Average raise in 2027, by industry
Updated
The average U.S. salary increase budget for 2027 is 3.5% (Mercer, Payscale, The Conference Board, Salary.com). By industry, budgets run from 2.5% in telecom to 4.5% in aerospace and defense and in business services (Payscale).
2027 budgets, survey by survey
| Survey | Total 2027 | Merit 2027 | Source date |
|---|---|---|---|
| Mercer (1,001 U.S. organizations) | 3.5% | 3.2% | Aug 31, 2026 |
| Payscale (1,266 organizations) | 3.5% | 3.0% | Aug 6, 2026 |
| The Conference Board (median) | 3.5% | 3.1% | Sep 3, 2026 |
| Salary.com (818 organizations) | 3.5% | 3.2% | Oct 1, 2026 |
| WTW (1,650 U.S. organizations) | 3.4% | n/a | Jul 17, 2026 |
| WorldatWork (1,799 organizations) | 3.6% | n/a | Jul 16, 2026 |
The total budget covers every pay increase: merit raises, promotions and market adjustments. The merit budget is the part tied to performance reviews.
2027 budgets by industry
| Industry | Payscale | Salary.com |
|---|---|---|
| Aerospace and defense | 4.5% | n/a |
| Business services | 4.5% | 4.1% |
| Legal services | 4.2% | n/a |
| Pharma and biotech | 4.0% | n/a |
| Energy and utilities | 3.5% | 3.9% |
| Manufacturing | 3.6% | 3.6% |
| Financial services | 3.4% | 3.8% |
| Healthcare | 3.2% | 3.5% |
| Technology | 3.4% | 3.4% |
| Retail | 3.3% | 3.3% |
| Government | 3.0% | n/a |
| Telecom | 2.5% | n/a |
Mercer publishes merit budgets by industry, the performance part only: high tech 3.8%, banking 3.7%, energy, insurance and non-financial services 3.6%, healthcare and retail 3.0%, consumer goods 2.9%.
The Conference Board gives a range: 3.7% in technology, telecommunications and information services, down to about 3.0% in wholesale and retail trade and in government, nonprofit and education. Salary.com figures are for exempt (salaried) employees; its retail figure includes wholesale.
What it means for your raise
An industry budget is an average. Your number depends on where your pay stands for your job and city. If you are below the median, the gap matters more than the budget. How much to ask for.
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Check my paySources
- Payscale Salary Budget Survey, reported by WorldatWork (1,266 organizations), August 6, 2026
- Mercer, US employers stick with moderate pay increases for 2027 (QuickPulse, 1,001 U.S. organizations), August 31, 2026
- The Conference Board, U.S. Salary Increase Budgets 2026-2027, September 3, 2026
- Salary.com 2026-2027 report, reported by WorldatWork (818 organizations), October 1, 2026
- WTW Salary Budget Planning Report, reported by WorldatWork (1,650 U.S. organizations), July 17, 2026
- WorldatWork 2026-2027 Salary Budget Survey (1,799 organizations), July 16, 2026