
Some employers are planning smaller salary increases for their workers in 2025, according to the results of a new survey by ASE in Troy.
Although most organizations plan increases similar to those in 2024, a “notable portion” are considering smaller adjustments, and many remain undecided about their strategy, according to ASE.
Among organizations that have finalized their 2025 budgets, 63 percent plan adjustments comparable to their budgeted or actual increases in 2024, while 28 percent expect lower increases, according to new data conducted as a follow-up to ASE’s 2024 Salary Budget Survey.
Additionally, slightly more than 70 percent of respondents have yet to finalize their 2025 salary increase budgets.
The findings reflect a measured and cautious approach by employers as they navigate an evolving economic landscape, demonstrating an even greater sense of prudence compared to data collected last year, ASE says.
“While salary increases are still on the table for 2025, employers are taking a more cautious approach, with the majority planning adjustments similar to 2024, and some even reducing their initially projected increases,” says Mary E. Corrado, president and CEO of ASE. “This reflects a dynamic economic landscape where maintaining a steady course is prioritized over aggressive compensation changes.”
Highlights of the ASE Salary Budget Pulse Survey include actual total base pay increases for 2024 were:
- 8 percent (non-exempt, hourly, nonunion)
- 5 percent (non-exempt, salaried)
- 8 percent (exempt, salaried)
- 2 percent (officers/executives)
The average projected total base pay increases for 2025 are:
- 4 percent (non-exempt, hourly, nonunion)
- 4 percent (non-exempt, salaried)
- 5 percent (exempt, salaried)
- 6 percent (officers/executives)
More than 170 organizations based in Michigan participated in the survey. Organizations with 1-100 employees made up nearly 49 percent of the survey sample, while organizations with between 101-499 employees represented approximately 34 percent of the sample. The remaining 17 percent of the sample came from organizations with 500 or more employees.
A variety of industries were represented in the survey, with durable goods manufacturing (48.6 percent) leading the way. Trades and services (17.7 percent) was the second-largest industry representation.
For more information about the ASE, visit aseonline.org.