You've been at your company for 18 months. You've taken on extra projects, hit your targets, and trained the new hire. Your annual review is in three weeks, and you have a feeling that if you don't ask, you'll get the standard 3% bump and a handshake. The same raise everyone gets.
Here's what the data says about that feeling: you're almost certainly right. U.S. employers are budgeting 3.5% for average salary increases in 2025 and 2026 [1]. That's the default. It barely matches inflation. It's not a reward for performance. It's a cost-of-living placeholder.
The good news: 82% of workers who asked for a raise in the past year received one [2]. The bad news: most people never ask.
This article gives you the timing, the research framework, the actual words to say, and the backup plan if the answer is no.
30-Second Summary: The average company raise is 3–3.5%. A merit raise for strong performers is 5–10%. A market adjustment (when you're underpaid relative to peers) can be 10–20%. Preparation wins: research your market value, document your contributions with numbers, choose the right timing, and anchor your ask above your target. 82% who ask get something.
Three Types of Raises (Know Which You're Asking For)
Before you walk into the conversation, know what you're actually requesting. Different types require different arguments.
| Raise Type | What It Is | Typical Range | Your Argument |
|---|
| Cost-of-living adjustment (COLA) | Keeps pace with inflation | 2–3.5% | "Inflation was 2.7% this year. My pay should keep up." |
| Merit increase | Rewards individual performance | 5–10% | "Here are three specific ways I exceeded expectations." |
| Market adjustment | Corrects underpayment vs. market rate | 10–20% | "My role pays $80k at comparable companies. I'm at $72k." |
A COLA is the easiest ask. A merit raise requires evidence of impact. A market adjustment requires external salary data. The strongest negotiations combine merit + market: "I've outperformed, AND I'm below market."
Step 1: Research Your Market Value
You can't negotiate effectively without knowing what your role pays elsewhere. Three tools, all free:
- Glassdoor Salary: Self-reported, so take it with a grain of salt, but large sample sizes.
- Levels.fyi (tech): Actual compensation data for tech roles, including equity and bonuses.
- Bureau of Labor Statistics Occupational Outlook: Government data on median pay by profession.
Search for your exact job title, your metro area, and your experience level. Note the range (25th to 75th percentile), not just the average.
Maya, a Marketing Manager with 5 years of experience:
- Current salary: $72,000
- Glassdoor median for her metro: $78,000
- 75th percentile: $85,000
Maya's underpaid by about $6,000–$8,000 relative to the market midpoint. That's her market adjustment argument.
Step 2: Document Your Contributions (With Numbers)
Your manager may like you. But "liking you" doesn't survive the conversation with their VP when they're asking for budget allocation. Numbers do.
What to document:
| Instead of This | Say This |
|---|
| "I worked really hard this year" | "I managed the product launch that generated $340,000 in Q3 revenue" |
| "I took on extra responsibilities" | "I trained 3 new team members, reducing onboarding time from 6 weeks to 4" |
| "I'm a team player" | "I covered the Southeast territory during the vacancy, maintaining 98% client retention" |
Quantify everything. Revenue generated. Costs saved. Efficiency gains. Client retention. If your work doesn't directly touch revenue, quantify time saved, errors prevented, or projects completed ahead of deadline.
Three wins is the magic number. You don't need twenty. You need three that are undeniable.
Step 3: Choose the Right Timing
Timing affects outcomes more than most people realize.
Best times to ask:
- After completing a major project or hitting a visible goal
- During or just before your annual performance review
- When the company is doing well (strong quarter, new funding, expansion)
- 2–4 weeks before budget decisions are finalized (usually Q4 for the following year)
Worst times to ask:
- During layoffs or a hiring freeze
- Right after a company setback
- On a Monday morning (your manager is in triage mode)
- When your manager is visibly stressed or distracted
Tuesday or Wednesday, mid-morning, after you've had a recent win. That sounds oddly specific because it is.
Step 4: The Conversation (Word for Word)
The Opening
Don't ambush. Send a message first:
"I'd love to schedule 20 minutes this week to discuss my role and compensation. When works for you?"
This signals the topic without creating anxiety. Your manager has time to prepare (and check budget).
