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Fortune
Fortune
Sheryl Estrada

Pay raises plateau: Companies hold steady on salary budgets for 2026

WTW
Manager conducting an interview and considering women for a new hire in a meeting room of a modern business office. (Credit: Getty Images)

Good morning. Salary increases for employees are expected to remain similar next year amid a flatter, but potentially volatile, economic outlook.

For U.S. companies, the average salary increase budget is projected to hold steady at 3.5% in 2026, matching the actual increases seen in 2025, according to the Salary Budget Planning Report by Willis Towers Watson (WTW).

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