How So-Called Peanut Butter Raises Could Affect Your Paycheck in 2026

Core Insights - Companies are increasingly considering "peanut butter raises," which are uniform wage increases across the organization, rather than merit-based raises for 2026 [1][7] - A significant portion of organizations, 44%, are planning or considering this approach to salary increases [1][7] Pay Strategies - Understanding employer pay strategies is crucial for employees to set realistic career expectations [2] - In 2025, Starbucks implemented peanut butter raises, providing a 2% increase to North American corporate employees instead of merit-based raises [2] Merit-Based Raises - Despite the trend towards peanut butter raises, nearly half (48%) of organizations still plan to increase pay based on performance [4] - The median base pay raise is expected to remain at 3.5% in 2026, consistent with the previous year [4] Job Switching and Salary Growth - Job switchers experienced a median wage growth of 4.1% as of December 2025, only slightly higher than those who remained in their roles [5] - Smaller companies (1 to 99 employees) are planning average raises of 4%, while larger organizations (5,000 to 9,999 employees) plan to give 3% raises [6] Industry-Specific Trends - Industries such as construction and technology are offering larger raises, with increases of 5% and 4% respectively, due to the demand for specialized skills [7]