A new survey of corporate America reveals that base salary budget increases for 2025 are projected to continue close to the fastest pace in two decades. Salary increase budgets are a good proxy for the average raise a worker receives in a given year.
Employers, on average, report planned salary increase budgets of 3.9%—a slight uptick from actual growth of 3.8% in 2024. That’s according to US Salary Increase Budgets 2024-2025, a new report from The Conference Board.
The report features comprehensive survey data from 300 compensation leaders on what businesses across the economy are budgeting for annual increases in base pay. Among the report’s key findings:
Amid a still-tight labor supply, projected 2025 base salary budget increases continue at close to the fastest pace in two decades.
Employers, on average, report planned salary increase budgets of 3.9% for 2025.
This is down from actual increases of 4.4% in 2023, but slightly up from actual increases of 3.8% in 2024.
