Wage Growth and Merit Budget Data
Ten quarters of U.S. wage growth from the BLS Employment Cost Index, the benchmark HR teams use to set merit budgets, with benefits-cost trends alongside.
The ECI is the cleanest read on how fast employer labour costs are actually rising, because it holds job mix constant rather than reflecting who happened to get hired. If ECI says wages grew 3.2% over the year, a 3.0% merit pool is below market, and the gap compounds across every cycle you run.
BLS Employment Cost Index, Q2 2026, released 31 July 2026. Inflation comparison uses CPI-U. Next ECI release: 30 October 2026. Free to use, no account required.
Comp Trends
BLS Employment Cost Index · how fast wages are growing across the economy
| Benefit | Small (<100) | Medium (100-499) | Large (500+) |
|---|---|---|---|
| Retirement plans | 59% | 85% | 91% |
| Medical care | 59% | 83% | 90% |
| Paid sick leave | 74% | 87% | 91% |
| Paid vacation | 72% | 87% | 91% |
| Life insurance | 44% | 71% | 86% |
Common questions
What is a good merit increase budget for 2026?
BLS ECI shows civilian wages grew 3.2% over the year to Q2 2026, so a merit pool in the 3.2% to 3.5% range is market-aligned. Note that CPI-U is running near 3.5%, meaning a market-matching increase no longer fully protects purchasing power.
What is the Employment Cost Index?
A quarterly BLS measure of how fast employer costs for wages and benefits are rising, holding job mix constant. It is the standard reference for merit-budget planning because it isolates pay changes from shifts in who is employed.
How often is wage growth data updated?
The ECI is published quarterly, roughly four weeks after each quarter ends. CompSignal refreshes within days of each release.