Media Contact: Heather Nezich, Manager, Communications, ASE, 248.223.8040, hnezich@aseonline.org

Troy, MI – August 24, 2026 – The American Society of Employers' (ASE) 2026/2027 Salary Budget Survey shows salary increase budgets holding essentially flat compared to last year, even as more employers appear to be engaging earlier in 2027 planning conversations than they were at this point a year ago. Based on responses from 196 organizations across Michigan, the survey tracks actual and projected salary adjustments.

Average total increase budgets for 2026, including organizations that budgeted a wage freeze, came in at roughly 3.1% across all employee categories, essentially in line with the 3.1% employers reported for 2025, and modestly below the 3.3% average that employers had projected for 2026 in last year's survey. Employers are now projecting a slight uptick to about 3.2% for 2027.

Planning remains unsettled, though engagement is clearly building: Just 9% of employers say their 2027 program is determined or already executed, similar to the 11% who had finalized 2026 plans at this same point last year, but 46% are now actively discussing options, up from 35% a year ago. Only 45% have yet to begin those conversations, down from 53% last year.

Highlights of the ASE 2026/2027 Salary Budget Survey include:

• Average actual total increase budgets (any combination of merit, general, or other increases) for 2026 were:
  • 3.2% (Nonexempt, Hourly, Nonunion)
  • 3.1% (Nonexempt, Salaried)
  • 3.3% (Exempt, Salaried)
  • 2.9% (Officers/Executives)
• Average projected total increase budgets for 2027 are:
  • 3.3% (Nonexempt, Hourly, Nonunion)
  • 3.2% (Nonexempt, Salaried)
  • 3.2% (Exempt, Salaried)
  • 3.1% (Officers/Executives)
• The average pay increase for top performers in 2026 was 4.6%.  This is up from 4.3% in 2025 and more than a full point above the general workforce average.  This suggests that employers are continuing to concentrate limited budget dollars on retaining and rewarding their strongest talent.
• In the past 12 months, 57% of employers made market or competitive adjustments outside their normal review cycle, while 37% made retention or critical-skill adjustments. Thirty percent made internal equity adjustments.
• Thirty-eight percent of employers now use lump-sum payments in lieu of salary increases, most often for employees already at or beyond their pay range maximum (80% of those using lump sums).
• Just 23% of organizations formally budget for promotions, though those that do typically award increases of 6% to 8% of base salary depending on employee classification.

“Employers are holding the line on overall budgets while still finding targeted ways to reward top performers and address retention risks” says Mary Corrado, President & CEO. “What's notable this year is that far more organizations are already at the table discussing 2027 numbers compared to where we were on 2026 planning a year ago. That suggests employers want more clarity before committing, but they're not waiting until the last minute to start the conversation.”

The survey report is available in the ASE Survey Library.

Background information on the ASE 2026/2027 Salary Budget Survey:

196 organizations participated. Organizations with 100 employees or fewer made up approximately 38.3% of the survey sample, those with 101–499 employees represented 42.9%, and the remaining 18.9% came from organizations with 500 or more employees. Durable goods manufacturing (44.4%) led industry representation, followed by trades and services (24.5%). Southeast Michigan accounted for 63.3% of respondents.

About ASE

ASE is employers' trusted partner for Everything HR. ASE is a non-profit, membership organization – everything we do is based on the needs of members and to drive the success of their organizations and help them THRIVE. ASE strengthens organizations' HR departments by offering member benefits and discounted services that span the entire employee lifecycle including recruitment, development, and retention while minimizing compliance risk. We provide our members guidance through new legislation and workplace issues. Learn more about ASE at www.aseonline.org.