--- title: Here's How Big Your Raise Will Be Next Year (and How You Can Increase It) description: 'New research shows two key factors are shaping how employers are planning their 2027 raises: AI and inflation.' authors: - name: Adam Hardy role: Lead Data Reporter url: https://money.com/author/adam-hardy/ bio: Adam Hardy is a lead data journalist at Money, where he frequently reports on financial barriers that affect low-income Americans. Adam’s work has also appeared in Business Insider, Forbes, Nasdaq, The Penny Hoarder, Yahoo! Finance and more than a dozen local and regional newspapers. education: University of South Florida, BA, Magazine Journalism at_money_since: 2021 articles: 498 covers: - Career Advice - Banking - Business - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping - Taxes - Technology also_seen_in: - The Penny Hoarder - Forbes Advisor - Creative Loafing - The New York Times - The Washington Post - Bloomberg - Harvard Law School - The Federal Register - National Consumer Law Center - CBS News - Becker's Hospital Review - Business Insider - Mother Jones - The Week - Fortune - The Philadelphia Inquirer - National Association of Student Financial Aid Administrators (NAFSAA) - Education Advisory Board (EAB) - The Institute for College Access & Success (TICAS) - This Morning with Gordon Deal - Empower - Reddit social: - https://www.x.com/hardyjournalism - https://www.linkedin.com/in/hardyjournalism/ editors: - name: Julia Glum role: Managing Editor url: https://money.com/author/julia-glum/ bio: Julia Glum joined Money in 2018 and specializes in covering financial trends that affect everyday Americans' wallets. She also writes Dollar Scholar, a weekly newsletter that teaches young adults how to navigate the messy world of money. education: University of Florida at_money_since: 2018 articles: 453 covers: - Career Advice - Banking - Business - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes - Technology also_seen_in: - Newsweek - International Business Times - CBS News - Good Morning America - WUSA9 - Pix 11 - The New York Times - Mashable - The Washington Post - CNBC - Politico social: - https://x.com/superjulia - https://www.linkedin.com/in/julia-glum published: '2026-09-10T11:38:23.000Z' section: Career Advice tags: - News word_count: 463 canonical: https://money.com/salary-increase-raises-budgets-2027/ 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/). ![people climbing coins](https://img.money.com/2026/09/News-Raise-larger.jpg) If you’re anticipating a big raise next year, you may want to temper your expectations. Signs are pointing to a mediocre 2027 in terms of salary increases. Budgets for [worker raises](https://money.com/wages-not-keeping-up-with-cost-of-living/) next year are nudging up 3.5%, flat from 2026, according to two recent surveys of employers. The Conference Board and Mercer — both business consulting organizations — landed on the same figure after polling over 1,300 firms in total. The research shows two key factors are shaping how businesses are planning their raises: [artificial intelligence](https://money.com/ai-data-centers-property-taxes/) and inflation. “I wasn’t totally surprised by our results,” Jo Anne Rioli Moeller, a program director at The Conference Board, said in a [webcast](https://www.conference-board.org/webcast/ondemand/salary-increase-budgets-2026) Tuesday. “Inflation is a large indicator of what's going to happen with salary-increase budgets.” Moeller explained that large salary increases that followed the pandemic were a result of inflation, which [peaked above 9%](https://money.com/inflation-june-2022-cheaper-prices/) in 2022. Since 2023, wage growth has remained above inflation for all but three months on record. Now that inflation has moderated around 3%, so too have budgets for salaries. And while inflation is driving the overall size of the pot of money earmarked for raises next year, AI is an increasingly important factor this year in determining who is actually getting a pay increase. ## Who’s getting a raise in 2027 In January, the salary research firm [Payscale](https://www.payscale.com/press-releases/2026-pay-increases-preview) said 2026 was characterized by so-called “peanut butter” raises, in which employers spread raises fairly evenly across the board. But the trend appears to be short-lived. Companies are planning to do a 180 in 2027 by being extra picky with who they are choosing to get a raise. According to Mercer’s findings, just 8.4% of a company’s workforce on average will get a raise next year. The workers who are getting tapped for raises typically include ones who are developing in-demand skills. And right now, AI is the name of the game. Roughly 38% of employers surveyed