Quick Answer
A typical annual raise in recent years has run about 3–4.5%. A raise at that level is average; 5%+ is strong and usually beats inflation; 10%+ typically means a promotion or market correction. The real test isn't the percentage alone — it's whether your raise exceeds the inflation rate, because only then does your buying power actually grow. After taxes, you keep about 65–80% of any raise.
"Is my raise any good?" is a hard question to answer in a vacuum. The number only means something once you compare it to the average — and to inflation. Here's the context to judge your raise.
How raises stack up
| Raise | How it rates |
|---|---|
| 0–2% | Below average — likely losing ground to inflation |
| 3–4.5% | Average — the typical annual raise range |
| 5–7% | Strong — usually beats inflation, a real gain |
| 10–20%+ | Promotion, market correction, or new role |
General ranges based on recent US merit-increase trends; your industry and employer vary.
The only test that matters: vs. inflation
Real raise = your raise − inflation. A 4% raise in a 3% inflation year is a real ~1% gain. A 3% raise in a 3% inflation year is flat. Always compare your percentage to the current inflation rate to know if you actually got ahead.
What affects your raise
- Performance: top performers often get a larger share of the merit budget.
- Industry & role: high-demand fields raise faster than others.
- Negotiation: asking well can move you above the default increase.
Want more? See how to negotiate a raise and COLA vs. merit raises. Then see what your raise adds after taxes and run it through the salary increase calculator.