{"id":5899,"date":"2025-08-19T13:17:50","date_gmt":"2025-08-19T18:17:50","guid":{"rendered":"https:\/\/www.employco.com\/blog\/?p=5899"},"modified":"2025-08-19T13:18:58","modified_gmt":"2025-08-19T18:18:58","slug":"hr-newsletter-employers-planning-for-3-5-wage-increase-in-2026","status":"publish","type":"post","link":"https:\/\/www.employco.com\/blog\/2025\/08\/19\/hr-newsletter-employers-planning-for-3-5-wage-increase-in-2026\/","title":{"rendered":"HR Newsletter: Employers Planning for 3.5% Wage Increase in 2026"},"content":{"rendered":"\n
\"HR<\/figure>\n\n\n\n
<\/div>\n\n\n\n

U.S. employers are forecasting average wage increases of 3.5% in 2026, consistent with 2025 levels. A recent survey, which polled over 1,500 employers in the United States, showed that 53% plan no change to their salary increase budgets, while 31% expect to reduce them. Only 15% anticipate budget increases, signaling a continued shift toward cautious compensation planning even as overall wage growth holds steady. <\/p>\n\n\n\n\n\n\n\n

While 3.5% remains elevated relative to pre-pandemic norms (about 3%), it marginally edges out current inflation. The most recent reading (June 2025) of the Consumer Price Index showed rising inflation of 2.7% year over year, meaning many employees may see limited real income growth.<\/p>\n\n\n\n

Employers should continue to monitor economic and compensation trends. Contact us<\/a> today for more resources.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

U.S. employers are forecasting average wage increases of 3.5% in 2026, consistent with 2025 levels. A recent survey, which polled over 1,500 employers in the United States, showed that 53% plan no change to their salary increase budgets, while 31%… <\/p>\n

Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[31],"tags":[],"class_list":["post-5899","post","type-post","status-publish","format-standard","hentry","category-hr-newsletter"],"featured_image_src":null,"author_info":{"display_name":"Employco USA","author_link":"https:\/\/www.employco.com\/blog\/author\/employcousa\/"},"yoast_head":"\r\nHR Newsletter: Employers Planning for 3.5% Wage Increase in 2026 - Employco Blog<\/title>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.employco.com\/blog\/2025\/08\/19\/hr-newsletter-employers-planning-for-3-5-wage-increase-in-2026\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"HR Newsletter: Employers Planning for 3.5% Wage Increase in 2026 - Employco Blog\" \/>\r\n<meta property=\"og:description\" content=\"U.S. employers are forecasting average wage increases of 3.5% in 2026, consistent with 2025 levels. 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The WHD enforces federal minimum wage, overtime pay, recordkeeping and child labor requirements of the Fair Labor Standards Act (FLSA), as well as the Family and\u2026","rel":"","context":"In "HR Newsletter"","block_context":{"text":"HR Newsletter","link":"https:\/\/www.employco.com\/blog\/category\/employco-in-the-news\/hr-newsletter\/"},"img":{"alt_text":"HR Newsletter: Wage and Hour Case Studies","src":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":4936,"url":"https:\/\/www.employco.com\/blog\/2023\/09\/19\/hr-newsletter-state-legislative-updates-8\/","url_meta":{"origin":5899,"position":2},"title":"HR Newsletter: State Legislative Updates","author":"Employco USA","date":"September 19, 2023","format":false,"excerpt":"California Updates EITC Employer Notification Requirements - On July 10, 2023, California adopted Senate Bill (SB) 131 to update requirements for employers to notify their employees that they may be eligible for the earned income tax credit (EITC). Employers must comply with these new notification requirements beginning Jan. 1, 2024.\u2026","rel":"","context":"In "HR Newsletter"","block_context":{"text":"HR Newsletter","link":"https:\/\/www.employco.com\/blog\/category\/employco-in-the-news\/hr-newsletter\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4612,"url":"https:\/\/www.employco.com\/blog\/2023\/05\/15\/hr-newsletter-real-world-case-studies-wage-and-hour-violations\/","url_meta":{"origin":5899,"position":3},"title":"HR Newsletter: Real-World Case Studies \u2013 Wage and Hour Violations","author":"Employco USA","date":"May 15, 2023","format":false,"excerpt":"Are bonuses affected by workers\u2019 time off under the FMLA? What happens if a company doesn\u2019t properly pay employees and if the same company also hires underage children? Are companies required to combine the hours worked by employees who work at multiple locations? If an employee is not a U.S.\u2026","rel":"","context":"In "HR Newsletter"","block_context":{"text":"HR Newsletter","link":"https:\/\/www.employco.com\/blog\/category\/employco-in-the-news\/hr-newsletter\/"},"img":{"alt_text":"HR Newsletter: Real-World Case Studies \u2013 Wage and Hour Violations","src":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/hr\/Blog\/May2023_CaseStudies.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/hr\/Blog\/May2023_CaseStudies.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/hr\/Blog\/May2023_CaseStudies.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/hr\/Blog\/May2023_CaseStudies.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/hr\/Blog\/May2023_CaseStudies.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":3477,"url":"https:\/\/www.employco.com\/blog\/2021\/06\/14\/hr-newsletter-minimum-wage\/","url_meta":{"origin":5899,"position":4},"title":"HR Newsletter: Minimum Wage","author":"Employco USA","date":"June 14, 2021","format":false,"excerpt":"The current federal minimum wage rate is $7.25 per hour. However, many states have adopted minimum wage rates higher than the federal rate. When the state rate and the federal rate are different, employers must pay their employees the higher rate. Click the image below or this link for a\u2026","rel":"","context":"In "HR Newsletter"","block_context":{"text":"HR Newsletter","link":"https:\/\/www.employco.com\/blog\/category\/employco-in-the-news\/hr-newsletter\/"},"img":{"alt_text":"Minimum Wage Updates","src":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/June2021_Minimum-Wage-Updates_2021.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/June2021_Minimum-Wage-Updates_2021.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/June2021_Minimum-Wage-Updates_2021.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/June2021_Minimum-Wage-Updates_2021.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/June2021_Minimum-Wage-Updates_2021.png?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":5378,"url":"https:\/\/www.employco.com\/blog\/2024\/05\/23\/hr-newsletter-wage-hour-violations-4-real-world-examples\/","url_meta":{"origin":5899,"position":5},"title":"HR Newsletter: Wage & Hour Violations: 4 Real-World Examples","author":"Employco USA","date":"May 23, 2024","format":false,"excerpt":"We\u2019ve compiled a report that contains case studies published in 2024 that explore the most recent, real-world examples of employers found to be in violation of wage and hour laws. These case studies include snapshots of violations and general guidance on how employers can prevent similar issues. Employers can examine\u2026","rel":"","context":"In "HR Newsletter"","block_context":{"text":"HR Newsletter","link":"https:\/\/www.employco.com\/blog\/category\/employco-in-the-news\/hr-newsletter\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/posts\/5899","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/comments?post=5899"}],"version-history":[{"count":3,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/posts\/5899\/revisions"}],"predecessor-version":[{"id":5902,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/posts\/5899\/revisions\/5902"}],"wp:attachment":[{"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/media?parent=5899"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/categories?post=5899"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/tags?post=5899"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}