There is no correct raise percentage. There are three useful numbers: the raise that keeps up with prices, the raise your employer is probably budgeting, and the raise that would bring you to market pay. Once you have those, your ask is easier to choose and easier to defend. This guide does the arithmetic. For a wider look at pay research and job offers, see how to research and negotiate your salary.
The basic calculation#
Raise percentage = (new pay - current pay) / current pay x 100. To go the other way, new pay = current pay x (1 + raise / 100). A 6% raise on £38,000 gives £38,000 x 1.06 = £40,280.
These examples are fictional:
| Current pay | Proposed pay | Increase | Raise |
|---|---|---|---|
| $62,000 | $67,000 | $5,000 | 8.06% |
| £38,000 | £41,000 | £3,000 | 7.89% |
| ₹7,20,000 | ₹8,00,000 | ₹80,000 | 11.11% |
| Rs 1,200,000 | Rs 1,380,000 | Rs 180,000 | 15.00% |
Two adjustments show what the raise means for you. First, take-home pay. At an assumed 30% tax rate on the extra income, a $5,000 raise leaves $3,500 a year, or about $292 a month. Second, base pay against a bonus. If you assume 3% annual raises afterwards, $5,000 added to base pay comes to about $26,546 before tax over five years. A $5,000 one-off bonus comes to $5,000. A bonus may be easier for your manager to approve, so know that gap before you trade one for the other.
Nominal and real raises#
The nominal raise is the figure on your payslip. The real raise is what it buys after price rises. Use this formula:
Real raise = (1 + raise) / (1 + inflation) - 1
With US inflation at 3.7%, a 5% raise gives 1.05 / 1.037 - 1 = 1.25%. A 3.4% raise gives 1.034 / 1.037 - 1 = -0.29%, so your pay went up and your buying power went down. Here is what the same 5% raise was worth at the latest official rates:
| Country | Annual inflation | Period and source | Real value of a 5% raise |
|---|---|---|---|
| United States | 3.7% | September 2026, BLS CPI-U | 1.25% |
| United Kingdom | 3.5% | September 2026, ONS CPI | 1.45% |
| India | 5.54%, provisional | September 2026, MoSPI, as reported here | -0.51% |
| Pakistan | 10.26% | September 2026, PBS | -4.77% |
You can subtract as a shortcut when inflation is low. It gets worse as inflation rises. A 12% raise against 10.26% inflation is worth 1.58%, while simple subtraction says 1.74%.
Annual inflation also misses time. If your last raise was 20 months ago, compare the price index across those 20 months: index now / index at your last raise - 1. In the US, the BLS CPI calculator does this for you, though BLS has no October 2025 data, so pick a different month. All of these figures are national averages, so your own costs may have moved more or less.
For context, the average US worker lost ground over the past year. BLS reports that real average hourly earnings fell 0.7% from September 2025 to September 2026, and that wages and salaries rose 3.1% in the 12 months to September 2026, or -0.6% after inflation. UK regular pay grew 3.7% in June to August 2026, or 0.6% in real terms using CPIH.
Treat inflation as your personal floor. It can come up in the conversation, but employers pay for the job and the market, so rising rent alone is a weak argument.
What employers are budgeting#
| Country | Figure | What it measures | Source |
|---|---|---|---|
| United States | 3.4% for 2027, 3.5% actual for 2026 | Average salary budget | WTW, reported by SHRM, August 2026 |
| United States | 3.2% merit, 3.5% total for 2027 | Projected budgets, 1,001 organisations | Mercer, July 2026 survey |
| United Kingdom | 3.1% median | Pay awards, three months to September 2026 | Brightmine, via Reuters, October 2026 |
| India | 9.1% for 2027, 9% actual for 2026 | Projected increase, 1,200+ organisations | Aon, October 2026 |
| Pakistan | No figure | No current public survey could be verified | None |
A budget is a pool, and nobody is entitled to the average. SHRM describes employers moving toward "targeted, merit-based increases for top performers and employees in critical roles," so one person's 6% can sit beside another's 1%. Sector matters as well. Mercer's merit budgets run from 2.9% in consumer goods to 3.8% in high tech. In India, Aon projects 10.1% for non-banking financial companies, and 6.6% for technology consulting and services.
Find your market number#
The salary research guide covers method, so here are the starting points. In the US, BLS occupational wage data covers about 830 occupations by state and metro area, with May 2025 as the latest reference period. A May 2025 figure is about 18 months old, so growing it at the 3.1% wage rate above adds roughly 4.7%. In the UK, the ONS Annual Survey of Hours and Earnings was published on 22 October 2026, with provisional figures and tables by occupation and region. No equally simple official lookup could be verified for India or Pakistan, so put more weight on live job ads that state pay, recruiters' ranges and peers in similar roles.
