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Is a 5% raise good?

Updated

Yes, in most cases: a 5% raise is above the 3.5% employers plan for 2027 and above inflation (3.7% in the 12 months to September 2026), so it buys 1.3% more. It is not enough if your pay is more than 5% below the median for your job and city, or if it comes with a promotion.

5% in dollars

A 5% raise on common salaries
SalaryPer yearPer month
$50,000$2,500$208
$75,000$3,750$313
$100,000$5,000$417

5% compared with

What to compare a raise with
BenchmarkRateSource
Employers' 2027 raise budgets3.5%Mercer, Payscale, Conference Board, Salary.com
Inflation, 12 months to September 20263.7%BLS, CPI-U
Pay growth of people who changed jobs4.7%Atlanta Fed, September 2026

When 5% isn't enough

  • You are well below the market. Example: an accountant in the Austin area paid $75,000. The median there is $83,120, 10.8% more. 5% leaves a gap.
  • It comes with a promotion. Compare your new pay with the median for the new job, not with the raise budget.

Is 5% too much to ask for?

No. It is 1.5 points above the average budget. Bring the market number and three specific wins. How to get them.

See where your pay stands for your job and city. Takes 30 seconds. Free, no sign-up.

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Questions

Is a 5% raise good for a promotion?

Compare your new pay with the median for the new job in your city. If 5% leaves you below it, ask for the median.

Is a 5% raise standard?

It is above standard. Employers plan 3.5% on average for 2027, and merit budgets are 3.0 to 3.2%.

Sources

U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics, May 2025, www.bls.gov/oes. BLS.gov cannot vouch for the data or analyses derived from these data after the data have been retrieved from BLS.gov.