Wondering what kind of raise to expect in 2025? You’re not alone. With inflation, labor shortages, and shifting market dynamics, salary expectations are a hot topic this year. Whether you’re negotiating a new offer or asking for a raise at your current job, it’s important to know what’s normal, what’s possible, and how to position yourself to earn more.
How much will salaries increase in 2025?
Forecasts suggest that companies are budgeting an average salary increase of 3.9% in 2025. This is slightly down from the 4.1% average in 2024 but still above the typical pre-pandemic raises of 2–3%. The increase reflects a still-competitive labor market and employer efforts to retain talent without significantly expanding payroll budgets.
Is a 3.9% salary budget increase enough in 2025?
In short: not really. A 3.9% raise may help offset inflation, but it won’t close the pay gap for workers who have been underpaid for years or taken on additional responsibilities without commensurate pay.
If you’ve been going above and beyond, learning new skills, or outperforming expectations, a 3.9% raise might feel like a slap in the face. But here’s the thing: that’s just the average. You can do better.
How to position yourself for a salary increase in 2025
Getting a raise above the average requires preparation, awareness, and a bit of strategy. Here are some key ways to position yourself for more.
Upskilling and reskilling
The job market rewards skills, especially those that align with emerging technologies or evolving business needs. Adding certifications, learning new tools, or deepening your expertise can give you more leverage in raise discussions.
Keep a record of your wins
Don’t rely on your manager to remember everything you’ve done. Track your achievements, especially ones that tie directly to revenue, cost savings, or team success. Having data-backed wins makes your case stronger.
Understand your company’s compensation structure
Some companies have rigid salary bands, while others leave room for negotiation. Ask HR about how raises are calculated and what criteria they value.
Look for better opportunities
Sometimes, the best way to get a raise is to entertain offers from elsewhere. It’s not about leaving immediately—it’s about knowing your worth and gaining negotiation power.
Be the best employee you can be
Consistency, reliability, and proactive communication go a long way. Being a high-value, low-maintenance employee makes it easier for your manager to go to bat for your raise.
How to ask for a salary increase
- Schedule a formal meeting. Don’t make your pitch casually or over lunch.
- Lead with gratitude. Start the conversation by acknowledging your appreciation for your role or team.
- Present your case clearly. Use metrics, responsibilities, and external salary benchmarks.
- Ask confidently. Don’t just suggest a raise—request a specific number.
- Be prepared for questions or pushback. It’s normal; stay calm and reiterate your value.
Take control of your career trajectory
You don’t have to settle for average. Even if the standard raise in 2025 is 3.9%, that doesn’t mean you’re limited to it. With the right preparation, skills, and strategy, you can earn significantly more.
So don’t wait for your manager to notice your worth. Show them.
The raise you deserve might be just one confident conversation away.