U.S. Firms Plan Average 3.3% Base Salary Increase for 2027
According to a Korn Ferry survey of over 5,500 employers conducted in June 2026, U.S. firms plan to increase base salary budgets by an average of 3.3% and a median of 3% in 2027. Nearly half (47%) expect to raise salaries for at least 95% of employees, while only 2% are planning no increases. The survey also highlights significant regional variations globally, with the highest salary hikes expected in Egypt (15.7%), Ukraine (10.0%), and India (8.3%). In contrast, Switzerland and France will see minimal changes at 1.7% and 2.6%, respectively. Korn Ferry advises companies to maintain a balanced approach amid economic uncertainty. Additionally, the report notes that incentive payouts are expected to remain stable for many organizations, with half projecting they'll meet or exceed targets this year.
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