Pay is still rising, but the latest government report shows why many workers do not feel much richer. Total compensation for civilian workers rose 3.4% over the year ending June 2026.
Wages and salaries rose 3.2%, while benefit costs rose 3.8%. For private-industry workers, inflation-adjusted wages and salaries were 0.4% lower than a year earlier.
What changed during the spring
- Total compensation: up 0.9% from March to June.
- Wages and salaries: up 0.9% during the quarter.
- Benefit costs: up 1.0% during the quarter.
What this means for a raise
A raise should be compared with both inflation and changes in benefits. A higher health-insurance contribution or weaker retirement match can offset part of a pay increase even when the salary number looks better.
Check your own number
The Real Raise calculator adjusts a pay increase for inflation. Use Offer Against Offer when benefits or working hours are changing too.
Source: U.S. Bureau of Labor Statistics - Employment Cost Index, June 2026. Released July 2026; checked August 2, 2026. Initial economic estimates can be revised.