jumps. Our interview prep guide can help.
Sources: Mercer, Payscale, WorldatWork and Korn Ferry 2026–2027 salary budget surveys, linked above.