How much of a raise should I ask for after one year? Get the answer now

Salary compensation is something that you need to be proactive about, as it affects your standard of living, and learning to negotiate your salary will help you get the income you deserve. If you've been at your job for a year, you're no longer a "newbie" and have developed skills and knowledge that have value to your employer. At this point, you might be thinking, "How much of a raise should I ask for after one year?" You'll need to do some homework before sitting down with your manager so that you understand the average salary for someone in your role, industry, and market and have the data to back up your request.

In this article, we’ll discuss:

• How much of a pay increase should you expect after one year?

• Is one year a good time to ask for a raise?

• Can you ask for a 20% raise after a year?

• Can asking for a raise backfire?

• What is an average raise in 2024?

• When should you not ask for a raise?

How much of a pay increase should you expect after one year?

In today’s economy, you can’t really “expect” a pay increase, as companies are not obligated by law to offer one, but you can negotiate. In general, you should ask for a raise no more than once a year and not before you’ve been in your position for at least six months. Many companies do offer a cost of living increase, which as of December 2023 was 3.2%. If you had a great evaluation or you’ve recently taken on additional responsibilities, it’s not out of line to ask for more than that. It also depends on where you are in the salary range established for your position; the closer you are to the low end, the more leeway you have to negotiate a higher raise. 

Deciding on an exact number can be a little challenging, as you don’t want to leave money on the table, but you also don’t want to negotiate yourself out of a job. Taking into account the typical cost of living increase, as well as the current Consumer Price Index (CPI) of 3.5% as of March 2024, you might think that asking for seven percent should be the target. But that might not be the right number, as you need to take into account the salary amounts for your position and also the salary rates across the board. A good number to ask for is 10-15% above your current salary. But be prepared for the fact that you might not get it, or the company may offer you compensation in other forms, such as PTO or a flexible work schedule. If you need extra help figuring out how much to ask for, Career.io’s Salary Analyzer will help you determine how much your skills are worth in today’s market.

Is one year a good time to ask for a raise?

In general, yes, assuming you’ve been in your position for at least a year, have a good job performance, and have not received any other salary increase. If you’re at the one-year point in your job, you’re also probably ready for your annual employee evaluation, and this is a good time to ask for additional compensation. Unless you’ve been unexpectedly assigned significantly more responsibilities that are outside the original scope of your job description, you should wait until the one-year mark before asking for a pay raise.

You also need to take into consideration your employer’s budget cycle, or when they generally offer raises (assuming that they do). Most companies do this around an employee’s start date, but some companies adjust everyone’s salary at one time, based on the fiscal year. If that’s the case, have a sit-down with your manager in advance (one to two months prior) so that you can start your negotiations at that time. Otherwise, you might “miss the boat” and have to wait until the following year.

Can you ask for a 20% raise after a year?

Asking for 20% is not unheard of, but you might be swinging for the fences. It’s the upper end of the salary raise you can reasonably ask for, and you really need to have the data and a compelling argument to back up your request. At the very least, it's a high starting point from which you need to be prepared to negotiate. You probably won't get it, especially if the company is offering, for example, five percent, but by starting high, you may get closer to a number that works for you. Whatever percentage you ask for, make sure it is supported by your position, geographic location, industry, job performance, and experience level.

When should you not ask for a raise?

Even if you’ve been at your job for a year, there are times when you will want to hold off on asking your employer for a raise, no matter how well deserved. As with most things, timing is everything. Here are five instances when you shouldn’t ask for a raise.

1. If the company is struggling financially

No matter how great an employee you are, if your company is in a financial crisis, it’s not a great time to ask for a raise, as they simply might not have the money. While some companies will make an effort to hold on to their top-performing workers and “shuffle” some money around, there's no guarantee. Asking for a raise during this time might come off as entitled or "tone-deaf."

2. If there’s a set raise schedule

If raises are given at a scheduled time on the calendar, it’s probably best to wait for that date. Whether it’s a company-wide schedule or on your start date anniversary, “going rogue” and asking for a raise when it’s not expected may not be productive. Also, if you’ve recently received a raise on that schedule, don’t ask for another one before then. Once a year is standard (unless you’re promoted).

3. If you don’t know how much to ask for

Asking for a salary increase is not the time to “wing it.” You’ll need to have solid data to back up your raise request. Don’t go into a salary negotiation without having done your research and having a specific number as a starting point.

4. If you haven’t taken on any new responsibilities

If you’ve been doing the exact same work for the last year, you’ll be hard-pressed to convince your employer that you deserve a raise (other than their standard cost-of-living raise). If this is your situation, before asking for an additional raise, request that you be considered for additional tasks or responsibilities. Your boss is more likely to acquiesce to your request if you've been able to demonstrate your worth to the company and show growth potential.

5. If you can’t answer the question, “Why do you deserve a raise?”

If you can’t back yourself up with a list of accomplishments, performance results, positive performance evaluations, and concrete examples of how you’ve helped the company reach its goals, you most likely won’t be successful in getting your raise. You need to be willing to advocate for yourself and ensure that you’re being paid for your skills, education, knowledge, and experience as well as the value you bring to the table.

If you’re looking to make a career change, Career.io’s Career Pathways tool can help you explore potential interests, identify skill gaps, and keep you updated on job demand and competitive salary information.

Key takeaways

1. In general, you should ask for a raise no more than once a year and not before you’ve been in your position for at least six months.

2. Many companies offer a cost of living increase, but if you had a great evaluation or you’ve recently taken on additional responsibilities, it’s not out of line to ask for 10-15%.

3. You shouldn’t ask for a raise if your company is struggling financially, you're not able to back up your request with measurable data, or you haven't taken on any new responsibilities.