How much should your salary increase in 10 years?

Updated on : December 3, 2021 by Aiden Ross



How much should your salary increase in 10 years?

There is no single answer that fits all professions. Let's face it, a lawyer's salary is going to go up a higher percentage than a cashier's. But there are at least a few rules of thumb you can use: You need to stay ahead of inflation.

Since inflation changes from year to year, it is reasonable that increases also vary accordingly. At the very least, I would say that you would have to beat inflation by 1% to have an ever-increasing standard of living. I made my money through salary, not stock options and the like, and my salary increased 6-fold in 28 years, a little over 6.5% per year. I checked Historical inflation rates: 19

Keep reading

There is no single answer that fits all professions. Let's face it, a lawyer's salary is going to go up a higher percentage than a cashier's. But there are at least a few rules of thumb you can use: You need to stay ahead of inflation.

Since inflation changes from year to year, it is reasonable that increases also vary accordingly. At the very least, I would say that you would have to beat inflation by 1% to have an ever-increasing standard of living. I made my money through salary, not stock options and the like, and my salary increased 6-fold in 28 years, a little over 6.5% per year. I checked Historical Inflation Rates: 1914-2020 and the geometric mean of annual inflation was 2.95%, so I did about 3.5% on inflation. However, in practical terms of cash after expenses, I did better because I had a fixed price mortgage and as all other costs went up, the mortgage payment didn't and that was my biggest expense until it was paid off. . .

If you can't stay ahead of inflation, it's time to find a new job. Your standard of living will only decrease with time. What should your salary be after ten years? Inflation plus 1% should be a minimum, but you really want more. This is for a generic job. For higher paying professions, professional degrees (MD, JD, that guy), you should do a lot better and you should do better for STEM jobs too.

An annual increase of 15-20% can be considered a good increase in a stable job, as long as you can easily invest 50% of your wealth generated annually in a savings or wealth-building program that provides at least 8% annually, this makes sure that, in addition to your increase, the wealth you already had also grows annually at 8% annually.

Also, in an average of 10 years, if you changed companies twice, with each change you can expect a 50% increase.

So, in short, 3.3 times in 10 years can be considered good.

15 * 10 = 150% - From increment

8 * 10 = 80% - From the wealth creation program

50 + 50 = 100% - From 2

Keep reading

An annual increase of 15-20% can be considered a good increase in a stable job, as long as you can easily invest 50% of your wealth generated annually in a savings or wealth-building program that provides at least 8% annually, this makes sure that, in addition to your increase, the wealth you already had also grows annually at 8% annually.

Also, in an average of 10 years, if you changed companies twice, with each change you can expect a 50% increase.

So, in short, 3.3 times in 10 years can be considered good.

15 * 10 = 150% - From increment

8 * 10 = 80% - From the wealth creation program

50 + 50 = 100% - From 2 job changes

150 + 80 + 100 = 330% - 3.3 times

The idea is to put the money saved also into work to generate more wealth for yourself in these 10 years and lead a stress-free life, not just change or fall behind the increase.

There is no hard and fast rule.

Obviously, your salary should, at a minimum, keep up with inflation / cost of living. Your salary should reflect your impact on the business, the value you create for the business, and how difficult it is to replace you.

Some people are perfectly happy to continue in the same position throughout their careers and do not want to move up the ladder. Some people want to move up. It is a matter of personal preference.

There is no limit to how much it should increase.

But there is a minimum, you have to beat inflation. With that in mind, your annual salary increase should be at least 5% to 6%.

It should increase as much as inflation. If inflation was 7.2% per year (not likely), your salary should double.

It totally depends on your profession because each organization has its different salary policy according to its business and it also depends on the appointment of an individual.

If you perform above average, are a good communicator, and are good at what you do for a living, my five-year goal is more aggressive than the typical "take what you get" mentality, which says an annual increase. 4% in cash compensation. . They would tell you that earning 120% of your income from five years ago means you are on the right track.

I completely disagree with this thought (obviously). I have also had terrific mentors from the beginning of my career who pushed me to outperform my peers, provide my managers with quantifiable evidence of my worth on a regular basis (“This quarter, my approvals begin

Keep reading

If you perform above average, are a good communicator, and are good at what you do for a living, my five-year goal is more aggressive than the typical "take what you get" mentality, which says an annual increase. 4% in cash compensation. . They would tell you that earning 120% of your income from five years ago means you are on the right track.

