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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.

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.

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

Of the organizations that do not include promotional increases in their salary increase budgets, 50% fund the promotional pay increases via vacancy, salary or other savings; 21% pull it out of the merit increase budget; 17% pull it out of the “other” increase budget; and 6% take it out of the general increase/COLA budget (the remainder utilized additional options). 

Workspan Magazine article;Why It’s Time for a Compensation Philosophy Refresh , Workspan Magazine article;Salary Budget Planning Guide , tool;Salary Budget Planning: Using Market Data to Formulate a Recommendation Report , tool; For Everyone 2025-2026 Salary Budget Survey: Top-Level Results , research;WorldatWork: 2026 Salary Increase Budgets Project U.S., Global Caution , Workspan Daily article;Alignment, Market Competitiveness Are TR Leaders’ Top 2026 Priorities , Workspan Daily article;COLA, Currency, Comp: How TR Leaders Are Handling the New World Order , Workspan Daily article;Building a Fair and Compliant Global Compensation Strategy , webinar; The 2026 salary budgets for U.S.

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

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

;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.