by The Conference Board skills related to AI and machine learning are driving pay raises, topping a list of 17 skills by a notable margin. The second most-cited skill was people management, at 30.7%, followed by data analytics, at 30.4%. (That means if you want a raise next year, growing these skills — and flexing them to your employer — could be a savvy way to land a bigger paycheck.) These findings underscore that even though the broader job market is sluggish, employers are putting a premium on workers who know how to use and implement AI. A separate report from the tax firm PwC suggests the [AI premium can be substantial](https://money.com/ai-skills-wage-premium/). It found that jobs requiring AI skills offer an average 62% higher pay than similar roles that don’t require such skills. These [jobs are growing](https://money.com/fastest-growing-jobs-2035-labor-department/) eight times faster than the overall job market. ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/salary-increase-raises-budgets-2027/#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": "Here's How Big Your Raise Will Be Next Year (and How You Can Increase It)" } ] }, { "@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/salary-increase-raises-budgets-2027/#webpage", "url": "https://money.com/salary-increase-raises-budgets-2027/", "name": "Here's How Big Your Raise Will Be Next Year (and How You Can Increase It)", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2026-09-10T11:38:23.000Z", "mainEntity": { "@id": "https://money.com/salary-increase-raises-budgets-2027/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/salary-increase-raises-budgets-2027/#breadcrumb" } }, { "@type": "NewsArticle", "headline": "Here's How Big Your Raise Will Be Next Year (and How You Can Increase It)", "articleSection": "Career Advice", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2026/09/News-Raise-larger.jpg", "width": 2880, "height": 1920, "caption": "News-Raise-larger" } ], "author": [ { "@type": "Person", "name": "Adam Hardy", "url": "https://money.com/author/adam-hardy/", "@id": "https://money.com/author/adam-hardy/#author", "description": "Adam Hardy is a lead data journalist at Money, where he frequently reports on financial barriers that affect low-income Americans. Adam’s work has also appeared in Business Insider, Forbes, Nasdaq, The Penny Hoarder, Yahoo! Finance and more than a dozen local and regional newspapers.", "image": "https://img.money.com/2022/01/a_adam-hardy.jpg?quality=85&w=400&h=440&crop=1", "email": "adam.hardy@money.com", "jobTitle": "Lead Data Reporter", "alumniOf": "University of South Florida, BA, Magazine Journalism", "subjectOf": [ { "@type": "WebPage", "url": "https://www.thepennyhoarder.com/", "name": "The Penny Hoarder" }, { "@type": "WebPage", "url": "https://www.forbes.com/advisor/", "name": "Forbes Advisor" }, { "@type": "WebPage", "url": "https://creativeloafing.com/", "name": "Creative Loafing" }, { "@type": "WebPage", "url": "https://www.nytimes.com/2023/05/01/opinion/biden-trump-harris-2024.html", "name": "The New York Times" }, { "@type": "WebPage", "url": "https://www.washingtonpost.com/opinions/2022/12/26/flexible-spending-account-is-flawed-benefit/", "name": "The Washington Post" }, { "@type": "WebPage", "url": "https://www.bloomberg.com/opinion/articles/2025-09-20/-100-000-h-1b-visa-fee-is-a-gamble-that-could-protect-us-jobs", "name": "Bloomberg" }, { "@type": "WebPage", "url": "https://petrieflom.law.harvard.edu/2024/02/08/whoop-and-the-irs-how-tax-avoidance-helps-health/", "name": "Harvard Law School" }, { "@type": "WebPage", "url": "https://www.federalregister.gov/documents/2025/12/29/2025-23853/weighted-selection-process-for-registrants-and-petitioners-seeking-to-file-cap-subject-h-1b#footnote-33-p60883", "name": "The Federal Register" }, { "@type": "WebPage", "url": "https://www.nclc.org/resources/what-states-can-do-to-stop-credit-reporting-abuses/", "name": "National Consumer Law Center" }, { "@type": "WebPage", "url": "https://www.cbsnews.com/news/open-enrollment-irs-changes-fsa-hsa-flexible-spending-account-health-savings-account-2023/", "name": "CBS News" }, { "@type": "WebPage", "url": "https://www.beckershospitalreview.com/rankings-and-ratings/20-top-us-hospitals-for-2025-per-money/", "name": "Becker's Hospital Review" }, { "@type": "WebPage", "url": "https://www.businessinsider.com/using-chatgpt-ai-write-cover-letters-job-applications-2023-2", "name": "Business Insider" }, { "@type": "WebPage", "url": "https://www.motherjones.com/politics/2026/04/a-major-strike-of-beef-workers-pauses-in-colorado-but-workers-say-the-fight-isnt-over/", "name": "Mother Jones" }, { "@type": "WebPage", "url": "https://theweek.com/business/economy/job-market-frozen-thawing", "name": "The