How much to ask for a raise depends on where your pay sits against the market: an increase near the 3.5% average employer budget is routine, while a larger ask needs benchmark and results evidence.
The sections below explain how employer pay budgets work, how to find your market value and how to turn both into one defensible figure. For the wider context, see how to plan your career path.
How employer raise budgets set the ceiling
Most raises come out of a fixed pay budget, so the typical increase is decided before you ask. Payscale’s survey, reported by WorldatWork, shows U.S. employers forecasting a 3.5% average salary increase budget for 2026, slightly below the 3.6% average actual increase they provided in 2025. Raises are common: 84% of all workers are scheduled to receive a base pay increase, and 87% of organizations use merit increases to recognize employees.
This explains why a request that matches the budget rarely raises eyebrows, and why a request well above it has to rest on your own evidence. Most U.S. organizations (68%) expect budgets to remain the same, so there is no sign of a bigger pool that would lift everyone. Budgets also differ by sector, as the table shows.
| Benchmark | Value | Planning use |
|---|---|---|
| Average salary increase budget, U.S., 2026 forecast | 3.5% | The routine merit level your manager is likely working from. |
| Average actual increase, U.S., 2025 | 3.6% | What employees actually received last cycle; a reasonable floor for a strong performer. |
| Technology (including software) | 4.0% actual in 2025; 3.5% forecast for 2026 | Shows that sector budgets can move even when the overall average holds. |
| Healthcare and social assistance | 3.3% actual in 2025; 3.5% forecast for 2026 | Use your own industry line, not the all-industry average, when one is available. |
| Hays advised range for a raise request | 5% to 20% | The outer frame for a negotiated ask; asking above 20% can give a bad impression. |
Budget figures come from Payscale’s survey as reported by WorldatWork, and the request range is Hays’ advice in its guide to asking for a pay raise.
The gap between a budget figure and an advised request range matters. The budget describes what an employer hands out by default; the range describes what employees negotiate when they bring a case. Your task is to decide which of the two situations you are in.
Finding your market value
Market value is what employers pay for your position, experience and location, and it is the most objective lever you have. Indeed advises researching the average salary for your position, experience level and city, and notes that the size of an organization and its industry can change the salary. A salary benchmark from a large firm in a different industry can therefore mislead you in either direction.
Where to look
- Salary guides: Hays points to its Salary Checker or Salary Guide as an excellent source for salary research in Canada, which makes an annual guide a sensible first stop for role-by-role ranges.
- Job postings and industry reports: these help you match comparable roles at similar organizations, filtered by city and experience.
- Sector budget data: use the industry rows from salary surveys to see whether your field is running above or below the overall average.
What the result tells you
If your pay is trending below the market level, Robert Half notes that this gives you objective leverage. In that case the ask is a market adjustment rather than a reward, and the number can reasonably sit above the routine merit budget. If your pay already sits at or above the benchmark, the case rests on results, and a figure near the budget is the realistic target.
Cost of living is context, not a benchmark. Payscale’s commentary says inflation is starting to creep back up as economic uncertainty mounts, which may make managers receptive, but a market comparison and documented results give a manager something specific to approve.
Building the performance evidence
A raise request needs outcomes a manager can verify. Robert Half suggests thinking about how your work has saved time, reduced costs or improved results, and Indeed adds that you should include exact measurements where possible. Pull these from your last performance review, project reports and feedback you have received.
The stakes are real for employees who stay silent. Payscale’s survey found that 1 in 3 employees (32%) feel their pay does not reflect their performance, and Robert Half found that 46% of professionals said their 2024 bonus was smaller than expected. Waiting for the review cycle to correct this on its own is a gamble.
Write the evidence as short statements of result, not a list of duties. Review-style phrasing helps; Quantity Of Work Performance Review Phrases: 50 Ready-To-Use Lines For 2026 – Gozaik and 100+ Job Knowledge Performance Review Phrases and Examples (2026) – Gozaik offer wording you can adapt to describe output and expertise. Then put your market research and results into the concise one-page summary Robert Half recommends bringing to the conversation.
Turning the data into one number
The method below converts your research into a specific figure without guesswork. Work through the stages in order.
- Locate yourself against the benchmark. Compare your current base pay with the market range for your role, experience and city. Decide whether you are below, at or above it.
- Set the floor from the budget. Start from the 3.5% average budget Payscale reports for 2026. This is the level your manager can approve with the least friction.
- Add the market gap if you are below it. If the benchmark shows you are underpaid, build the gap into the ask, so the request reflects the distance to market rather than only a yearly increase.
- Adjust for results. Strong, measurable outcomes support a figure above the budget. Modest or hard-to-prove results support a figure near it.
- Check it against the outer frame. Hays advises a request between 5% and 20% and warns that more than 20% can give a bad impression. Indeed’s sample letter asks for a 5% base increase tied to the average salary, which shows what a market-anchored request looks like in writing.
- State one target and a lower acceptable point. Name the figure you will ask for, and decide privately the lowest outcome you would accept before you walk in.
Judgement matters at the third and fourth stages. A market gap is the strongest reason to ask above the budget, because the manager can verify it independently. A request that leans only on effort or rising living costs is easier to decline. Keep the ceiling of 20% as a boundary, not a target: most well-supported asks will land well inside the range.
Timing and presenting the ask
The best time to ask is when your evidence is fresh and your manager can still act on it. Indeed notes that a request can be sent during an annual review, which is a natural moment because your performance is already under discussion. A recent major result is another good trigger, since the outcome is easy to point to.
Because most U.S. organizations expect their pay budgets to stay the same, a request that arrives after budgets are fixed has little room to move. Raise the subject early enough for your manager to take it into planning.
In the conversation
Book a dedicated meeting rather than raising it in passing. Lead with your results and market comparison, then state your figure plainly and stop talking so your manager can respond. Hand over the one-page summary so the case can travel to whoever approves pay.
If the answer is not yet
Robert Half advises asking what milestones would warrant an increase and agreeing on a timeline for review. That converts a refusal into a dated plan you can hold the manager to. A follow-up email that restates the request and the agreed timeline keeps the record clear.
Frequently asked questions
How much of a raise should I ask for?
Ask for a figure grounded in your market gap and results. Hays advises a range of 5% to 20%, with asks above 20% risking a bad impression; being at market with solid results points to the lower end.
What is a typical raise percentage?
Payscale reports a 3.5% average U.S. salary increase budget for 2026, after a 3.6% average actual increase in 2025.
How do I research my market value?
Compare the average salary for your position, experience level and city, and account for the organization’s size and industry, as Indeed advises. Salary guides from recruiters, such as the Hays Salary Guide, give role-level ranges.
When is the best time to ask?
An annual review is a natural moment, and a recent major result also works. If your manager says no, agree on milestones and a review date instead of leaving the topic open.
