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  • 8 minutes ago
Employers are choosing to reward staff with “peanut butter raises," or general pay hikes spread out evenly throughout their companies.

Fortune's Emma Burleigh explains why bosses are ditching merit-based pay bumps in 2026.

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Transcript
00:00Your raise might look a little different this year.
00:02A peanut butter raise is a viral phenomenon right now, but it's actually no new trend.
00:08A peanut butter raise is a standard pay increase spread out to all employees across an organization.
00:15According to a new pay scale report, around 44% of employers plan to roll out peanut butter raises in 2026.
00:219% of companies already use peanut butter raises.
00:24About 16% of organizations are planning on using them this year, and another 18% are considering it.
00:31So if this trend continues, which with the current sort of like economic predictions, labor market predictions,
00:37we may end up in another cycle of like 3.53% pay budgets, then pay differentiation is absolutely going to be weak.
00:45And if you're wondering if peanut butter pay raises are going to impact you this year,
00:49some sectors like government, nonprofit, education have already been doing this for a while.
00:53In fact, even more government workers will be getting peanut butter pay raises in 2026.
00:58But if you're in construction, healthcare, or transportation, peanut butter raises might be coming to you this year.
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