Employers Eye 3.5% Raises for 2025, According to Payscale Data

 U.S. employers are forecasting an average salary increase of 3.5% for 2025, according to Payscale’s latest survey. This anticipated raise varies across industries. Government employees, along with those in engineering and science, can expect increases exceeding 4.5% and 4.2%, respectively. In contrast, workers in retail, customer service, and education are projected to see raises of just 3.1%.

Ruth Thomas, chief of research and insights at Payscale, attributes the slight reduction in planned salary increases to stabilized inflation and easing labor market conditions. Despite this dip, she notes that the 2025 figures are still above the pre-pandemic baseline of 3% that employees have come to expect.

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