Then divide your pay by the median you found. On $62,000 against a $70,000 median, that is 0.886, or about 89% of market. Reaching the median takes a raise of $8,000 / $62,000 = 12.9%. Be honest about fit. Sitting below the median is normal if you are new to the role, and it is a stronger argument if you have years in it and solid results.
Choosing your ask#
Take a fictional analyst in the US on $62,000 with a strong year behind her:
| Reference point | Calculation | New pay | Raise |
|---|---|---|---|
| Typical budget | $62,000 x 1.034 | $64,108 | 3.4% |
| Keeping pace with inflation | $62,000 x 1.037 | $64,294 | 3.7% |
| Market median | Researched figure | $70,000 | 12.9% |
| Two-step plan | $67,000 now, then $70,000 at a six-month review | $70,000 | 8.06%, then 4.48% |
Her ask is the two-step plan, or $67,000 if she would rather keep it simple. The rest are reference points that tell her where the conversation is likely to start.
These rules of thumb are judgment calls, not survey findings. In the same role after a strong year with pay near market, aim a few points above your local budget figure, and check that the result beats inflation. If you are clearly below market, ask for the gap, and split it into two steps when it is large, since your manager may not be able to fund it at once. If your job has grown into a bigger one, drop the percentage and ask for the pay range of the bigger job. Mention a competing offer only if you would take it.
Consider giving a range that starts at your target. In an online study by Ames and Mason, 596 participants read salary proposals, and a "bolstering" range such as $70,000 to $75,000 from someone who wanted $70,000 drew the best responses. It was a scenario about a job candidate's salary, not a live raise talk, so treat it as a useful hint.
When to ask#
Ask before the money is allocated. WTW surveyed employers from March to May and Mercer in July about 2027 budgets, which suggests that many US employers are planning next year's pay by mid-year. Raise the subject a few months before your review, not at it. If your employer runs appraisals around India's April to March financial year, that means talking by January.
You can also ask between cycles. Mercer reports that 64% of organisations have made or will make off-cycle adjustments in 2027. Good moments include a measurable win, or being handed work beyond your current job. During a pay freeze or layoffs, ask when pay reviews will resume and make your case then.
How to make the case#
Your manager often has to justify the raise to someone else, so give them a page they can forward. It needs three parts. First, results with numbers: a fictional example would be "cut month-end reporting from three days to one." Second, how your job has grown, such as the people, clients or systems you now handle. Third, your market evidence with named sources and dates.
Leave out your rent, your colleague's pay and any hint of a threat. Before the meeting, find out who approves raises and when that decision gets made.
A script and an email#
Say this, then stop talking and let them answer:
"Thanks for making time. I'd like to talk about my pay. Over the past [period], I have [result with a number] and taken on [new responsibility]. Market data for this role in [location] puts the median at about [amount], and I'm on [amount]. I'm asking for [target] to [higher figure], which starts at a [X]% increase. What would it take to get that approved?"
Or send this to request the meeting:
Subject: Request for a pay review
Dear [Manager name],
I would like to book [30 minutes] to discuss my salary before [review date or budget deadline].
Since my last pay change on [date], I have [result with a number], [second result] and taken on [new responsibility]. I have also compared my pay with [named sources], which put the median for this role in [location] at about [amount].
Based on this, I would like to discuss a new salary of [amount], an increase of [X]%. I have attached a one-page summary you can share with [approver, if relevant].
Kind regards,
[Your name]
If the answer is no#
A no is common, and it does not always reflect your work. One large data set on this is the "Do Women Ask?" study, which used 2013-14 Australian data on 4,600 workers. Comparing like with like, men who asked succeeded 20% of the time and women 16%. The data is old and from one country, but it is a useful reminder that plenty of people who ask get turned down, and that the outcome is not always about merit.
Ask three questions: what specifically would make this a yes, when can we look at it again, and who else needs to approve it? Then email a short summary of the answers, so the conversation has a record and a date.
If you are offered something other than base pay, run the arithmetic from earlier. A one-off bonus does not compound, though training or a title can have value that a percentage does not capture.
If the answer stays no, test the market. The Atlanta Fed's tracker put median US wage growth, on a three-month average, at 4.7% for job switchers in September 2026, against 3.4% for people who stayed. A gap of 1.3 points at the median is modest, individual results vary widely, and moving has its own risks. Do not threaten to leave unless you have decided to. Set a private date for your decision instead.
Before your meeting, run your numbers through Onlano's pay raise calculator so you can quote both the percentage and the amount.
