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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.

For WorldatWork Members ;Health Insurance Selection Checklist for Employees , Workspan Daily Plus+ article; ;Considerations to Manage the Costs of GLP-1 Coverage , Workspan Daily Plus+ article; ;Checklist: Evaluating Benefits for Chronic Health Conditions , Workspan Daily Plus+ article; ;Benefits Strategy Guide , tool; ;Respect-Centered Global Benefits Audit , tool; For Everyone ;Business Group on Health Predicts 9% Higher Healthcare Costs in 2026 , Workspan Daily article; ;Mercer: Health Benefit Cost Jump Will Hit 15-Year High in 2026 , Workspan Daily article; ;Rising Healthcare Costs Forcing Employers to Rewrite Their Game Plan , Workspan Daily article; ;Healthcare Cost Projections Necessitate TR Strategy Updates , Workspan Daily article; ;A Prescription for Rising Drug Costs , Workspan Daily article; Global health insurance costs are projected to rise by more than 10% next year, according to WTW’s 2026 Global Medical Trends report .

WTW estimated such changes could reduce the projected 2026 cost increase to 8%.

If the CEO is paid 400 times as much as the average employee (not uncommon in the U.S. today), that may project an image that does not appeal to many people, especially those who occupy lower-paid positions.

Dell also instituted early, measurable goals for vendors that rely on data-driven assessments to drive accountability and developed a cardiometabolic program designed to manage growing chronic health concerns.

Allowable Expense Examples Physical wellness Gym membership, fitness trackers, yoga classes, nutrition coaching, greens fees for golf, ergonomic home office equipment Financial wellness Financial planners, identity theft protection, pet insurance premiums Emotional wellness Mental health apps, meditation classes, wellness retreats, park passes Family wellness Eldercare or backup childcare, summer camps, adoption fees, tutoring, home organization or deep cleaning services, pet sitting/dog walking, meal delivery services Adult learning Non-degree tuition, books, non-core job training/certifications, foreign language learning, art classes Choose the categories that best support the purpose of your plan.

Greene: Our survey revealed that 97% of executive benefits decision-makers are concerned about the economy.

Other highlights from the Mercer report include: Survey respondents within the high tech and life sciences industry sectors project merit-based salary budget increases of 3.5%, above the 3.3% average, while the healthcare services, retail and wholesale, and consumer goods sectors project lower-than-average increases of 3%, 3.1% and 3.2%, respectively.