The Script
"Thanks for making time. I've really valued the work I've done here over the past [time period], and I want to discuss how my compensation can better reflect my contributions and market value.
Over the past year, I [Win #1: specific, quantified]. I also [Win #2: specific, quantified]. And most recently, [Win #3: specific, quantified].
I've done some research on what this role pays in our market, and I'm seeing a range of $78,000 to $85,000 for someone with my experience and scope. Given my performance and the value I'm bringing, I'd like to discuss moving my salary to $82,000."
Notice the anchor: Maya asked for $82,000, which is above the $78,000 midpoint. This is the anchoring principle from negotiation psychology [3]. The first number spoken shapes the entire range of discussion. If you anchor at your actual target, the negotiation will pull it down. Anchor above, and you'll land closer to where you want.
If They Agree
Express appreciation. Ask when the change takes effect. Get it in writing (email confirmation).
If They Counter Lower
"I appreciate the offer of [amount]. Can you help me understand what it would take to reach the $82,000 range in the next review cycle? I'd like to work toward that number."
This reframes a partial win as a roadmap, not a rejection.
If They Say "No Budget"
This is the most common objection, and it's often real. Budgets are finite.
"I understand budget constraints. Are there non-monetary options we could explore? I'm thinking about [additional PTO / remote work flexibility / a title change / professional development budget / a one-time bonus]. And could we set a specific date to revisit the salary discussion, perhaps in six months?"
Get the date in writing. Put it on both of your calendars. The worst outcome is accepting "not now" without a "when."
The Math of Asking
Here's what Maya's negotiation looks like in dollars:
| Scenario | Annual Salary | 5-Year Cumulative Earnings (3% annual raises) |
|---|
| Accepts standard 3% raise | $74,160 | $393,923 |
| Negotiates to 8% ($77,760) | $77,760 | $413,029 |
| Negotiates to $82,000 (market rate) | $82,000 | $435,496 |
The difference between accepting 3% and negotiating to market rate is $41,573 over five years. That gap compounds. Every future raise, every future bonus, every future employer offer builds on the higher base.
One conversation. Twenty minutes. Potentially tens of thousands of dollars.
The fear of asking is expensive.
What If You're a Woman or Minority?
The data here is uncomfortable. Women negotiate at roughly similar rates to men, but men secure higher outcomes, averaging $4,247 in additional salary versus $2,349 for women in one NACE study of graduates [4]. The gender pay gap narrows with negotiation but doesn't close.
The practical implication: women and minorities benefit from anchoring higher, documenting wins more aggressively, and (where possible) having external offers or market data to make the case less subjective and more mathematical.
For a broader view of how salary connects to your total financial picture, calculating your net worth puts the raise in context. An extra $5,760 per year invested for 20 years at 7% returns becomes roughly $237,000 in additional wealth.
Your Next Move
- Research your market rate this week. Spend 30 minutes on Glassdoor, Levels.fyi, or the BLS. Write down the range for your role + market + experience.
- Document three quantified wins. Not "I helped the team." Specific outcomes with numbers. Email them to yourself so you have a dated record.
- Schedule the meeting. Don't wait for your annual review if the timing is right now. Send the scheduling message.
- Practice the script out loud. Seriously. Say the words in front of a mirror or to a friend. The first time shouldn't be in your manager's office.
- Prepare for "no." Have your non-monetary asks ready. Have a date for the follow-up. And if you're evaluating whether to stay or explore other offers, know your full compensation picture before making that decision.
Learning how gross income translates to net income helps you understand exactly how much of a $5,000 raise actually reaches your bank account (spoiler: roughly $3,500 after taxes).
Use our paycheck calculator to model the after-tax impact of different raise scenarios before your conversation.
References
- WTW (Willis Towers Watson). (2025). Salary Budget Planning Report. WTW.com.
- Schulz, M. (2024). 82% of Workers Who Asked for a Raise Got One. LendingTree.
- American Psychological Association. (2020). Negotiating Strategies for New Roles and Responsibilities. APA.org.
- National Association of Colleges and Employers. (2024). Propelling Pay Equity Forward: Strategies for a Fairer Future. NACEWeb.org.
- Bureau of Labor Statistics. (2024). Employment Cost Index — September 2024. BLS.gov.
