The average promotion salary increase in 2026 is meaningfully higher than a routine annual merit raise. Mercer’s U.S. compensation planning survey reported that employers expected an average 8.7% pay increase for promotions in 2026, compared with a much smaller normal merit-increase budget.
Quick answer: Mercer’s 2026 U.S. planning data put the average promotional pay increase at 8.7%. That does not mean every promotion should be 8.7%; actual increases depend on the new role, salary band, market pay, internal equity and how much responsibility changes.
To see what any promotion percentage means for your own salary, use the RaiseDelta Salary Increase Calculator.
What is the average promotion salary increase in 2026?
Mercer’s October 2025 U.S. Compensation Planning Survey, covering more than 1,000 organizations, found that employers planned an average 8.7% pay increase for promotions in 2026. The same survey projected that about 9% of employees would be promoted.
By comparison, the same Mercer survey projected average 2026 merit increase budgets of 3.2% and total salary increase budgets of 3.5%. Mercer’s later 2026 update said actual 2026 salary budgets finished about 0.1 percentage point below those projections. That gap illustrates an important point: a promotion raise is usually judged differently from a normal annual increase because the job itself has changed.
Source: Mercer 2026 compensation planning survey · Source: Mercer 2027 planning update with actual 2026 context
How much should your salary increase with a promotion?
There is no universal promotion percentage. A useful benchmark is the market value of the new role, not simply a fixed number added to your current salary. A promotion can move you into a different salary band, management level or specialized position where the appropriate pay range is materially higher.
Indeed’s September 2026 career guidance describes internal promotion raises in roughly the 8% to 15% range, while also emphasizing that industry, geography, performance and role complexity can change the result. Treat that range as context, not a guarantee.
Source: Indeed promotion raise guide, updated September 2026
Promotion raise vs normal annual raise
| Type of increase | What it usually reflects | How to evaluate it |
|---|---|---|
| Annual merit raise | Performance within the same role | Compare with company merit budgets and inflation |
| Promotion raise | Higher-level role or expanded responsibility | Compare with the new role’s salary range and market pay |
| Market adjustment | Current pay is below market | Compare with external compensation data |
| Cost-of-living adjustment | Higher living costs or inflation | Compare with purchasing-power changes |
If you want more context on performance-based increases, see What Is a Merit Raise?.
Promotion raise examples on a $65,000 salary
| Promotion raise | Annual increase | New salary | Monthly increase |
|---|---|---|---|
| 5% | $3,250 | $68,250 | $270.83 |
| 8.7% | $5,655 | $70,655 | $471.25 |
| 10% | $6,500 | $71,500 | $541.67 |
| 15% | $9,750 | $74,750 | $812.50 |
These are gross-pay examples before taxes, benefits deductions or other payroll changes.
What does an 8.7% promotion raise look like at different salaries?
| Current salary | 8.7% increase | New salary |
|---|---|---|
| $50,000 | $4,350 | $54,350 |
| $65,000 | $5,655 | $70,655 |
| $80,000 | $6,960 | $86,960 |
| $100,000 | $8,700 | $108,700 |
Is a 5% raise good for a promotion?
A 5% increase can be a strong annual raise, but it may be modest for a true promotion if the new job carries substantially more responsibility. For 2026, 5% is below Mercer’s 8.7% average promotional increase benchmark. That does not automatically make 5% unfair: the right comparison is the pay range for the new role and your position within that range.
For a detailed breakdown of what 5% means in dollars, see What Is a 5% Raise?.
Is a 10% raise good for a promotion?
A 10% raise sits slightly above Mercer’s 8.7% 2026 promotional benchmark and can be a solid increase for many internal promotions. But if the promotion moves you into a much higher salary band, 10% may still leave you low relative to the market. Compare the resulting salary—not only the percentage—with compensation for the new title and level.
Is a 15% raise good for a promotion?
A 15% promotion raise is well above Mercer’s 2026 average benchmark and is near the upper end of the range described in Indeed’s current guidance. It may be more plausible when the promotion includes a major level change, people management, specialized skills, a salary-band jump or a market correction.
Internal promotion vs external job offer
Internal promotion percentages can be constrained by company pay bands and internal-equity rules. An external employer may price the same role differently because it is hiring at the current market rate rather than building from your existing salary. That is why evaluating only the percentage increase can be misleading.
For example, a 10% increase from $65,000 produces a $71,500 salary. If comparable roles in your market commonly pay materially more than that, the percentage may look attractive while the final salary still falls short of the role’s market value.
What to check before accepting a promotion salary
- The new salary range: Ask where the role sits within the company’s pay band.
- Market compensation: Compare the new title, level, location and experience requirements.
- Total compensation: Include bonus, equity, retirement contributions and benefits.
- Scope of responsibility: More direct reports, budget ownership or specialized accountability can justify a different comparison.
- Timing of the next review: A lower starting increase may matter more if another review is far away.
How to calculate your promotion raise percentage
If you know your old salary and promoted salary, use:
((New salary − Old salary) ÷ Old salary) × 100
Example: moving from $65,000 to $71,500 is a $6,500 increase. $6,500 ÷ $65,000 × 100 = 10%.
For more worked examples, see How to Calculate Salary Increase Percentage.
Frequently asked questions
What is the average promotion raise in 2026?
Mercer’s U.S. 2026 compensation planning survey reported an average promotional pay increase of 8.7%.
Is 8% a good promotion raise?
An 8% increase is close to Mercer’s 8.7% 2026 benchmark. Whether it is good for you depends on the new role’s salary range, market value and increase in responsibility.
Should a promotion raise be higher than a merit raise?
Often, yes. A merit raise rewards performance within the current role, while a promotion usually reflects a move to a higher-level job with greater responsibility. Mercer’s 2026 benchmarks illustrate that difference: promotion increases averaged much higher than normal merit budgets.
Can you negotiate an internal promotion salary?
Often you can discuss the offer, especially when you can support your case with the new role’s responsibilities, market compensation, specialized skills and measurable results. The employer may still have internal salary-band limits.
Calculate your promotion: Enter your current salary and raise percentage in the RaiseDelta Salary Increase Calculator to see your new annual, monthly, biweekly and hourly pay.