What is a normal annual raise?
US merit increase budgets have run around 3–4% recently, with 7–12% typical for promotions. Anything below inflation is a real-terms pay cut.
Calculate your new salary after a raise. Enter current pay and raise percentage to see annual, monthly, and hourly increases.
New salary = current × (1 + raise %). Raise % = (new − current) ÷ current × 100. Real raise = raise % − inflation %.
A $68,000 salary with a 5% raise becomes $71,400 — $283 more per month gross. With inflation at 3%, the real raise is only about 2%.
US merit increase budgets have run around 3–4% recently, with 7–12% typical for promotions. Anything below inflation is a real-terms pay cut.
Expect to keep roughly 60–75% after federal, state and FICA taxes, and less if the raise pushes part of your income into a higher bracket.
Base salary, almost always. It compounds into every future raise, retirement match and offer, while a bonus is a one-off that resets each year.