# Here's How Big Your Raise Will Be Next Year (and How You Can Increase It)
Employers are charting a cautious course for 2025 pay raises, caught between two competing pressures: the lingering effects of inflation and the rising costs of implementing artificial intelligence systems. New research reveals that these forces will determine whether your paycheck grows or stagnates next year.
The data paints a mixed picture for workers. Companies remain mindful of inflation's impact on their budgets and worker purchasing power. At the same time, many organizations are investing heavily in AI tools and infrastructure, diverting capital that might otherwise flow into salary increases. The result is that raise expectations have shifted from the pandemic-era bumps that characterized 2021 and 2022.
**What employers are planning.**
Most employers expect to award raises between 3 and 4 percent in 2025, according to recent salary surveys. This falls below the current inflation rate in many sectors, meaning real wage growth remains flat for many workers. Some industries, particularly technology and healthcare, may offer slightly higher increases due to tight labor markets. Other sectors, especially retail and hospitality, continue to squeeze salary growth tighter.
**The AI factor.**
Companies investing in artificial intelligence often face a dilemma: fund technology adoption or fund workforce compensation. Many large corporations are choosing both, but at different speeds. Organizations that view AI as a cost-cutting measure may justify lower raises by claiming efficiency gains will benefit everyone. Those using AI to expand operations are more likely to pay competitively to retain talent needed to manage these systems.
**What you can do.**
Waiting passively for your employer's raise cycle rarely produces the best results. Workers who secure promotions, take on new responsibilities, or develop skills in high-demand areas typically receive larger increases than the company standard. Learning AI tools relevant to your industry positions you as a valuable asset during this transition period.
Changing jobs remains one of the fastest ways to boost your salary. Workers who switch employers often see raises of 10 to 20 percent compared to the 3 to 4 percent internal increases most companies offer. Job-hopping carries risks, but strategic moves to roles where your skills command premium pay can compound significant wealth gains over time.
Documentation matters. Track your achievements, revenue impact, and cost savings you generate. When raise discussions arrive, specific evidence of your value outweighs vague appeals for more money. Request meetings with your manager before formal review cycles begin to discuss compensation expectations.
**The bottom line for your wallet.**
If your employer offers a raise below 3 percent in 2025, you are losing ground to inflation. A raise of exactly 3 percent maintains current purchasing power but generates no real wealth growth. Anything above 4 percent represents genuine improvement in your financial position.
The AI-driven workplace transformation happening now will reshape skill premiums over the next few years. Workers who anticipate these changes and build relevant expertise will negotiate from positions of strength. Those who wait for raises to come to them will likely fall further behind.