RaiseDelta

A good raise percentage in 2026 depends on why your pay is increasing. A routine annual raise, a merit increase, a promotion and a market adjustment should not all be judged by the same number. As a practical benchmark, U.S. employer salary budgets in 2026 remained in the low-to-mid single digits, while promotion increases were typically higher.

Already know your percentage? Use the RaiseDelta Salary Increase Calculator to see your new annual salary, monthly pay, biweekly pay, hourly equivalent and real raise after inflation.

What is the average raise percentage in 2026?

Mercer’s U.S. compensation planning data provides a useful benchmark. Employers had projected average 2026 merit increase budgets of 3.2% and total salary increase budgets of 3.5%. Mercer’s later 2027 planning update reported that actual 2026 budgets finished about 0.1 percentage point below those projections, implying roughly 3.1% for merit and 3.4% for total salary increases.

Indeed’s 2026 employer guidance also notes that companies may budget roughly 3% to 5% for annual pay raises, depending on industry, revenue and other business conditions.

Source: Mercer 2027 compensation planning update · Source: Indeed 2026 employer guidance

So, what is a good raise percentage?

There is no single percentage that is automatically “good.” A better approach is to compare your raise with the reason for the increase.

Situation	How to think about the raise
Routine annual review	Compare it with your employer’s normal salary budget and inflation.
Strong performance	A raise above the standard budget may indicate stronger merit recognition.
Promotion	Usually deserves a larger comparison because the role itself has changed.
Market adjustment	Compare your new pay with current market compensation for the role.
Cost-of-living adjustment	Focus on whether purchasing power keeps pace with inflation.

If your raise is specifically performance-based, see What Is a Merit Raise? for a more detailed explanation.

Is a 3% raise good in 2026?

A 3% raise is close to current U.S. merit-budget benchmarks, so it may be fairly typical for a routine annual review. But “typical” and “good” are not the same thing. If inflation is high, your purchasing power may barely improve. If you earned a major promotion or took on significantly more responsibility, 3% may feel low.

On a $65,000 salary, a 3% raise adds $1,950 per year and increases salary to $66,950. See our full 3% raise breakdown.

Is a 5% raise good in 2026?

A 5% raise is above the national merit-budget benchmark reported by Mercer and sits near the upper end of the broad 3% to 5% annual-pay range described by Indeed. For a routine annual review, that can be a comparatively strong increase. For a promotion, however, you should compare it with promotion-specific pay data instead of a normal annual raise.

On a $65,000 salary, a 5% raise adds $3,250 per year and increases salary to $68,250. See What Is a 5% Raise? for monthly, biweekly and hourly examples.

What about a promotion raise?

A promotion raise is different from a routine merit increase because the employee is moving into a role with greater responsibility or scope. Mercer’s December 2025 compensation planning survey projected an average 8.7% pay increase for promotions in 2026. That figure is a benchmark, not a rule, and actual promotion raises vary widely by company, role, salary band and market demand.

Source: Mercer 2026 compensation planning survey

Raise percentage examples on a $65,000 salary

Raise	Annual increase	New salary	Monthly increase
2%	$1,300	$66,300	$108.33
3%	$1,950	$66,950	$162.50
4%	$2,600	$67,600	$216.67
5%	$3,250	$68,250	$270.83
8%	$5,200	$70,200	$433.33
10%	$6,500	$71,500	$541.67

A good raise should also be compared with inflation

Your employer pays you a nominal raise, but what matters for purchasing power is your real raise after inflation. A 4% salary increase does not necessarily mean you can buy 4% more if prices are also rising.

The more precise real-raise formula is:

Real raise = ((1 + nominal raise) ÷ (1 + inflation rate) − 1) × 100

For example, a 5% raise with 3% inflation produces real purchasing-power growth of about 1.94%, not a full 2% and not the full 5%.

How to judge whether your raise is good

• Compare with the reason for the raise. Annual, merit and promotion increases have different benchmarks.
• Check inflation. A nominal raise can still produce weak real income growth.
• Compare with market pay. A raise can look large but still leave you below the market rate for your role.
• Look at total compensation. Bonus, retirement contributions, equity and benefits can affect the overall value of an offer.
• Consider new responsibilities. A promotion or major role expansion should be judged differently from a routine review.

How to calculate your raise percentage

If you know your old and new salary, calculate the raise percentage with:

((New salary − Old salary) ÷ Old salary) × 100

For worked examples, see How to Calculate Salary Increase Percentage. If you are using that percentage to prepare a request to your manager, see our Salary Increase Request Letter examples and templates.

Frequently asked questions

Is 3% a normal raise in 2026?

It is close to current U.S. merit-budget benchmarks. Whether it is good for you depends on performance, inflation, market pay and whether your role changed.

Is 5% a good annual raise?

For a routine annual review, 5% is above the average merit-budget benchmark reported for 2026. For a promotion, compare the increase with promotion-specific benchmarks instead.

Is 10% a good raise?

A 10% raise is substantially above normal annual merit-budget levels. It may occur with promotions, market corrections, retention adjustments or unusually strong performance, but the context matters.

Should a raise beat inflation?

If your goal is to improve purchasing power, your salary growth needs to exceed inflation over time. A raise that only matches inflation roughly preserves purchasing power before taxes and changes in personal expenses.

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Check your own raise: Use the RaiseDelta Salary Increase Calculator to compare your new salary, paycheck increase, real raise after inflation and long-term salary growth.