{
  "id": 129906,
  "title": "\"Peanut butter\" pay raises are out, as employers shift to merit hikes",
  "url": "https://urgent.news/2026/08/04/peanut-butter-pay-raises-are-out-as-employers-shift-to-merit-hikes",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-04T13:00:11.000Z",
  "source": {
    "name": "CBS News",
    "slug": "cbs-news",
    "url": "https://www.cbsnews.com/news/peanut-butter-pay-raises-merit-based-pay-2027/"
  },
  "original_language": "en",
  "account": "Recent data from Payscale reveals a shift in corporate compensation strategies, with employers moving away from uniform \"peanut butter\"-style pay raises toward merit-based increases for top performers. This change, noted by Ruth Thomas, Payscale's chief compensation strategist, reflects a broader trend of businesses allocating pay budgets more strategically to drive business transformation. In 2027, employers plan to grant a base pay increase of 3.5%, a slight increase from the 3.4% expected this year. However, this modest rise may not significantly outpace inflation, which is projected to remain around 3.5% annually through 2027. Despite the overall flatness in compensation hikes, certain industries are slated for larger or smaller pay increases. Aerospace and defense companies anticipate a 4.5% boost, while pharmaceutical firms are preparing for a 4% raise. Conversely, sectors like retail, healthcare, and government are expected to see smaller increases, all in the 3% range.",
  "summary": "Here's what employees can expect for a raise in 2027 as companies move away from broad-based pay increases.",
  "key_points": [
    "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%"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}