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As companies are setting their 2025 budgets — and creating their next five-year plans — now is the time for total rewards professionals and finance departments to put their heads together and craft sustainable strategies that take continued health cost increases into account, according to a new CFO survey by Mercer.

Previous 2025 salary surveys revealed the following: ;WorldatWork (released July 31): 3.8% mean salary increase budgets for 2025; 3.9% actual mean increase budgets in 2024.; ;Payscale (July 31): 3.5% average pay raises for 2025; 3.6% actual increases in 2024.; ;Conference Board (Sept. 8): 3.9% average salary increase budgets for 2025; 3.8% actual budgets in 2024.; ;WTW (Dec. 18): 3.7% salary increase budgets for 2025; 3.8% average increase budget in 2024.; The latest figures from Mercer reflect a decline from November 2024 projections , where U.S. employers anticipated 3.3% for merit increases and 3.7% for total increases for non-unionized employees.

;WorldatWork (released July 31): 3.8% mean salary increase budgets for 2025; 3.9% actual mean increase budgets in 2024.; ;Payscale (July 31): 3.5% average pay raises for 2025; 3.6% actual increases in 2024.; ;Conference Board (Sept. 8): 3.9% average salary increase budgets for 2025; 3.8% actual budgets in 2024.; ;Mercer (Dec. 10): 3.7% average total increase budgets for 2025; 3.7% actual average increases in 2024.; Factors Driving Higher and Lower Budget Forecasts If the WTW prediction for 2025 holds true, salary increases will remain at a fairly robust rate by historic standards (using the pre-pandemic norm of 3% as a measuring stick).

2020-2021 Salary Budget Survey Select option: Non-Member Non-Member Price Member Price Member Price - + Add to Cart Unavailable To be placed on the waiting list or inquire about other sessions or products, please contact our Customer Experience Team.

For WorldatWork Members Salary Budget Planning Guide , tool;Salary Budget Planning: Using Market Data to Formulate a Recommendation Report , tool;Compensation Structure Policies and Practices , research;The Potential Dangers of Aggregated Statistics , Journal of Total Rewards article;A New Way to Evaluate Performance-Compensation Strategy , Journal of Total Rewards article; For Everyone 2025-2026 Salary Budget Survey , research;WorldatWork: 2026 Salary Increase Budgets Project U.S., Global Caution , Workspan Daily article;Workers Are Seeking Greener Pastures, and Higher Pay Is the Driver , Workspan Daily article;Salary Budget Planning Playbook: Data, Strategy and Insights for the Year Ahead , on-demand webinar;Essentials of Compensation Management , course; U.S. employers anticipate having 3.6% higher salary increase budgets in 2026, the same year-over-year increase percentage they actually secured and provided in 2025, according to the results of the

This year’s survey includes base salary increases and merit budgets for 19 countries including in-depth salary budget insights in the United States (U.S.), Canada, India and the United Kingdom.

7,422 Inflation, Labor Market Drive Merit Pay Increases for 2024 7,154 Reports: 2024 Pay Increases Projected to Exceed Inflation 7,015 Conference Board Projects 3.9% Salary Increase Budgets for 2025 6,340 Mercer Projects 3.6% Total Salary Increase Budgets in 2025 4,760 Global Salary Increase Budgets Contracting; U.S.

.; Editor’s Note: Additional Content For more information and resources related to this article, see the pages below, which offer quick access to all WorldatWork content on these topics: ;Employee Experience; ;Finance and Budgeting; ;Organizational Performance; ;Well-Being; #1 Total Rewards & Comp Newsletter Subscribe to Workspan Weekly and always get the latest news on compensation and Total Rewards delivered directly to you.

WorldatWork’s January 2022 “ Salary Budget Quick Poll ” revealed that organizations are increasing their previously planned salary budgets to address the competitive labor market and inflation.

This year’s survey includes base salary increases and merit budgets for 18 countries including in-depth salary budget insights in the United States (U.S.), Canada, India and the United Kingdom.