Inflation, Labor Market Drive Merit Pay Increases for 2024

By Michael J. O'Brien


Inflationary pressures and concerns about a tight labor market continue to cloud the horizon as a trio of surveys point the way forward on 2024 compensation plans. 

U.S. employers forecast raising their merit increase budgets by 3.5% and total salary increase budgets by 3.8% on average for 2024, according to Mercer's U.S. Compensation Planning Survey November 2023 edition.  

WorldatWork’s “2023-24 Salary Budget Survey” of 2,146 participating organizations found U.S. employers are projecting 4.1% pay increase budgets in 2024 and 3.6% merit increases on average. 

Meanwhile, employers are planning an overall average salary increase of…

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