The standard 3% annual pay raise will no longer cut it, largely due to inflationary pressures on everything from gas to household goods and higher employee wage expectations.

According to Payscale's Salary Budget Survey, employers are budgeting for an average 3.8% salary increase in 2024. Last year, employers expected the same increase for 2023, though actual pay increases were 4%. However, Payscale anticipates actual raises for next year will stay at 3.8% as inflation cools and the labor market loosens. In fact, 22% of surveyed employers plan to lower their salary budget increase next year, up from 9% last year. READ MORE