Adriana Herrera, PayDestiny FounderThis article shares the Average Raise After 1 Year of Work and the average raise percent information you’re looking for.

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Average Raise After 1 Year of Work: Answer (2022)

by | Last updated Sep 21, 2022

Average Raise After 1 Year of Work (Icon)

Are you wondering what the average raise after 1 year of work is? Curious about how much you could potentially earn during your career?

This article dives into average salary increases over different periods of time. You’ll learn the typical raise after 6 months, the average salary increase over 5 years, and the average salary increase over 10 years. What you discover might surprise you!

Being paid well for a job well done is a priority for everyone. With the information in this article you’ll understand what impacts your pay raises and how to maximize your pay raise.

If you’re ready to learn the average raise percent after 6 months, 1 year, 5 years, and 10 years of work then keep reading!

Average Raise After 1 Year of Work (Icon)

Average Raise After 1 Year of Work

Average Raise After 1 Year of Work

In the United States the current average raise after 1 year of work is 3.73%. However, the best way to determine what your average raise after 1 year of work should be is to use average raise percent increases reported by the U.S. Bureau of Labor based on sector.

Average raise after 1 year of work by sector (from June 2021 – June 2022):

  • 5.3% average raise for civilian workers
  • 5.7% average raise for private industry workers
  • 3.2% average raise for state and local government workers

As the data shows, private industry workers garnered the largest annual raise. The type of company you work at impacts your pay and average pay raises. For example, remote engineers at Series C and Series D startups earn more than engineers performing the same job duties at Seed Stage, Series A, and publicly traded companies.

Despite national average raise statistics an annual pay raise can be even higher when an intentional process is run to get your boss invested in your success and ask for and negotiate your annual pay raise. Additionally, you don’t have to wait until you’ve worked for one year to be granted a raise or ask for one. There are 21 reasons to ask for a raise. Waiting for an annual raise can result in leaving money on the table.

Do you want to step-by-step help to ask for a meaningful pay raise?

If so, create your PayDestiny account to access tools to maximize your base pay, stock options, job perks and more!

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Typical Raise After 6 Months

Typical Raise After 6 Months | Average Raise After 1 Year of Work

When a company has a practice of issuing a raise after 6 months of employment it signals one of two things:

  1. The company issues starting pay that is below market rate and implements a mental game with employees to make them believe they are being rewarded with an salary increase after 6 months when in fact the starting pay was below market and the raise after 6 months just gets them closer to or gets them to market rate
  2. The company authentically values its employees and has processes to review, analyze, and reward performance, to create opportunities for career growth, and to retain top performers

To figure out what type of company you work for when you’re up for a 6 month raise ask your employer:

  • What city does the company use to benchmark pay?
  • What is the formula used to calculate my pay raise?
  • Where does my pay fall on the compa ratio for this position?

The answers you receive to these questions will provide you with the information you need to determine if the company you are working for is strategically playing compensation games or values its employees and wants to keep you growing with the company.

At minimum a typical raise after 6 months should reflect:

  • If you are performing additional expected job duties and responsibilities that were not included in the job description but were in fact part of the job
  • If you have been assigned additional job duties and responsibilities that were not in your initial job description
  • What the market is paying someone with your education, training, skills, experience, and track record of success to perform the job’s duties and responsibilities
  • What the company is paying co-workers in the same position with the same level of performance and outcomes, training, skills, and experience
  • Your mastery of your job description
  • Your contributions to the company

Using the variables above you can determine what your raise after 6 months should be.

Average Salary Increase Over 5 years

Average Salary Increase Over 5 years | Average Raise After 1 Year of Work

The average salary increase over 5 years depends on the following variables:

  • If you stay at one company for five years
  • How often you find new opportunities at different companies to perform the same job and job duties (i.e. job hop) for more money

A person that changes jobs every one to two years will exponentially increase their earnings over a period of 5 years. This is because when an employee job hops to a similar position at a new company on average their salary will increase 9.7%. When implementing best practices to negotiate a higher salary this salary increase can be over 30%.

