Employers in the U.S. appear to have delivered on their compensation promises in 2026, according to new data from Mercer. However, a deeper look shows that a narrative about a wave of across-the-board pay increases doesn’t hold up under scrutiny.

The mean merit increase paid out this spring was 3.1%, just below the 3.2% employers projected back in October 2025, according to Mercer’s new QuickPulse US Compensation Planning Survey, which drew responses from 756 organizations. Average total increases, which include all pay adjustments beyond merit, came in at 3.4%, also one-tenth of a point below the fall forecast. READ MORE