Average Yearly Salary Increase – How Much of a Raise Is Normal?

How much money makes for a good raise? Most people commit to long-term careers under the assumption receive raises for their consistent hard work. For some people, even a small raise makes a big difference. Yet there are still many other people who find the average raise unsatisfactory.

The feeling one’s work is worth more than their current rate is a common feeling among the working class in the United States. In fact, only 55% of workers in the USA believe they are paid enough. Some may be right – factors such as inflation and the increasing cost of living sometimes make a raise almost necessary.

How Much is the Average Yearly Pay Increase?

Obviously, everyone is not paid the same. The average salary raise is typically a percentage of a worker’s current salary. For example, if an employee makes $100,000 per year receives a 10 percent pay raise, they would make an extra $10,000.

In 2017, the estimated yearly pay raise is 3%, the same as 2015 and 2016. This figure is a significant increase from 2009, during which the average pay raise dipped down to only 2.1 percent as a result of the 2008 recession.


An employee’s work ethic often influences how large their raise is. For example, employees who were considered top performers in their organization received a 4.6 raise instead of the usual 2-3 percent.

Raises may not only take place purely in monetary form. Some employees may receive insurance benefits, paid vacation days, gifts from the company and other similar rewards.

How to Increase your Salary


Getting a raise is not always straightforward. Although some people may simply approach their boss, every company may have different guidelines or suggested etiquette.

Raises may be sensitive matters within a company. Be sure to consider what situation your company is in. If your company is facing hard times, wait until it fares better before requesting a raise. Conversely, don’t act entitled to a raise if your company suddenly starts doing well.

Here are some tips on getting a raise:

  • Ask for one
    Employees often miss out on the opportunity for a raise simply because they never ask. Approximately 75 percent of companies currently implement market based pay raise system. This means that your company will likely be willing to give you a raise. Of course, just because most companies can give employees doesn’t mean they always will. Employers are always cutting costs, and raises are reserved for those who take the initiative to ask.You can either ask for a raise in person, or you can request one on paper. Most employers will give you a raise with either method, as long as your case is strong. You can also do both. After approaching your boss, provide a neatly typed letter. Keep it short, but do be sure to include reasons why you believe your ability is worth a raise.
  • Improve your performance
    Is your performance lackluster, or do you simply think it can be better? Employers typically monitor the productive output of their employees, and award raises to the most productive. Being a standout worker in your organization can easily pay off.If you want to be sure you’re worth a raise, ask your boss or another higher-up what qualities they want in an ideal employee. Pay attention to the hardest workers in your company and emulate them.
  • Become even more qualified
    Every career in the world usually advances or changes in some way with every passing year. It always pays off to gain new knowledge and insight into how to work better. Although many companies do give employees access to regular training programs, taking the initiative to learn more yourself can win you big points.
  • Get another job
    Not all companies pay employees equally. You may be unfortunate enough to have landed at a workplace that pinches pennies everywhere, including with employee’s salaries. In this, you can only do so much before you simply turn in your resignation. If your employer refuses to budge on the subject, it may be a good idea to start looking for a more considerate company.In previous years, one could expect 10 to 20 percent more annually after switching jobs. Things are different now. However, if you are confident enough in your ability, making the switch should be easy. In fact, there are some companies who seek out their competitor’s highest performers, luring them in with more lucrative gigs.