Recently, BACABA surveyed its members regarding salary program increase activity for their organizations to date in 2026. Specifically, questions were asked regarding actual 2026 salary structure increases, total base salary increases, and salary increase budgets.
The following three questions were asked:
1. 2026 Salary Structure Increase: If you utilize salary structures in your organization and advanced it upward in 2026, indicate the percentage by which it was increased. Enter a whole number with one decimal place, with no % symbol (e.g., 3,0).
2. If you awarded base salary increases to your employees in the first half of 2026, what is the average (annualized) base salary increase percentage you provided to your employees? Include increases for all reasons (e.g., merit, internal equity, promotions; do not include lump-sum increases). If an employee was eligible for an increase but a decision was made to not give them an increase (essentially giving them a 0.0% increase), then enter "0.0" for that employee. Enter a whole number with one decimal place, with no % symbol (e.g., 3.5).
3. What is your base salary increase budget for all of 2026? Include all forms of base salary increases (e.g., merit, internal equity, promotions).
The survey was distributed to BACABA all members (11,000+) in mid-July of 2026; members were given two weeks to reply, with two reminders sent during the two-week window.
The response rate to the survey was exceptionally low, with only 16 members responding. Given the low participation rate, the results (below) should not be interpreted as a statistically valid representation of the increases provided by BACABA member organizations but rather a rough indicator of magnitude of 2026 increases.
Contextual data is provided alongside the BACABA survey data, including national summary data from Mercer's April 2026 Salary Planning Update report and the Federal Reserve Bank of Atlanta's Wage Growth Tracker (3-month overall unweighted, June 2026) three-month moving average of median wage growth.
Observations
Salary Structure Increase: The Bay Area's salary structure increases are somewhat higher (3.0% vs. 2.6%) than that provided within the Mercer report.
Base Salary Increases: The Bay Area's Base Salary Increases (3.4% to 3.7%) fall within the general range of average salary increases (3.4% to 3.6%) provided by other sources.
Base Salary Increase Budget: Salary Increase Budgets in the Bay Area are significantly higher than the average reported in the Mercer Report. Since Budgets are almost always higher than spend (particularly mid-year), we question why Mercer's spend vs. budget numbers (3.4%) are equal.
Note regarding our methodology
As is typical with common survey analysis practice, extreme positions ("outliers") were reviewed and removed, as were nonsensical data points (e.g., actual dollar salary increase budgets instead of percentages). Additionally, zero's were removed.
Finally, as per our agreement, all submissions were made anonymously.
Questions?
Send us an email at: president@bacaba.org