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"Peanut butter" pay raises are out, as employers shift to merit hikes

Here's what employees can expect for a raise in 2027 as companies move away from broad-based pay increases.

  • Employers shifting from uniform "peanut butter" raises to merit-based increases
  • Base pay increase expected at 3.5% in 2027, slight rise from 3.4%
  • Aerospace and defense, pharmaceuticals to see larger pay boosts at 4.5% and 4%

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