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To attract and retain quality workers, employers must remake the pillars of total rewards in ways that recognize and reflect the evolving complexity of their workforce.

What’s more, the survey revealed this level is expected to be maintained, as a 4.1% average increased budget is projected for 2023.

Engineering majors are expected to be the Class of 2024’s top-paid graduates, and their projected average salary of $76,736 represents a 3.1% increase over last year’s projections.

Salary Increase Budgets Reach 20-Year High Annual WorldatWork Survey Reveals Average Salary Increase Budgets Were 4.1% in 2022 and Projected at 4.1% in 2023.

For WorldatWork Members ;Don’t Drown in the Data: Diving into Your First Salary Survey , Workspan Daily Plus+ article; ;How to Reward Top Performers When Pay Raises Aren’t Possible , Workspan Daily Plus+ article; ;Salary Budget Planning Guide , tool; ;Using Market Data to Formulate a Recommendation Report , tool; ;Top Salary Budget Surveys , tool; ;Merit Matrix: Budget Distribution Projection , tool; ;2025-2026 Salary Budget Survey , research; For Everyone ;Compensation Report Points to Gaps in Perceived Fairness, Training , Workspan Daily article; ;Constrained Budgets, AI Among Top Influencers Shaping Comp , Workspan Daily article; ;Report Results Smack of ‘Peanut Butter’ Pay Raise Approach for 2026 , Workspan Daily article; Annual salary increases in 2026 paid out slightly below earlier projections, according to the latest Mercer QuickPulse U.S.

Workspan Daily Plus+ article;Considerations to Manage the Costs of GLP-1 Coverage , Workspan Daily Plus+ article;Health Plan Compliance Calendar , tool; For Everyone Healthcare Cost Projections Necessitate TR Strategy Updates , Workspan Daily article;A Prescription for Rising Drug Costs , Workspan Daily article;Most Employers Hold Firm on Well-Being Offerings — But Want Results , Workspan Daily article;As Health Costs Spike, Total Rewards and CFO Collaboration Is Crucial , Workspan Daily article;Employer Healthcare Costs Projected to Hit 10-Year High in 2025 , Workspan Daily article; Employers will need to “make bold and strategic moves” to counter a second year of actual healthcare costs sharply outpacing projections, according to Business Group on Health’s 2026 Employer Health Care Strategy Survey , released Tuesday, Aug. 19.

Due to limited providers and a high demand for care, Segal predicted 2026 medical plan costs will increase by 9% over 2025 levels, marking the highest annual projection in more than a decade.

Merit Matrix: Budget Distribution Projection Save A structured approach to merit increase planning is essential to create consistent, clear merit increase decisions.

Taking a Wider View at Trends WorldatWork’s 2025 U.S. salary increase budget projection displayed similar vantage points to projections released recently by WTW and Payscale .

Key Takeaways Higher-than-projected pay increases.