According to a new report from WTW, salary budget increases are expected to drop in 2025.
- 3.9% projected salary budget increases for 2025
- 4.1% median pay increase for 2024
- 4.5% median pay increase for 2023
Although these expected wage increases have diminished since 2023, this figure remains high compared to many previous pay cycles, where 3% was common.
Employer Takeaway – This report suggests that employers will continue increasing wages to keep up with inflation and remain competitive in the labor market. Although the high rate of employee resignations and turnover seen in recent years has subsided, compensation remains a critical factor for winning over workers. Organizations should expect wage increases to remain high for the foreseeable future.
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