Average Annual Raise [2026]: Industry, Demographic, Regional Averages, And More

Research Summary: Everyone appreciates a raise. Whether you’re aiming for a promotion or simply assessing your current compensation, knowing what to expect from an annual raise is essential.

Factors such as your geographic location, industry, and even demographic characteristics significantly influence your average raise. In this article, we explore key insights into average annual raises across the U.S. as of 2026.

According to our comprehensive research:

• The average annual raise in the U.S. is 6.5% as of 2025.

• The average salary increase for those changing jobs is 13.2%, while wage growth stands at 5.4% for those who stay with their current employer.

• Wyoming workers experienced the highest salary increase from 2024-2025, at 10.5%.

• When requesting a raise, 80% of men receive it, compared to 70% of women.

• The Leisure and Hospitality industry reported the highest annual raise over the past year, at 11.5%.

For a deeper analysis, we have organized the data as follows:
Regional Average | Demographics | Industry | Changes in Average

Regional Average Pay Raise Rates

The U.S. boasts significant regional diversity, which greatly affects pay raises. In 2025, our research indicates:

• Wyoming experienced the highest annual salary increase from 2024-2025, at 10.5%.

  Beyond its picturesque landscapes, Wyoming workers have enjoyed notable salary increases recently. Other states with significant increases include: Arkansas (9.9%), Florida (9.5%), Maine (9.0%), and Indiana (8.7%).

• California saw the lowest annual salary increase from 2024-2025, at just 1.5%.

  While this is partly due to California’s already high minimum wage, it poses challenges for workers. Other states with minimal raises include: Maryland (2.0%), Washington (3.5%), Hawaii (4.0%), and New Jersey (4.2%).

Percent Salary Increase By State

Average Annual Raise by Demographics

Factors like age and gender significantly influence the average annual raise you can expect. Here are some key findings:

Average Pay Raise Percent By Age And Gender

• Individuals aged 16-24 receive the highest pay raises, averaging 15.1%.

  Women in this group earn slightly more than men, with averages of 15.2% compared to 15.0%, a trend that persists across most age categories.

• Those aged 55-85 receive the lowest pay raises, averaging just 5.3%.

  In this demographic, women again have a slight advantage, receiving a 5.5% increase compared to 5.1% for men.

• Men receive higher pay raises than women only in the 25-34 age bracket.

  Here, men see an average increase of 11.5% compared to 11.0% for women.

• On average, women experience 13% higher wage growth when changing jobs.

  Men see an average wage growth of 5.3%, while women achieve 6.3%. Furthermore, women have experienced a steadier increase in wage growth, with a 1.5% rise from 2021-2022.

  In contrast, men reported a mere 0.2% increase. However, women still earn less than men on average, with rates of $34.50 compared to $29.50.

Average Annual Raise by Industry

Your industry plays a crucial role in determining the likelihood of receiving a substantial pay raise. Here are some insights from our research:

• The Leisure & Hospitality industry has seen the highest annual raise over the past year, at 11.5%.

  This sector, which faced significant challenges during previous economic downturns, is showing signs of recovery. Other industries with notable raises include Trade, Transportation & Utilities (8.9%) and Natural Resource Mining (8.5%).

• The Construction industry had the lowest annual raise, at just 6.5%.

  This figure is significantly lower than that of the Leisure and Hospitality industry, with other sectors like Education & Health Services and Professional & Business Services also reporting low increases at 6.7%.

Average Percent Raise By Industry

Changes in Average Annual Raises Over Time

Annual raises fluctuate based on whether workers choose to change jobs or remain in the same position. Here are some notable trends:

• Year-over-year raises for January increased by over 250% between 2023-2024.

  In January of 2023, the year-over-year annual raise for those who stayed in their jobs was a mere 1.5%. However, this figure soared to 5.0% by January 2024.

• Annual raises for job switchers also saw growth, climbing by 175% between 2023-2024.

  In January 2023, the average annual raise for job switchers was 4.5%, which jumped to 12.5% in 2024.

Raises Of Job Stayers Vs. Job Switchers

Average Annual Raise FAQ

1. How much should my salary increase each year?

   Your salary should ideally increase by 3-5% annually. While this can vary based on individual circumstances, a raise of at least 5% is considered good. Anything exceeding that is above average.

   The average annual increase for 2024-2025 is 6.5%, but this is influenced by ongoing economic conditions and inflation.

2. Should I ask for a raise every year?

   Yes, if you don’t receive an automatic raise, it’s prudent to ask for one annually. Most companies typically increase pay over time; however, if you haven’t seen a raise after a year, it’s appropriate to initiate the conversation.

   Furthermore, if you’re new to a job, it’s advisable to wait at least six months before requesting a raise.

3. How long should you work without a raise?

   Typically, you should aim to work for one to two years without a raise. Waiting longer than two years is excessive, and going three years without a raise is generally unacceptable.

   If you believe you’re due for a raise and it hasn’t happened, consider discussing your situation with your boss or HR. If stagnation continues, exploring new job opportunities may be beneficial.

4. Is a 5% yearly raise considered good?

   Yes, a 5% raise is solid but not exceptional. Raises typically range from 3% to 5%. A 5% raise is favorable as long as it keeps pace with inflation and cost-of-living adjustments. However, it may not reflect extraordinary performance or contributions.

Conclusion

The average annual raise in the U.S. can vary significantly based on your location, age, and industry. For instance, a miner in Wyoming may enjoy a substantial raise exceeding 10%, while a construction worker in California may feel their wages remain stagnant.

Despite the increases observed between 2024-2025, they may not fully compensate for rising inflation.

Regardless of your current circumstances, it’s vital to recognize your worth as an employee. If you feel your compensation is stagnating, proactively discussing it with your employer or considering new job opportunities could be beneficial.

References

1. MarketPlace. “Men and women ask for pay raises at the same rate — but men get them more often.” Accessed on September 7th, 2025.

2. BLS. “Percent change in average weekly wages by state, total covered employment.” Accessed on September 8th, 2025.

3. ADP. “ADP® Pay Insights.” Accessed on September 8th, 2025.

4. SHRM. “2022 Salary Increases Look to Trail Inflation.” Accessed on September 8th, 2025.

Author

Jack Flynn

Jack Flynn is a writer for Zippia. In his professional career he’s written over 100 research papers, articles and blog posts. Some of his most popular published works include his writing about economic terms and research into job classifications. Jack received his BS from Hampshire College.