Created by Isabella Miller, SHRM-CP ·
Reviewed by David Smith, SHRM-SCP, CCP · Last reviewed Nov 3, 2026
WorldatWork’s 2026–2027 survey points to a 3.6% U.S. mean total salary-increase budget for 2027; Mercer’s QuickPulse shows 3.2% merit and 3.5% total among 1,001 U.S. organizations—most still preliminary as of July 2026.
7 min read · Updated November 3, 2026
Salary-increase budgets for 2027 are settling into a familiar mid-3% band in major U.S. employer surveys—stable versus the prior cycle, not a return to the higher pandemic-era envelopes. This post summarizes what WorldatWork and Mercer published for 2027 planning, then shows how to use those figures without mistaking a survey mean for your personal raise. For the living source table and CPI context, keep the pillar average raise percentage open. For pool mechanics, read how raise budgets are set. When you need arithmetic on an offered percent, use the merit increase calculator or how to calculate a raise.
What WorldatWork reported for 2026–2027
WorldatWork’s 2026–2027 Salary Budget Survey toplines (summarized in Workspan Daily in July 2026) reported that U.S. employers’ actual 2026 mean total salary-increase budgets averaged 3.6%, matching the prior year’s projection for 2026, with a 3.6% mean projection for 2027. In plain language: the planning climate WorldatWork measured did not jump or collapse; it held at 3.6% at the mean for total salary-increase budgets.
That stability matters for expectations. A flat survey mean does not freeze every employer’s envelope, and it does not assign 3.6% to every employee. It does tell candidates and managers that “typical budget” conversations in late 2026 and into 2027 are still anchored near the mid-3% range in this particular survey—not in invented double-digit folklore.
What Mercer QuickPulse reported for 2027
Mercer’s QuickPulse U.S. Compensation Planning Survey—fielded mid-July 2026 among 1,001 U.S. organizations, with a Marsh newsroom release dated August 2026—found employers planning 3.2% average base-salary merit increases and 3.5% average total salary increases for 2027. Mercer’s total figure includes merit plus promotions, cost-of-living, and other adjustments, which is why total sits slightly above merit.
Mercer also reported that 87% of those 2027 budgets were still preliminary as of July 2026. Preliminary is not worthless—it is how planning calendars work—but it is a reminder to refresh your reading when final budgets lock. A July projection can move a tenth or two before letters print; it should not be hard-coded into a resignation decision without company-specific context.
Merit versus total: why both numbers appear
Survey houses often publish merit and total increase budgets. Merit is the performance-oriented base-pay tap many managers fill first. Total can fold in promotions, COLA language, equity adjustments, and other base-pay movements depending on the survey’s definition. When someone says “raises are 3.5% next year,” ask whether they mean merit-only or total—and which survey they saw.
WorldatWork’s 3.6% figure cited above is a mean total salary-increase budget projection for 2027 (with 2026 actuals also at 3.6% mean). Mercer’s pair is 3.2% merit / 3.5% total for 2027. The two houses are not measuring identical samples or identical category definitions, so treat them as neighboring climate readings—not as a contradiction you must “solve” into one fake consensus percent.
Budget is not your award
A 3.6% company budget funds a distribution. Higher performers, promotions, and market fixes can take more of the pool; others receive less or only a small adjustment. Mid-year off-cycle spends can shrink what remains for the annual cycle. That is why how raise budgets are set separates the envelope from the letter. Survey literacy starts with that split.
How to use 2027 figures in a raise conversation
Anchor on your company’s stated envelope when you have it. Use WorldatWork and Mercer only as external climate: “Major surveys are still projecting mid-3% total budgets for 2027; here is how my contribution and market data support a specific ask.” Then convert the ask into dollars with the merit increase calculator and show paycheck impact with how to calculate a raise identities—or the homepage pay raise calculator.