Let’s look at how the math works over time.

Average salary increase over 5 years (Staying at the same job variables):

  • Average U.S. salary: $56,310.00
  • Average raise percent per year: 3.73%
  • Average raise in dollars: $2,100.36
  • Impact on earnings due to inflation: -1.7%
  • Annual salary increase after inflation: 2.03%
  • Annual salary increase in dollars after inflation: $1,143.00

 

Average Salary Increase: Staying at the Same Job for 5 Years

YearAnnual Base Pay
1$57,453.09
2$58,619.39
3$59,809.36
4$61,023.49
5$62,262.27
Average Salary Increase Over 5 years$4,809.18

Average salary increase over 5 years (Job hopping two times in 5 years variables):

  • Average U.S. salary: $56,310.00
  • Average raise percent per year: 3.73%
  • Average raise in dollars: $2,100.36
  • Impact on earnings due to inflation: -1.7%
  • Annual salary increase after inflation: 2.03%
  • Annual salary increase in dollars after inflation: $1,143.00
  • Average salary increase job hopping: 9.7%
  • Average salary increase job hopping after inflation: 8.0%

 

Average Salary Increase: Job Hopping Two Times within a 5 Year Period

YearAnnual Base Pay
1$57,453.09
2$58,619.39
3$63,308.94
4$64,594.11
5$69,761.64
Average Salary Increase Over 5 years$12,308.55

Average salary increase over 5 years (Job hopping every year over a 5 year period variables):

  • Average U.S. salary: $56,310.00
  • Average raise percent per year: 3.73%
  • Average raise in dollars: $2,100.36
  • Impact on earnings due to inflation: -1.7%
  • Annual salary increase after inflation: 2.03%
  • Annual salary increase in dollars after inflation: $1,143.00
  • Average salary increase job hopping: 9.7%
  • Average salary increase job hopping after inflation: 8.0%

 

Average Salary Increase: Job Hopping Every Year within a 5 Year Period

YearAnnual Base Pay
1$57,453.09
2$62,049.34
3$67,013.29
4$72,374.35
5$78,164.30
Average Salary Increase Over 5 years$20,711.21

Average Salary Increase Over 5 Years Comparison

YearStaying at the Same Job for 5 YearsJob Hopping Two Times within a 5 Year PeriodJob Hopping Every Year
1$57,453.09$57,453.09$57,453.09
2$58,619.39$58,619.39$62,049.34
3$59,809.36

$63,308.94$67,013.29
4$61,023.49$64,594.11$72,374.35
5$62,262.27$69,761.64$78,164.30
Average Salary Increase Over 5 years$4,809.18$12,308.55$20,711.21

Average Salary Increase Over 5 Years (Chart)

The data above details the average salary increase for someone in the same position over time. What the data above doesn’t account for is job promotions. In reality for a motivated individual the average salary increase will be more than outlined above when promotions are factored in. However, given that promotions and their value are hyper dependent on career path, motivation, skill development, contributions to a company, etc. they were left out of the average salary increase over 5 years models above.

While job hopping every year may look appealing, changing jobs every year can also hurt your career long-term. A resume where a person has changed jobs every 12-months is alarming and is full of red flags. Hiring managers will see a person that job hops every year as:

  • A potentially problematic employee
  • An employee that only cares about money
  • Someone that will cost the company money in operational loss and turnover in 12-months thus someone not worth hiring (regardless of their abilities)

Having a resume with these red flags can end up hurting your long-term earning potential rather than help.

Average Salary Increase Over 10 years

Average Salary Increase Over 10 Years | Average Raise After 1 Year of Work

If we use the same variables above, begin with the average national salary of $56,310.00, and expand our average salary increase over 5 year data to ten years we get the following:

  • Average salary increase over 10 years staying at the same job performing the same job: $11,164.00
  • Average salary increase over 10 years changing jobs every two years performing the same job: $28,974.00

Average Salary Increase Over 10 Years Comparison

YearStaying at the Same Job for 10 YearsJob Hopping Every Two Years Over 10 Years
1$57,453.09

$57,453.09

2$58,619.39


$58,619.39

3$59,809.36

$63,308.94

4$61,023.49

$64,594.11

5$62,262.27

$69,761.64

6$63,526.20$71,177.80

7$64,815.78

$76,872.03

8$66,131.54

$78,432.53

9$67,474.01

$84,707.13

10$68,843.73

$86,426.69

Total Salary Increase Over 10 Years$11,164.00$28.974.00

The career earning difference between performing the same job duties at the same company for 10 years versus performing the same job duties at different companies every two years is a difference of $17,810.00.

