If your 2026 pay raise feels suspiciously … err, spread out, you might be getting a ‘peanut butter pay raise.’ No, your boss hasn’t suddenly taken up baking, and no, this doesn’t mean they see you as the peanut butter to their jelly. It’s just HR’s way of saying, “Everyone gets something, whether you deserve it or not.” Instead of the merit-based pay increases that many companies follow (that is, the ones that bother to still give out raises), these raises are evenly spread throughout the staff, and they’re rising in popularity.
Why Peanut Butter-Style?
According to compensation analysts at Payscale, 44% of companies are planning to hand out identical raises across the board this year. That means top performers and the rest of us mere mortals are getting the same bump. (If you’re a top performer who breathes your job, and your company is giving you and your habitually late, eats-at-their-desk-all-day coworker the same pay increase, our thoughts are with you during this difficult time.)
So, why are employers turning to this format? Turns out merit-based raises can be messy. Managers fret about favoritism and bias. Admin teams groan at the paperwork. And there sits the peanut butter method: Slick, simple, and spreads the budget without anyone arguing.
Raise averages will hover around 3.5% in 2026, unchanged from last year. And yes, merit-based raises still exist — 48% of companies say they’ll still reward performance. But if your paycheck lands in the peanut butter zone, it’ll be a flat spread.
The Catch for Go-Getters
If you’re someone who thrives on extra effort, prepare for a tiny dose of disappointment. Ruth Thomas, chief compensation strategist at Payscale, warns that top performers might feel “disadvantaged in that environment.” No kidding!
Still, some companies have bonuses, promotions, or perks tucked away for their stars. But if we’re going PB-style for flat pay, everyone gets a scoop, whether you earned it or just survived the week.
Some Industries Actually Pay More
If you’re in a hot industry that can’t find warm bodies fast enough, you might dodge the peanut butter fate. Payscale reports above-average raises in:
- Construction (5%)
- Agencies/consultancies (4.5%)
- Technology (4%)
Interestingly, younger workers (hi, Gen Z) are flocking to jobs less likely to be automated — carpentry, plumbing, electrical work — meaning some of these “non-digital” roles are suddenly trending again.
Why You Should Care
Peanut butter raises may be boring, but they’re also a hint about where your company’s budget priorities lie. If you’re getting one, it’s not personal; it’s just easier for them (also, some raise is better than no raise). And hey, at least you won’t have to awkwardly plead your case for a raise in a meeting that could’ve been an email.
On the other hand, if you’re a high performer, this could be the year to negotiate outside the base pay — bonuses, extra vacation, or flexible schedules. After all, PB is great on toast, but not as satisfying when it’s all you’re getting in your paycheck.
More From Cheapism
- No Raise, No Problem: ‘Gave Myself a Raise by Doing Less Work’ — For many employees, doing less work is a direct response to stagnant pay, rising living costs, and executives taking home bonuses while frontline workers see nothing.
- 17 Jobs AI Still Can’t Touch (No Matter How Hard It Tries) — Here are some of the career paths that are the least likely to be replaced by automation or artificial intelligence technology.
- ‘Everybody Is Broke’: Why a $50 Car Rental Deposit Feels Like a Breaking Point for the Middle Class — The American middle class is clearly struggling, and a Reddit thread about car rental deposits proves it.