Do not paste “3.6%” into an email as if WorldatWork owed you that percent. Do not invent industry or state overlays that the surveys did not publish in the releases you read. If you need industry framing, use cited pieces such as average raise by industry rather than fabricating a sector premium.
Inflation and real raise still sit beside the budget
A mid-3% nominal budget preserves purchasing power only relative to the inflation index you cite for the same period. Pair budget climate with inflation and your real raise and the CPI context on average raise percentage. Holding purchasing power is not the same as advancing real living standards—and survey budgets are not COLA guarantees.
Preliminary budgets and calendar timing
Because Mercer flagged 87% preliminary status in July 2026, managers running early calibration should label figures as draft. Employees reading August newsroom headlines should expect possible small revisions. Finance stress-tests, headcount changes, and leadership appetite can still nudge an envelope after a QuickPulse field window. Re-read your HR guidelines when worksheets open.
WorldatWork’s message of stability (3.6% actual 2026 mean, 3.6% 2027 projection) is useful precisely because it discourages whiplash narratives. If your company is far above or below that band, ask which taps are included and whether promotions sit inside or outside the merit line—rather than assuming the survey is “wrong.”
Managers: translate percent climate into pool dollars
Multiply eligible payroll by the approved budget percent to get dollars available, then design a distribution that fits. A 3.5% total budget on $10 million eligible payroll is about $350,000 to allocate—not a 3.5% sticky note on every row. Use HR raise pool math patterns and the merit increase calculator team mode when you need cost rollups. Cite WorldatWork or Mercer when leadership asks “what is the market doing,” and keep your internal matrix as the decision tool.
Employees: separate climate, market, and contribution
Climate (survey budgets) answers “what are employers planning in aggregate?” Market data answers “where does my role sit versus peers?” Contribution answers “what did I deliver?” A strong contribution case can justify an above-budget ask; a weak market position can explain a below-mean outcome even in a 3.6% climate. Bring all three lenses, and convert every percent into annual and paycheck dollars before you celebrate or panic.
What not to invent
Do not invent a “typical 2027 raise for my job title” from these two releases alone. Do not claim Mercer and WorldatWork “agree on 3.4%” by averaging their headlines into a fake blended statistic. Do not treat preliminary July figures as final December letters. Quote the publisher, the year, the metric (merit vs total), and the sample notes (for Mercer: 1,001 U.S. organizations; 87% preliminary) when you cite them.
Practical next steps
Read the cited WorldatWork Workspan Daily piece and Mercer newsroom release (links in sources) for primary wording.
Compare those climate numbers to your employer’s published guideline if you have one.
The 2027 U.S. salary-budget outlook in these surveys is moderate and stable: WorldatWork at a 3.6% mean total projection (with 3.6% 2026 actual mean), Mercer at 3.2% merit / 3.5% total among 1,001 organizations, mostly still preliminary in mid-2026. Use that climate to set expectations, then do the personal math with clear formulas and your own letter—not with invented statistics.
FAQ
FAQ
Quick answers about raises, pay periods, and what this calculator can (and cannot) estimate.
What are U.S. employers projecting for 2027 salary-increase budgets?
WorldatWork’s 2026–2027 Salary Budget Survey reported a 3.6% U.S. mean total salary-increase budget projection for 2027, matching a 3.6% actual mean for 2026 (Workspan Daily, July 2026). Mercer’s July 2026 QuickPulse (Marsh newsroom, August 2026) found 3.2% average merit and 3.5% average total among 1,001 U.S. organizations.
Does a 3.6% survey budget mean I will get 3.6%?
No. Survey budgets are employer planning pools, not individual guarantees. Performance distributions, promotions, market adjustments, and mid-year spend change what any one person receives. Read how raise budgets are set for pool versus award mechanics.
Were 2027 budgets final when these surveys ran?
Often not. Mercer reported that 87% of the 2027 budgets in its July 2026 QuickPulse were still preliminary. Treat mid-year projections as climate, and re-check final letters and your company’s envelope later in the cycle.