The pandemic and The Great Resignation brought to light how much companies are losing in employee turnover costs by issuing the standard average raise percent increase of 3.73%. This operational deficit has employers evolving their pay raise practices to be competitive with what talented job hopping employees earn when changing employers.

To maximize career earnings at a company where you’re happy, get negotiation leverage and run an annual process to ask for a raise. If you don’t get the salary increase you’re looking for then you can switch employers and accept opportunities that give you a better salary increase.

Average Raise After 1 Year of Work (FAQs)

Average Raise After 1 Year of Work (FAQs)

Average Raise After 1 Year of Work (FAQs):

How much of a raise is worth changing jobs?

On average when you change jobs you’ll increase your earnings performing the same duties by 9.7% compared to the national average raise of 3.73% when staying at the same company. When switching companies for more pay it’s important to consider things like career growth and the value of your total rewards package. While the base pay may be more the overall total rewards may not be resulting in more out of pocket costs for things like insurance, travel, gym memberships, etc. The raise that is worth changing jobs is an increase in both your base pay and total rewards package.

How much of a raise should I get after 1 year?

The minimum raise you get after 1 year should reflect the national average 3.73%. However, the raise you should get after 1 year should reflect:

  • What the market is paying
  • Where your pay falls on the companies compa ratio scale for your position
  • Your contributions to your company
  • If you have a specialized skill that the company relies on (e.g. Bilingual, algorithm development, etc.)

How much of a raise should I ask for after 2 years?

After two years of being at the same job, if you were to job hop to another company where you performed the same job duties on average you’d increase your pay by 9.7%. As such if you are a valued employee your raise after two years should be at least 9.7% versus the national annual pay raise average of 3.73%.

How much should your pay increase per year?

Each year you should get a cost of living adjustment to keep up with rising costs of goods and services (i.e. inflation) and a pay increase based on your performance and/or your company’s pay raise practices. The national pay increase when staying at the same job is currently 3.2% – 5.7% with the average being 3.73%.

What is a good raise percentage 2022?

The average raise nationally from June 2021 to June 2022 was 3.73%. However, this raise is actually 2.03% when a -1.7% inflation rate is accounted for. A person who leaves their company to perform the same job duties at another company on average increases their pay by 9.7%. Consequently, a good raise percentage in 2022 is a raise that is equivalent to or more than what you’d earn if you job hopped, 9.7%.

What is a typical yearly raise?

The typical yearly raise from June 2021 to June 2022 in the United States was 3.73%. The typical yearly raise based on sector is as follows:

  • Average percent raise for civilian workers = 5.3%
  • Average percent raise for private industry workers = 5.7%
  • Average percent raise for state and local government workers = 3.2%

Key Takeaways

  • The average raise after 1 year of work in the United States from June 2021 to June 2022 was 3.73%.
  • The average raise after 1 year of work in the United States for civilian workers from June 2021 to June 2022 was 5.3%.
  • The average raise after 1 year of work in the United States for private industry workers from June 2021 to June 2022 was 5.7%.
  • The average raise after 1 year of work in the United States for state and local government from June 2021 to June 2022 was 3.2%.
  • The average percent raise when leaving your company to perform the same job duties at another company is 9.7%.
  • The average salary increase over 5 years when job hopping every other year is $12,308.55 compared to $4,809.18 when staying at the same company.
  • The average salary increase over 10 years when job hopping every other year is $28,974.00 compared to $11,164.00 when staying at the same company.

Now, I’ll turn it over to you!

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