Needham, Mass. -- Salary.com announced that on average workers across the country can expect a 3.7 percent pay raise in 2005. This is slightly higher than the 3.6 percent average in 2004 and is the second straight year that average pay raises have increased. Average salary increases bottomed out at a five year low of 3.4 percent in 2003 after reaching a five-year high of 4.4 percent in 2001.
What does this news mean? For the average worker earning $34,000 per year, he or she can expect to see a paycheck with an additional $24.19 per week. Someone making a salary of $100,000 can expect an increase of $71.15 per week.
"While average pay raises in 2005 are only slightly higher than last year, workers who last year received either no raise or one below the average might be pleasantly surprised to receive an above average raise this year to compensate," says Bill Coleman, Senior Vice President of Compensation at Salary.com. "Workers also may be pleased to know that their peers in the workforce expected an average raise of only 3.4 percent for 2005, a lower number than Salary.com predicts."
Five year trend of average salary increases
- 2001-- 4.4 percent
- 2002-- 3.7 percent (15.9 percent decrease from 2001)
- 2003-- 3.4 percent (8.1 percent decrease from 2002)
- 2004-- 3.6 percent (5.8 percent increase from 2003)
- 2005-- 3.7 percent (2.7 percent increase from 2004)