Before you step into that salary discussion with your boss or HR, you might find yourself wondering, “How much of a raise should I ask for?” It’s a delicate balance—ask for too little, and you might undervalue yourself; ask for too much, and you risk seeming out of touch.
Understanding the factors that influence raises and how to calculate an appropriate figure can make all the difference in your negotiation. In this article, we’ll explore how you can confidently and strategically request the raise you deserve.
“How much of a raise should I ask for?” Here's what to consider
Raises are a natural part of career growth. If you’re taking on more responsibilities, achieving your goals, or contributing significantly to the company’s success, you have every right to ask for fair compensation.
So, how to figure out what pay increase to request? Consider the following:
1. Your performance and contributions
Reflect on your accomplishments. Have you exceeded your job expectations, taken on leadership roles, or significantly improved processes? Your contributions are your strongest justification for a raise.
2. The standard raise percentage
Payscale’s 9th Annual Salary Budget Survey reveals that average pay increases dropped to 3.6% in 2024, down from 4% in 2023, signaling a softer labor market. Looking ahead, U.S.-based employers are budgeting for 3.5% raises for 2025. However, exceptional performance or a promotion might warrant a higher increase.
3. Industry standards
Research salary benchmarks for your role, industry, and location. Websites like the Bureau of Labor Statistics and Salary.com can help you compare your current salary to what others in similar positions are earning.
4. Inflation and cost-of-living pay rise
You don't need to wait for a promotion to have a reason for a raise. When the inflation rate is increasing, you might consider asking for a cost-of-living pay rise to ensure your salary maintains its purchasing power.
What is a good raise percentage?
An average raise percentage depends on the context.
- Typical annual raise: According to 2024 reports, 3% to 4%
- Exceptional performance or promotion: 10% to 20%
- Inflation adjustments: Based on the current inflation rate (often 2% to 3% annually)
- Teachers and other professions: Knowing what is a good percent raise for teachers depends on district budgets but generally aligns with inflation and tenure.
How to calculate a raise percentage
Let's get to the math side of the question. Knowing how to calculate a raise percentage can help you set realistic expectations.
Here’s a simple formula to calculate your pay raise:
- Determine your current annual salary.
- Decide on the percentage increase you’re aiming for.
- Multiply your salary by the percentage (expressed as a decimal).
For example, if you make $50,000 annually and want a 10% raise:
$50,000 x 0.10 = $5,000. Your new salary request would be $55,000.
You can also use a salary increase percentage calculator online to simplify the process.
How to calculate inflation adjustments for salary
To calculate an inflation adjustment for your salary, start by finding the current inflation rate (available through government or financial sources). In 2024, it fluctuated around 2.5%. Multiply your current salary by the inflation rate (expressed as a decimal).
For example, if your salary is $60,000 and the inflation rate is 3%, the adjustment would be $60,000 x 0.03 = $1,800. Add this amount to your salary to maintain your purchasing power.
The right timing: When to ask for a raise
Your request's timing can directly affect whether your raise will be approved. “Timing is everything in life,” says career advisor Melissa Trager. She recommends asking for a raise around performance review conversations and do so at a time where you have your manager's undivided attention in a scheduled 1:1 meeting.
“Come to the meeting prepared, with information around all that you have accomplished at work, how you have excelled in the role, and data points surrounding market rates,” Trager says. “Use a polite and respectful tone, making sure that you do not demand the raise but instead build a business case for it.”
So, when should you ask for a raise? Consider these scenarios:
- After a year of strong performance: The average annual raise after one year of work is often tied to annual performance reviews.
- When your role expands: If your workload seems double but your pay hasn’t increased, it’s time to address the imbalance.
- During favorable company conditions: If the company has reported strong financial performance or profits, it’s an ideal time to make your case.
- When inflation spikes: Ask for a raise when inflation rate is increasing to align your pay with the rising cost of living.
Tips for preparing to ask for a raise
Asking for a raise can feel nerve-wracking, but it’s also an empowering opportunity to advocate for yourself. To help you prepare, here are some practical steps to make the process smoother and your request more effective.
- Research thoroughly. Understand the average increase in wages per year for your role, industry, and location.
- Document your achievements. Create a list of your key accomplishments and contributions to the company.
- Practice your pitch: Rehearse how you’ll ask for the raise, focusing on facts and the value you bring.
- Be realistic. While it’s tempting to aim high, an unreasonable request might backfire. Base your ask on data and your performance.
- Anticipate objections. Be ready to address concerns your manager might have, like budget constraints or market conditions.
What if you overshoot your raise request? Here's how to respond
If your raise request is declined or deemed too high, don’t panic. Politely ask for feedback and inquire about what you can do to earn a raise in the future. Use this opportunity to establish clear goals with your manager for future salary discussions. Sometimes, though, the issue isn’t your performance but the company’s ability—or willingness—to pay you what you’re worth.
If that’s the case, it might be time to evaluate your options. “If a raise isn't possible, a company can offer you stock options, additional paid time off (PTO), or a title change,” Trager says. “All of these options are of nominal cost to them and can make an impact for recruiting for your next role and the payoff down the line.”
Consider switching jobs
Staying in a role where you feel undervalued can hold you back financially and professionally. “The best time to secure a significant pay bump is when you are switching to a new company,” Trager says. If you’ve repeatedly proven your worth but still can’t secure a meaningful raise, explore opportunities elsewhere.
“I would recommend doing market research by looking at similar job postings in title and responsibility to your current role and seeing what the posted salaries are to determine where you feel your pay should be,” she says.
Switching jobs doesn’t just offer a chance for better pay—it can also open doors to new challenges, responsibilities, and growth. Before making the leap, ensure you have a solid understanding of your market value and are moving toward a role that aligns with your goals. Remember, advocating for yourself doesn’t end with one conversation. Whether you choose to stay or go, you’re taking steps toward a more fulfilling and financially rewarding career.
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FAQs
How much can I ask for a raise?
How much you can ask for depends on your performance, market trends, and company conditions. A typical raise percentage is 3–4%, but if you’ve taken on significant new responsibilities or exceeded expectations, you might consider asking for 10–20%.
How often should you get a raise?
Raises often align with annual performance reviews, so once a year is standard. However, if your role or workload has significantly changed, it’s reasonable to request a raise outside the regular review cycle.
Is it normal to get a raise after the first year?
Yes, you can receive a raise after your first year, especially during annual performance reviews. The average raise after one year of work typically aligns with the standard raise percentage of 3–5%.
What is a good raise?
A good raise reflects your performance and market standards. For most employees, a 3–4% increase is typical, while 10–20% is excellent for promotions or outstanding contributions.
What should my salary be?
Your salary should reflect your experience, skills, and the market value of your role. Use online salary comparison tools to benchmark your earnings.
What’s considered a bad salary?
A “bad salary” is subjective but usually means earning significantly below the market rate for your role, location, and experience. If you’re struggling to cover basic expenses or feel undercompensated compared to peers, it’s worth exploring your options or discussing a raise.