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Salary Budget Survey 2021 Follow Up Polls These reports summarize the results of January and February 2022 WorldatWork surveys gathering information about changes to salary increase budgets since data was collected for the 2021-2022 Salary Budget Survey in May and June 2021.

Of the organizations that do budget for promotional increases, the survey found that 40% have separate promotional increase budgets, while 34% include them as part of their “other” increase budget, 22% have them as part of their merit increase budget and 4% allot them as part of their general increase/COLA budget.

ESTABLISHING BUDGETS Establishing annual budgets for pay adjustments involves a consideration of several factors.

According to WorldatWork and Salary.com, most companies do base their budgets on the cost of labor with 15-20% of organizations using a cost of living/inflation-based approach.

As a result, WorldatWork’s “ 2022-23 Salary Budget Survey ” revealed that salary increase budgets reached their highest level in 20 years in the United States, rising to an average of 4.1% in 2022 with a 3.8% median.

In addition to contracting salary increase budgets, this year’s study also revealed that in the U.S. the reported range of salary increase budget amounts is consolidating. 2025 data show fewer extreme budgets, low or high, than in recent years.

Member Tool Access Top Salary Budget Surveys Source 2026 Salary Increase Budget 2025 Actual Increase Budget WorldatWork 3.6% mean 3.7% mean Conference Board 3.4% average 3.4% average Gallagher 3.2% to 3.3% average* 3.8% to 4.0% average* Mercer 3.5% average 3.5% average Payscale 3.5% average 3.6% average Salary.com 3.6% mean 3.6% mean WTW 3.5% average 3.5% average * = job-classification dependent

;Payscale: 3.5% average salary increase budgets for 2026; 3.6% actual average increase budgets in 2025.; (Top-level results from the 2025-2026 Salary Budget Survey report are now available to the general public through this link .

Salary Budget Planning Guide Save Develop an effective salary budget planning approach that aligns budgeting activities with your compensation philosophy plus key economic and business considerations.

WTW’s Salary Budget Planning Survey found employers are budgeting an average increase of 4% in 2024.