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Survey: For many, wages up almost 5% this year and more hikes are coming

A survey this month found that about two-thirds of U.S. employers said they made wage and salary boosts above 4% this year, while a quarter increased pay by more than 6%. File Photo by FotograFFF/Shutterstock/UPI
A survey this month found that about two-thirds of U.S. employers said they made wage and salary boosts above 4% this year, while a quarter increased pay by more than 6%. File Photo by FotograFFF/Shutterstock/UPI

June 9 (UPI) -- As inflation hovers at a 40-year high and with many wages already up by almost 5% this year, some U.S. employers are looking to raise worker pay again this year, according to a survey.

The Pearl Meyer compensation planning survey this month says that base wage and salary hikes this year were 4.8% for all employee groups combined, and found that about a third of employers are planning mid-year hikes.

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"Based on participant responses collected during the third quarter of 2021, Pear Meyer's annual, in-depth compensation planning survey projected that 2022 salary increase budgets would be consistent with previous years. However, after that survey was conducted, inflation continued to rise through the fall and the labor market became even more competitive," the survey states.

Pearl Meyer said total base salary increases hovered in the low 3% range for the past two decades.

RELATED Analysis says most U.S. workers need major pay increase to earn living wage

Two-thirds of employers surveyed made wage and salary boosts above 4% this year, while a quarter of them increased pay by more than 6%.

"Most companies are giving thoughtful consideration to mid-year increases and are providing them to key employees, targeted job families, and top performers rather than granting increases across the board," the survey said, noting that most of the organizations surveyed, 64%, said they're not planning a mid-year pay increase.

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As some employers raise wages, a report by the University of Wisconsin Population Health Institute found this year that worker compensation is still way behind what workers need to earn living wages.

RELATED U.S. workers' pay rose by 1.5% in Q3; biggest hike in decades

The Wisconsin report found that most American workers need pay raises of more than 70% before earning a living wage -- and the average living wage across all U.S. counties for one adult and three children is roughly $36 per hour.

RELATED Walmart raises wages of 565K employees by $1

RELATED Biden plans to raise federal civilian employee pay 2.7% next year

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