I completely disagree with this thought (obviously). I have also had fantastic mentors from the beginning of my career who pushed me to outperform my peers, provide my managers with quantifiable evidence of my worth on a regular basis ("This quarter, my approvals initiative saved 2300 hours of work compared to previous process ";“ The redesign my team implemented to eliminate four steps in the online shopping process generated at least $ 44 million in new sales this fiscal year ”).

My mentor's strategy for me (which I use to this day as a founding partner of a niche consulting firm, and which I pass on to those I advise as well as those who work for me) was so simple and so smart I can't understand why it's not standard practice for top performers:

  1. Speak the language of those who have their careers in their hands: Executives view the world through spreadsheets and quarterly financial performance.
  2. If employees think of their work in terms of how the numbers are moving in the right direction on that spreadsheet, company leadership views that employee as a critical unique and identifiable asset, not as a “payroll expense” in set.
  3. Don't jot down, wait, or ask for a dollar figure (especially if that number is arbitrary or driven by the need to be paid above average). Instead, work hard to get results that positively move the numbers in as many cells as possible on your spreadsheets.
    1. Use your performance and hard numbers evidence when what you ask for changes the dynamic your boss expects during a review:
    2. You don't want a 7% raise or go from $ 125k to $ 140k. You want level progression.
  4. What is level progression? After presenting your evidence showing the money the company made, the expenses it cut, the sales it created, and the new markets it opened, tell the boss that you are not looking for a raise over what you are making now. Tell them that what you have done for the company places you in the top 5% of the company's workforce and show that you have added financial value when the expectation of your position is simply to be competent and on time. Because you are providing new customers at a rate that some account executives do not have, and creating efficiencies that product managers two or three levels above you are not, you want the company to evaluate your value and compensation in terms of what they offer.
  5. Your final move still implies that there are no questions or numbers ... just one question that you will realize is intentionally loaded only many hours after you make it: "I hope the company considers the significant value gained by having me as an employee, and creates a new approach to compensation for my new approach to doing my job. Ӡ

In five years, you shouldn't measure your career growth based on how your salary has increased over that period. First, the numbers are meaningless when one set is 2021 dollars and the other is 2026 dollars. The official inflation rate (~ 3.5%) is an accounting magic designed to keep markets confident. . You would have to analyze your overall expenses each year, weigh the same in the year and years after, to realize that the real cost of living to you is much more than the Consumer Price Index.

You can have a child; can marry; maybe buy a house, or buy a bigger and better one. Maybe your S / O has a chance in a different city across the country, and the cost of living in Nashville in 2021 is much, much less than your new cost of living in Manhattan, around 2023.

And I know a lot of smart people (some of whom forecast complex predictive models for the insurance industry), but none of them had a five-year plan with a contingency where two of those years were lost due to incompetence in handling the early days of a global pandemic and the protracted effort to simply get five billion people back to civilization and regular economic activity.

You saw? I did not do it. So focus on creating the value that places you at the top levels of your company and your industry. Challenge your boss to come up with a compensation package, not a raise, but an actual compensation package, that reflects your worth and demonstrates his desire for you to continue doing what you do for him. Hopefully, they will also realize that as high-performing professionals, corporate scouts and recruiters pick up their trail as a person to hire like sharks that detect a drop of blood in the ocean.

That means its positive impact should be reflected in the compensation package, plus additional compensation elements that make your current employer competitive if a top scout presents a "courtship" offer that I guarantee will not be salary and will not involve Raises. annual 4% on your salary.

Good luck and earn the value you provide, not the salary the company attributed to the job title.


† Author edit to original answer: I removed the second part of item n. 5 on the list above because it presents a negative proposition that most people would find difficult to fulfill and could affect many hiring managers the wrong way.

