Types of Pay Raises You Will Encounter
Types of pay raises and their negotiability
| Type of Raise | What It Is | Negotiable? |
|---|---|---|
| Cost-of-Living (COLA) | Inflation offset, same % for everyone | Rarely |
| Merit Raise | Performance-based individual increase | Yes — performance is debatable |
| Promotion Raise | Increase tied to new title and responsibilities | Yes — typically 10-20% |
| Market Adjustment | Correction to bring salary to market rate | Sometimes — requires data |
| Equity Raise | Correcting pay gap or underpayment | Yes — use HR equity process |
| Tenure Raise | Automatic increase after X months/years | Rarely — set by policy |
When Do Pay Raises Typically Happen?
Most corporate employers have annual salary review cycles running in Q1 (January-March), timed to coincide with the fiscal year start. Outside of these cycles, raises can happen at promotion, when you have a competing offer, or when your manager advocates for an off-cycle adjustment. Knowing your company’s cycle is critical — asking at the wrong time reduces your chances significantly.
In your first month at a new job, ask your manager: 'When does the compensation review cycle run?' This tells you when budget decisions are made — and when you need your performance documented and visible.
How Much Should You Expect?
Typical raise ranges by performance rating level
| Performance Level | Typical Raise Range | What It Signals |
|---|---|---|
| Below expectations | 0-1% | PIP risk — time to improve or move on |
| Meets expectations | 2-3.5% | Standard — you kept your job |
| Exceeds expectations | 4-6% | You are valued, strong performer |
| Outstanding / top performer | 7-10%+ | Retain-at-all-costs treatment |
| Promotion | 10-25% | New role, new pay band |
How to Ask for a Raise as a Beginner
- Research your market rate using Glassdoor, LinkedIn Salary, or BLS data
- List three to five specific contributions with measurable outcomes from the past year
- Choose your timing — after a win, before the budget cycle, or during your review
- Schedule a dedicated conversation — do not ask in passing or in a group setting
- State a specific number: 'I would like to reach $62,000' not 'somewhere around $60-65K'
- Be prepared for yes, no, or 'let me think about it' — have a response ready for each
Many employees wait too long, assuming raises will come automatically. After 12-18 months with no compensation conversation, initiate one. It sets an important precedent for your value at the company.
Find Out What Your Raise Is Worth
Use the pay raise calculator to see exactly how much more you will earn with any raise percentage.