What counts as a good raise right now
Across the US, UK, Canada and Australia, employer salary-increase budgets have settled in the 3–4% range for 2025–2026 after the 4.5%+ spike of 2022–2023. That budget figure is the average across a whole workforce, so it is the number to beat, not the number to accept:
- Cost-of-living / standard merit increase: 2.5–4%. Keeps pace with inflation, changes nothing about your position.
- Strong performance review: 5–7%. This is what a top-rated performer typically receives where budgets allow discretion.
- Promotion: 10–15%. Below 10% for a title change with real added scope is worth questioning.
- Changing employers: 10–20%, and historically the fastest route to a large increase.
- Market correction after a title or scope change: can exceed 20%, but usually requires a formal re-banding.
The percentage is what matters, not the amount
A $3,000 raise is 6% on $50,000 and 2% on $150,000 — one beats inflation comfortably, the other is a real-terms pay cut. The inverse mode above exists for exactly this: enter what you earn now and what you have been offered, and it tells you the percentage you are actually being given. Compare that figure against inflation for your country first, and against your market rate second.
How the pay periods are worked out
- Monthly — annual ÷ 12.
- Every 2 weeks (biweekly) — annual ÷ 26. Common in the US and Canada; note this is not the same as twice-monthly (÷ 24), which produces a larger cheque 24 times instead of 26.
- Weekly — annual ÷ 52.
- Hourly — annual ÷ (52 × your hours per week). At 40 hours that's 2,080 hours a year; UK and Australian full-time contracts are more often 37.5 or 38 hours, which raises the effective hourly rate.
All figures are gross — before income tax, national insurance, superannuation, 401(k) contributions, health premiums or student loan deductions. Your take-home increase from any raise will be meaningfully smaller than the gross figure, and a raise can push part of your income into a higher marginal band.
Asking for one
Bring three things to the conversation: evidence of what you delivered with numbers attached, a market rate for your role in your city from a salary survey or levels data, and a specific number rather than a range — name a range and the bottom of it is usually where you land. Time the request to your employer's budget cycle, which is usually three to four months before the review date, not during the review itself. If the answer is no, ask what specifically would make it a yes and when it will be revisited, then get that in writing.
FAQ
What counts as an average pay raise right now?
Employer salary-increase budgets across the US, UK, Canada and Australia have settled around 3 to 4% for 2025 to 2026, down from the 4.5%-plus spike of 2022 to 2023. A strong performance review typically pays 5 to 7%; a promotion with real added scope, 10 to 15%.
Are these figures before or after tax?
Before. Every number here is gross, so it ignores income tax, National Insurance, superannuation, 401(k) deferrals, health premiums and student loan repayments. A raise can also move part of your income into a higher marginal band, so the take-home increase is always smaller than the headline.
Why is biweekly pay not the same as twice a month?
Biweekly is 26 payments a year, annual divided by 26; semi-monthly is 24, annual divided by 24. The annual total is identical but each cheque is not, and two months a year have three biweekly paydays. Biweekly is the common pattern in the US and Canada.
How do I convert a salary to an hourly rate?
Annual pay divided by 52 times your contracted weekly hours. At 40 hours that is 2,080 hours a year. UK and Australian full-time contracts are more often 37.5 or 38 hours, which produces a higher effective hourly rate on exactly the same salary.