The deleted text is: “5. ... I would assume that the company would also consider the impact if they were no longer employed here, and what the compensation package would include to ensure that doesn't happen. "

Let me tell you my story. Most people have responded by saying it depends on location, technology blah blah. But I tell you it depends purely on your LUCK and your next hard job. I started my career at Mphasis as a technical support engineer with a very low 1.8 LPA package. Exactly in 6 months one of my friends refers me to a product-based company that offered me 5.2 LPAs for only 6 months of experience and for the same technical support profile. Obviously I was in shock and didn't believe what HR had told me until I saw the offer letter and realized it was real. And then yes, I am work

Keep reading

Let me tell you my story. Most people have responded by saying it depends on location, technology blah blah. But I tell you it depends purely on your LUCK and your next hard job. I started my career at Mphasis as a technical support engineer with a very low 1.8 LPA package. Exactly in 6 months one of my friends refers me to a product-based company that offered me 5.2 LPAs for only 6 months of experience and for the same technical support profile. Obviously I was in shock and didn't believe what HR had told me until I saw the offer letter and realized it was real. And then yes, I am a workaholic and I got an outstanding grade every year due to which I reached 7.2 LPA after 2 years. Then one fine day TCS calls me and I re-approve the interview for the same technical support profile and they offer me 8.5 LPA (-3.5 years experience) that I accepted because I had just finished my appraisal the previous month. Now for the interesting part. When I completed a year at TCS I got the walk TWICE. How? Did you know that there is something called a freshman assessment at TCS? In the induction session, the person in charge told you that you are the luckiest group because next year you would hike twice. Although I did not believe him again, they did appraise me twice. Because I had joined on March 23rd, a week before the financial year ended, I got the evaluation of the first year after the financial year, which is in April, the project evaluation came. Now I reached 9.9 lpa for 4.5 years of exp. Another year passed and I walked twice again. How? I got an outstanding grade in the project evaluation and I reached 11 lpa and also at the same time after a month I was promoted to nxt level (only the qualification) and today I have reached 12. 4 lpa for a total experience of 5.5 years and I'm still just an SME for a service desk. Now tell me, do you need technology or HARD WORK along with LUCK ????

My salary is 32k and my wife's salary is 12k per month. So our combined income for a month is 44k per month.

I am 34 years old, I am married and I have a son (8 years old). I work in a small Slaes company in Delhi and my wife works as a school teacher in a primary school. I want to provide the best education and facilities for my son. However, with my salary, I cannot send my son to an international school as their fees are more than my income.

We barely cover our needs with our salary. My heart aches every time my son demands a new toy, a bicycle, and anything fancy for kids. Many times with a hea

Keep reading

My salary is 32k and my wife's salary is 12k per month. So our combined income for a month is 44k per month.

I am 34 years old, I am married and I have a son (8 years old). I work in a small Slaes company in Delhi and my wife works as a school teacher in a primary school. I want to provide the best education and facilities for my son. However, with my salary, I cannot send my son to an international school as their fees are more than my income.

We barely cover our needs with our salary. My heart aches every time my son demands a new toy, a bicycle, and anything fancy for kids. Many times with a heavy heart I have to deny their demands. It feels so bad when I can't meet my son's little demands.

This is how we spend our wages:

  • We decided to save all of my wife's salary and cover the house expenses with my salary.
  • Rent - 8K for 1 room bhk.
  • Water + Electricity - Rs. 500–800 (we ask for RO water as tap water is not suitable for drinking)
  • Groceries + Vegetables: 2000 to 3000 rupees
  • EMI - Rs. 8k, I have taken out a home loan and it will be deducted for the next 10 years.
  • Other expenses - 1k - 2k for TV recharging, mobile recharging, etc.
  • Traveling - About 2.5k - My office is 15km from my house and I travel with my bike, so gasoline costs me about 1.5k per month. And the wife and son ride a DTC bus and because of the government plan, my wife does not have to buy tickets on the bus.
  • I send 4k per month to my parents who live in my village. I am the only child of my parents and I take care of them.
  • Rs 4k - 5k is what I can save each month from my salary.

I always live with the guilt that I should have studied hard in order to have a good career and a good salary. I was a tough-minded student in school and college. I was always a slow learner and graduated with a bachelor's degree in my hometown.

I am working hard to give my son everything. I want my son to become a doctor, since I could not fulfill my parents' dream of being a doctor. I want my son to become a doctor and fulfill my parents' dream. I will do whatever it takes for my son to help him be successful in life.

