--- title: Most Companies Say They're Giving Workers Raises Over 3% This Year description: A new report found that most companies plan to give workers raises over 3% in 2023, due to high inflation and pay transparency laws. authors: - name: Mary Ellen Cagnassola role: Reporter url: https://money.com/author/mary-ellen-cagnassola/ bio: Mary Ellen (M.E.) Cagnassola is a former reporter at Money, where she covered Social Security, retirement, housing, and employment. Her work reflects her commitment to service and equity in consumer finance. education: Rutgers University, BA Journalism at_money_since: 2021 articles: 205 covers: - Career Advice - Banking - Business - Credit - Credit Cards - Economy and Politics - Education - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping - Taxes former_staff: true published: '2023-02-22T21:20:02.000Z' modified: '2024-01-10T12:50:08.000Z' section: Career Advice tags: - News - Wages word_count: 411 canonical: https://money.com/companies-giving-workers-raises-3-percent/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Hands holding open wallet with dollar bills shooting out. In the background there is an oversized pay stub.](https://img.money.com/2023/02/News-Companies-Increase-Wages.jpg) Think you’re due for a [raise](https://money.com/big-raise-salary-projections-2023/) at work? The odds of a pay increase are looking good for many workers this year, according to a [new report](https://www.payscale.com/research-and-insights/cbpr/) from Payscale. The software and data company’s latest survey of about 5,000 human resources professionals revealed that while most companies said they plan to [increase employee pay](https://money.com/ask-for-a-raise-scipt-2022/) in 2023, raises might not be as generous or widespread as last year. ## What the data says - Payscale found 80% of companies said raises are planned for 2023 — down from last year's 92%. - While more than half of respondents said base pay increases will be over 3%, some employees may see lower raises compared to last year. Just 11% of companies said they plan to increase pay above 5% compared to 18% in 2022. - However, the number of companies that give formal pay increases biannually has increased by twofold since 2022. About 86% of those surveyed said they plan to issue raises out of cycle — or pay increases given outside a company's annual pay increase process — to [keep up with inflation](https://money.com/get-new-job-raise-outpace-inflation/), the rising cost of living and new [salary disclosure](https://money.com/dollar-scholar-pay-transparency/) requirements, or just to meet the needs of the business. ## Why it's important - The pressure is on for companies to make their salary offers more attractive amid new [pay transparency laws](https://money.com/pay-transparency-laws-help-get-raise/) and labor market competition. - The number of employers including pay ranges in [job postings](https://money.com/best-job-search-sites/) more than doubled since last year, according to Payscale, and 48% of organizations said pay transparency requirements are a driving force behind changes to compensation strategy. - Although fewer [employees](https://money.com/workers-actively-disengaged-jobs-gallup/) are leaving their jobs compared to [last year](https://money.com/record-high-workers-quitting-jobs/), the majority of organizations said they’re still struggling with recruiting and retaining talent. - The [labor market](https://money.com/unemployment-january-jobs-report-stock-market/) has remained surprisingly strong: [Unemployment](https://money.com/unemployment-january-jobs-report-stock-market/) dropped to its lowest rate in decades in January, defying expectations of a recession and mass [layoffs](https://money.com/tech-layoffs-affect-stock-prices/). ## Keep in mind Some economists worry that salary increases will drive up inflation, but analysis suggests recent wage growth has had little impact. An [October study](https://www.imf.org/en/Blogs/Articles/2022/10/05/wage-price-spiral-risks-appear-contained-despite-high-inflation) from the International Monetary Fund found that concerns over raises accelerating inflation haven’t materialized so far. And another [report](https://money.com/get-new-job-raise-outpace-inflation/#:~:text=For%20comparison%2C%20median%20wage%20growth,until%20inflation%20jumped%20in%202021.) from the Federal Reserve Bank of Atlanta found that wages aren’t keeping up with inflation, anyway. ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/companies-giving-workers-raises-3-percent/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Career Advice", "item": "https://money.com/career-advice/" }, { "@type": "ListItem", "position": 3, "name": "Salaries and Wages", "item": "https://money.com/salaries-and-wages/" }, { "@type": "ListItem", "position": 4, "name": "Most Companies Say They're Giving Workers Raises Over 3% This Year" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/companies-giving-workers-raises-3-percent/#webpage", "url": "https://money.com/companies-giving-workers-raises-3-percent/", "name": "Most Companies Say They're Giving Workers Raises Over 3% This Year", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2023-02-22T21:20:02.000Z", "mainEntity": { "@id": "https://money.com/companies-giving-workers-raises-3-percent/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/companies-giving-workers-raises-3-percent/#breadcrumb" }, "dateModified": "2024-01-10T12:50:08.000Z" }, { "@type": "NewsArticle", "headline": "Most Companies Say They're Giving Workers Raises Over 3% This Year", "articleSection": "Career Advice", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2023/02/News-Companies-Increase-Wages.jpg", "width": 2880, "height": 1920, "caption": "News-Companies-Increase-Wages" } ], "author": [ { "@type": "Person", "name": "Mary Ellen Cagnassola", "url": "https://money.com/author/mary-ellen-cagnassola/", "@id": "https://money.com/author/mary-ellen-cagnassola/#author", "description": "Mary Ellen (M.E.) Cagnassola is a former reporter at Money, where she covered Social Security, retirement, housing, and employment. 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