Will You Be Getting A “Peanut Butter” Raise In 2026?

If you were an elephant and got paid in peanuts, you would be happy.  But you are a human and can't be paid in peanuts.

So why might you be happy with a peanut butter raise in Iowa or Illinois?  Or, if your company is handing out peanut butter raises in 2026, why might this infuriate you?

Will Companies Be Handing Out Raises In 2026?

Or maybe, you fall into the third bucket and your company is "in a tough spot" and they aren't giving raises at all this year.

If that is your company, then you are in the minority.  Nearly 75% of companies are planning to administer pay raises in 2026.  However, don't expect a big fat raise.

The average isn't really changing from 2025.  Pay hikes will stay at 3.5%, but smaller companies, those with 100 or fewer employees, will be around 4%, with mega companies, those with 10,000 or more emoployees will be in the 3% range.

Will Your Hard Work Pay Off With A Raise In 2026?

No.  It won't.

According to Payscale and CBS News, "44% of companies plan to rely on the peanut-butter approach.  A method of evenly spreading pay hikes across the workforce."

Employers are moving away from merit-based pay raises because it's "too subjective".  That's right.  The business is worried about hurting your slacker co-worker's feelings, so they get just as big a raise as you.

With that, what is your motivation to work hard?  Oh, I don't have an answer to that.  I was asking you.

If you are one of those hard workers and can't stand seeing your "motion light" coworker (someone who only does work when the boss walks by) get the same raise as you, maybe you can find a new job.  92% of companies plan to hire in 2026.  But also, 66% of companies plan to lay people off as jobs will be done by AI.

Good luck!