A typical raise for a promotion falls in the range of 8% to 15% of your current salary, though the number varies significantly depending on the level of the role, the industry, and your company’s budget. For 2025, employers are offering an average promotional increase of 8.5%, according to data from the Society for Human Resource Management (SHRM). That’s meaningfully higher than the 3% to 4% merit raise most workers receive during annual review cycles, but it may still feel modest if your new responsibilities represent a major leap.
How Promotional Raises Compare to Merit Raises
A merit raise rewards you for doing your current job well. A promotional raise compensates you for stepping into a bigger role with more responsibility. The gap between the two matters because many employees confuse them or receive a blend of both during the same review cycle.
Merit increases across most employers currently average 2% to 3%, and total salary budget increases (which bundle merit, promotions, and other adjustments together) landed around 3.7% in 2025. Promotional increases, by contrast, typically start around 8% and can reach 15% to 25% for moves that involve a significant jump in scope, such as going from individual contributor to manager or from director to vice president. If your employer is offering you a “promotion” with a 3% raise, you’re essentially getting a merit bump repackaged with a new title.
What Affects the Size of a Promotional Raise
Several factors push the number higher or lower:
- Job level: Entry-level employees moving into their second role often land in the 8% to 12% range. Moves into management or senior leadership tend to carry larger adjustments, sometimes 15% to 25%, because the pay bands for those roles are significantly wider.
- Pay band positioning: If you’re already near the top of your current salary range and the new role’s range overlaps, your employer may offer a smaller percentage. If there’s a wide gap between your current pay and the midpoint of the new role’s range, you have more room for a larger bump.
- Industry and company size: Tech, finance, and healthcare companies with larger compensation budgets tend to offer more generous promotional raises. Smaller organizations or those in lower-margin industries may offset a smaller base salary increase with a title change, bonus eligibility, or equity.
- Budget timing: Companies that promote during the annual merit cycle sometimes blend the two increases together, which can make the promotional portion look smaller on paper. Promotions that happen mid-cycle, outside the normal budget window, sometimes receive more targeted funding.
The Gap Between Internal Promotions and External Offers
One of the most important numbers to keep in mind: external hires typically earn 18% to 20% more than internal employees promoted into similar roles. Hiring managers openly acknowledge that pulling someone away from a secure position usually requires a 10% to 20% premium. This is one reason employees who switch companies every few years often outearn those who stay, even if the internal employees are performing at the same level or higher.
That doesn’t mean you should automatically leave. Internal promotions come with advantages that don’t show up on a pay stub: you already know the organization, you have established relationships, and you face less risk of a poor culture fit. But it does mean that if your employer’s promotional offer feels low, you’re not imagining things. The market consistently prices external talent higher, and knowing this gives you leverage in a negotiation.
How to Negotiate a Higher Promotional Raise
Most promotional raises aren’t final when they’re first presented to you. Managers often have some flexibility, especially if the initial offer lands below the midpoint of the new role’s salary range. Here’s how to approach the conversation effectively.
Start by researching the market rate for the new title at companies of similar size in your industry. If the offer puts you well below market, say so directly and share the data. Frame your request around the value of the role, not your personal expenses or tenure. A statement like “the market midpoint for this role is $95,000, and I’d like to get closer to that number” is more persuasive than “I’ve been here five years and deserve more.”
If base salary is genuinely capped by budget constraints, ask about other levers. A signing bonus (even for an internal move), accelerated review timeline (a six-month check-in with a possible adjustment), additional equity, or a bump in bonus target percentage can all close the gap. Some companies will agree to revisit compensation after 90 days in the new role, which gives you a second opportunity to advocate for yourself once you’ve demonstrated results at the higher level.
When a Promotion Raise Is Too Low
If your employer offers less than 5% for a role with meaningfully more responsibility, it’s worth pausing before accepting. A small raise paired with a bigger workload can actually decrease your effective hourly pay. It can also anchor your salary lower for future raises and promotions, since most percentage increases are calculated off your current base.
Ask your manager to walk you through the compensation band for the new role and where you’d sit within it. If you’re being placed at the bottom of a wide range, request a written plan for how your pay will progress as you grow into the position. Getting specifics in writing protects you from vague promises that never materialize during the next budget cycle.