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In addition, the full report — covering base salary increases and merit budgets for 22 countries and in-depth salary budget insights for the U.S., Canada, India and the United Kingdom — is available for purchase.

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.

WTW’s latest Salary Budget Planning Report found overall salary increases in the U.S. are forecasted to rise to 4.6% in 2023, up from an actual spend of 4.2% this year.

The Salary Budget Survey helps you: Gain a Competitive Edge: Rely on insights gathered by the leader in compensation and Total Rewards, providing you with the most trustworthy and up-to-date data available.; Attain a Global Perspective: Benchmark your organization against the best with data from 22 countries including the United States, Canada, India, and the United Kingdom.; Conduct a Comprehensive Compensation Analysis: Easily assess salary structures, promotional budgets, equity adjustments, lump sum awards, and variable pay, all in one authoritative report.; Generate Streamlined Reporting: Our Online Reporting Tool allows you to effortlessly customize and drill down to create U.S. and Canada tailored reports for your industry, geographic area, organizational size and/or revenue.; Recognized as the definitive gold standard in compensation studies, trusted and relied upon by compensation professionals worldwide, WorldatWork’s Salary Budget survey has helped organizations benchmark effectively

Inflation’s Influence on Compensation The last time we saw a U.S. salary increase budget number at or above 4% was 2007, and the only time we have seen more than a 1% increase in salary budgets since we began tracking them in 1980.

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: ;Equitable and Diverse Workplaces; ;Employee Benefits; ;Employee Compensation; ;Finance and Budgeting; ;Organizational Performance; #1 Total Rewards & Comp Newsletter Subscribe to Workspan Weekly and always get the latest news on compensation and Total Rewards delivered directly to you.

Where Wages Are Rising Twenty-one states raised their per-hour minimum-wage rate on Jan. 1: ;Alaska: $11.91 (increased from $11.73); ;Arizona: $14.70 (from $14.35); ;California: $16.50 (from $16); ;Colorado: $14.81 (from $14.42); ;Connecticut: $16.35 (from $15.69); ;Delaware: $15 (from $13.25); ;Illinois: $15 (from $14); ;Maine: $14.65 (from $14.15); ;Michigan: $10.56 (from $10.33); ;Minnesota: $11.13 (from $10.85 for large employers, $8.85 for small employers); ;Missouri: $13.75 (from $12.30); ;Montana: $10.55 (from $10.30); ;Nebraska: $13.50 (from $12); ;New Jersey: $15.49 for most employers (from $15.13 for most employers); ;New York: $15.50 (from $15); ;Ohio: $10.70 (from $10.45); ;Rhode Island: $15 (from $14); ;South Dakota: $11.50 (from $11.20); ;Vermont: $14.01 (from $13.67); ;Virginia: $12.41 (from $12); ;Washington: $16.28 raising to $16.66 (from $16.28); Changes also occurred at the city level in several states: ;Arizona: Flagstaff, Tucson; ;California

Based on projections from more than 1,700 U.S. employers, the consulting firm’s survey report shows 2026 will be the fourth consecutive year of elevated health benefit cost growth following a decade of moderate annual increases averaging only about 3%, signaling mounting pressure on employers’ healthcare budgets.

For WorldatWork Members 2025-2026 Salary Budget Survey , research;Total Rewards Model: A Guide , tool;Total Rewards Operations Playbook , tool;Navigating TR’s Next-Gen Career Paths , Workspan Magazine article; For Everyone Total Rewards ’26 , conference;Salary Budget Planning Playbook: Data, Strategy and Insights for the Year Ahead , on-demand webinar;Understanding the Total Rewards Regulatory Landscape , course;Market Pricing and Competitive Pay Analysis , course; What was top-of-mind with Workspan Daily visitors and their organizations during 2025?

As organizations plan their budgets in 2026, they are facing several challenges, from tighter budgets and a cooling labor market to the acceleration of AI adoption.