In Q2 2025, average raises of 3.9% resulted in a yearly increase of approximately $2,400 for typical workers.
With the job market rewarding skill and loyalty, employers handed out average raises of 3.9% year-over-year, building on earlier merit bumps.
According to the Bureau of Labor Statistics, wages and salaries rose 3.9% for the 12 months ending June 2025, surpassing the prior quarter, with median annual pay reaching $62,192 in Q2.
However, with inflation lingering near 2.5% and costs for housing, food, and fuel still high, it's essential to have a plan to make the most of the extra cash.
This guide provides proven hacks to turn extra pay into lasting wealth and joy in a rebounding economy, including automating savings and staying agile in the job market.
Make your raise work harder with battle-tested ways to achieve financial stability.
Author's summary: Boost your 2025 finances smartly.