Salary increase projections for 2024: What the numbers say
Author: Tom Starner
After record-high pay raises in 2023, today’s tight talent market appears to be primed to continue driving employee compensation even higher next year—a reality that puts added pressure on HR and compensation professionals to get their salary budgets right.
Payscale—a provider of compensation data, software and services—reports that its eighth annual Salary Budget Survey found pay increases in 2024 are predicted to be 3.8% on average in the U.S., instead of the 3% that has been the standard for decades. And it projects higher increases in some states, industries and other countries.
According to Ruth Thomas, pay equity strategist at Payscale, the last few years have indicated that the “new normal” for salary increases may be in the 3.5%-4% range. The main driver of the increase is workers, who continue to expect higher pay hikes to regain lost value eaten up by inflation.