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Exempt Employee Merit Increase

I am new to this sub but I figured this might be a good group to ask a couple question regarding merit increases. BACKGROUND: I am a salaried (exempt) employee and recieve yearly merit increases. This typically happens in March every year. I also have a mid (August timeframe) and end of year (December/January) performance review. At the conclusion of the performance review, I recieve a writeup from my supervisor on my job well done and recieve a rating (like a 1-5 rating). My question is what determines a merit increase? Is it solely based on performance? Does it factor in cost of living and/or CPI? I also have a follow up question that I think is better explained with an example: I have read online that a 3-5% merit increase is considered a “good” merit increase. Lets say John Doe makes 100k a year. If I utilize just a…


I am new to this sub but I figured this might be a good group to ask a couple question regarding merit increases.

BACKGROUND: I am a salaried (exempt) employee and recieve yearly merit increases. This typically happens in March every year. I also have a mid (August timeframe) and end of year (December/January) performance review. At the conclusion of the performance review, I recieve a writeup from my supervisor on my job well done and recieve a rating (like a 1-5 rating).

My question is what determines a merit increase? Is it solely based on performance? Does it factor in cost of living and/or CPI?

I also have a follow up question that I think is better explained with an example:

I have read online that a 3-5% merit increase is considered a “good” merit increase. Lets say John Doe makes 100k a year. If I utilize just a CPI inflation calculator (https://data.bls.gov/cgi-bin/cpicalc.pl) and enter $100k in March 2022 is what in November 2023. It is roughly 103.5k. That is a 3.5% increase. Meaning John Doe would need 3.5% increase just have the same purchasing power as he did in March. If John Doe got a 3% merit increase (“good” lol), his money would be worth less. Is this a fair assesment? Would that be a fair argument to a supervisor?

Looking for both employee amd supervisor input, if available.

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