A2A - It totally depends on several factors:

  1. Your performance and results during the year
    1. If you have achieved all of your goals, you should see a higher increase than if you had not.
  2. The results of your department and company
    1. However, high performance may not be enough if the rest of your department doesn't do their part. You could reach 200% of your goals, but if everyone else only reaches 50%, your department is likely not meeting its goals, lowering your percentage increase in merit.
    2. If your department did well, but the overall company did not meet its objectives, there may not be more or the same amount of
Keep reading

A2A - It totally depends on several factors:

  1. Your performance and results during the year
    1. If you have achieved all of your goals, you should see a higher increase than if you had not.
  2. The results of your department and company
    1. However, high performance may not be enough if the rest of your department doesn't do their part. You could reach 200% of your goals, but if everyone else only reaches 50%, your department is likely not meeting its goals, lowering your percentage increase in merit.
    2. If your department did well, but the overall company did not meet its goals, there may not be more, or as much, in the augmentation group.
  3. Your current salary in the range of the position
    1. All other things being equal, most companies have a policy of giving larger raises to employees at the bottom of the job salary range and smaller raises to employees at the top of the range. If you are near or at the top of the range for the position, you can simply get a one-time bonus and not a salary increase.
  4. Your department's budget for annual increases and staff mix
    1. If your department did not get a lot of money budgeted for raises, then there is not a lot of money available to distribute.
    2. If your department has more lower-level employees, they are likely to get more of the department's increase budget, leaving less for you, on a percentage basis. If a key employee gets another offer and asks for a matching raise so they won't leave, your boss may have to put up with it and pay you, leaving less for everyone else.
  5. Your lifestyle, wants and needs
    1. An annual raise of $ 1,500 could be considered good for a lower-level employee who only makes $ 30,000 a year. But for a top level senior employee making $ 250k / yr, it could be considered an insult.
    2. The same size increase could be considered differently by two employees earning the same salary. Someone with needs, wants, hobbies, etc. Simpler ones will view a $ 2,000 raise differently than your friend who has expensive tastes and lives a richer lifestyle.
  6. Other considerations
    1. Is the position a union job? If so, the percentage is basically guaranteed through contractual negotiations, and everyone gets the same percentage or amount.
    2. How big is your company? Smaller companies are usually more stringent for annual increases and may not even have an annual review process, while larger companies almost always do.
    3. Are you on probation or do you think you need improvement? If so, you are probably not even eligible for a raise.
    4. How is the economy? Are the cost of living and inflation low or high? That has an impact on the overall base increase that most companies incorporate into their increase budgets.

Therefore, there is no way to answer this for anyone except yourself, as you know your job, department, and company best. You know what you want and expect, etc.

For me personally, at the moment, I would love something more than 3%, but I understand that my company is probably not in a position this year to make much more than 1.25% - 1.50%.

This largely depends on the general state of the economy, the general trend of your industry, the general trajectory of your company, and (of course) its general performance relative to its peers.

Those factors are listed in order of weight by which they are likely to dominate the final number.

For example, the example numbers you provide are likely only possible (in today's economy) for a highly profitable and growing technology company, and not for the vast majority of other companies.

If I were to throw in some random numbers of how much each factor would contribute to

Keep reading

This largely depends on the general state of the economy, the general trend of your industry, the general trajectory of your company, and (of course) its general performance relative to its peers.

Those factors are listed in order of weight by which they are likely to dominate the final number.

For example, the example numbers you provide are likely only possible (in today's economy) for a highly profitable and growing technology company, and not for the vast majority of other companies.

If I were to throw in some random numbers of how much each factor would contribute in terms of annual increase:

  • A strong economy could contribute up to 4-5%, a declining one could result in -10% (or lose your job)
  • A growing industry could contribute up to 10%, one in decline could result in -10% (or lose your job)
  • A fast growing company could go as low as maybe 10%, a dying one could result in -50% (or lose your job)
  • A good personal performance could contribute up to 10%, a very low performance could result in the loss of your job (generally, you will not be charged for poor performance)


This is based on my anecdotal evidence of having managed compensation increases for teams of people in a couple of different sized companies through different levels of national economic prosperity and different levels of profitability. Someone with better stats could probably do better.

Other Guides:


GET SPECIAL OFFER FROM OUR PARTNER.