A PayScale survey revealed that the 2024 salary increase is projected to rise by 3.8%. Further reports say employers anticipated the same increase this year but the actual increase rose to 4%.A Salary Budget Survey from PayScale recently revealed that employers are budgeting an average of 3.8% for the 2024 salary increase. In 2022, employers reportedly expected to see the same increase in 2023, but the actual salary increased by 4%.
However, according to Starner, PayScale anticipates that the 2024 salary increase will remain at 3.8% as inflation cools down and the labor market loosens. Further reports say 22% of the employers who were surveyed plan to lower their budget from 9% for the 2024 salary increase.
Various Budgets for 2024 Salary Increase
Nonetheless, an article in Yahoo Finance states that the 2024 salary increase depends on different factors such as industry and geography. For instance, exempt or non-management employees in the health care and social assistance industry expect to see a 2024 salary increase of 3.5%. On the other hand, non-management employees in the tech sector expect to see a 2024 salary increase of 4.1%.
Unfortunately, Ruth Thomas, a pay equity strategist at PayScale speculated that the laws and regulations about pay transparency could pressure employers to budget the 2024 salary increase higher. This year, the number of employers who pushed for a higher 2024 salary increase went from 26% to 34%.