Week" }, { "@type": "WebPage", "url": "https://fortune.com/2023/12/20/workers-lose-money-on-unused-fsa-accounts-deadlines-what-companies-should-do/", "name": "Fortune" }, { "@type": "WebPage", "url": "https://www.inquirer.com/opinion/editorials/liberation-day-tariffs-economy-stock-market-trump-20250401.html", "name": "The Philadelphia Inquirer" }, { "@type": "WebPage", "url": "https://www.nasfaa.org/news-item/37955/Student_Loan_Changes_2026_New_Repayment_Options_Taxable_Forgiveness_and_More_on_the_Way", "name": "National Association of Student Financial Aid Administrators (NAFSAA)" }, { "@type": "WebPage", "url": "https://eab.com/resources/blog/adult-education-blog/graduate-funding-shift-pricing-aid-strategies-aligned/", "name": "Education Advisory Board (EAB)" }, { "@type": "WebPage", "url": "https://ticas.org/california/state-private-loans-protections-blog/", "name": "The Institute for College Access & Success (TICAS)" }, { "@type": "WebPage", "url": "https://thismorningwithgordondeal.com/b/This-Morning-with-Gordon-Deal-August-04,-2026/421564107823081285.html", "name": "This Morning with Gordon Deal" }, { "@type": "WebPage", "url": "https://www.empower.com/the-currency/life/pumpkin-spice-season-spending", "name": "Empower" }, { "@type": "WebPage", "url": "https://www.reddit.com/r/Economics/comments/1va10oa/comment/p0i9bju/", "name": "Reddit" } ], "sameAs": [ "https://www.x.com/hardyjournalism", "https://www.linkedin.com/in/hardyjournalism/" ], "worksFor": { "@id": "https://money.com/#organization" } } ], "publisher": "https://money.com/#organization", "datePublished": "2026-09-10T11:38:23.000Z", "description": "New research shows two key factors are shaping how employers are planning their 2027 raises: AI and inflation.", "abstract": "New research shows two key factors are shaping how employers are planning their 2027 raises: AI and inflation.", "@id": "https://money.com/salary-increase-raises-budgets-2027/", "inLanguage": "en-US", "editor": [ { "@type": "Person", "name": "Julia Glum", "url": "https://money.com/author/julia-glum/", "@id": "https://money.com/author/julia-glum/#author", "description": "Julia Glum joined Money in 2018 and specializes in covering financial trends that affect everyday Americans' wallets. She also writes Dollar Scholar, a weekly newsletter that teaches young adults how to navigate the messy world of money. ", "image": "https://img.money.com/2021/10/a_julia-glum.jpg?quality=85&w=400&h=440&crop=1", "email": "julia.glum@money.com", "jobTitle": "Managing Editor", "alumniOf": "University of Florida", "subjectOf": [ { "@type": "WebPage", "url": "https://www.newsweek.com", "name": "Newsweek" }, { "@type": "WebPage", "url": "https://www.ibtimes.com/", "name": "International Business Times" }, { "@type": "WebPage", "url": "https://www.cbsnews.com/news/home-office-tax-deduction-who-qualifies/", "name": "CBS News" }, { "@type": "WebPage", "url": "https://www.goodmorningamerica.com/living/story/coupon-queen-woman-tik-tok-share-tips-couponing-66302189", "name": "Good Morning America" }, { "@type": "WebPage", "url": "https://www.wusa9.com/video/entertainment/television/programs/great-day-washington/tips-to-being-better-with-money-in-2021/65-a5b83e05-73ba-4d60-b9a8-1d47f9ac6018", "name": "WUSA9" }, { "@type": "WebPage", "url": "https://pix11.com/news/coronavirus/rebound/making-ends-meet/millenials-taking-biggest-financial-hit-from-pandemic/", "name": "Pix 11" }, { "@type": "WebPage", "url": "https://www.nytimes.com/2019/09/10/opinion/active-shooter-drill-schools.html", "name": "The New York Times" }, { "@type": "WebPage", "url": "https://mashable.com/article/forrest-fenn-treasure-found", "name": "Mashable" }, { "@type": "WebPage", "url": "https://www.washingtonpost.com/news/post-nation/wp/2014/08/13/theres-an-app-for-that-authorities-say-man-asked-siri-for-help-dumping-body/", "name": "The Washington Post" }, { "@type": "WebPage", "url": "https://www.cnbc.com/2020/06/08/treasure-buried-by-forrest-fenn-finally-found-after-10-years.html", "name": "CNBC" }, { "@type": "WebPage", "url": "https://www.politico.com/tipsheets/florida-playbook/2017/03/gillum-for-governors-rollout-stumble-florida-woman-gets-trump-shout-out-rubios-tampa-office-problems-218973", "name": "Politico" } ], "sameAs": [ "https://x.com/superjulia", "https://www.linkedin.com/in/julia-glum" ], "worksFor": { "@id": "https://money.com/#organization" } } ], "wordCount": 463, "keywords": [ "News" ], "about": [ { "@type": "Thing", "name": "Career counseling", "sameAs": [ "https://en.wikipedia.org/wiki/Career_counseling" ] }, { "@type": "Thing", "name": "Wages and salaries", "sameAs": [ "https://en.wikipedia.org/wiki/Wages_and_salaries" ] } ] } ] } ```