Income & Career July 27, 2025 · 4 min read

How to Negotiate a Raise (Script Included)

Most people get a 3% annual raise. People who ask get 8-15%. Here is exactly how.

P
Penny Team
Personal Finance Team

Most people accept whatever raise their employer gives them, usually 2-4% per year. People who proactively negotiate raises get 5-15% on average. Over a career, that gap compounds into hundreds of thousands of dollars. The catch is that asking feels uncomfortable. Here's how to do it well, with the exact script.

Step 1: Build the case before you ask

Don't just walk in and ask. Walk in with evidence. Specifically:

Step 2: Pick the right timing

Timing matters more than people realize. The best times to ask:

The worst times to ask:

Step 3: Schedule the conversation

Don't try to slip it into another meeting. Email your boss:

"Hi [Boss], I'd like to schedule 30 minutes this week or next to discuss my role and compensation. Let me know what time works for you."

This signals that the conversation is important and prevents it from being squeezed into 5 rushed minutes.

Step 4: The actual script

Here's the script that works. Adapt to your situation:

"Thanks for making time. I want to talk about my role and compensation. I've been here [X years], and over the past year I've [accomplishment 1], [accomplishment 2], and [accomplishment 3]. I've also taken on [specific new responsibilities].

Based on my performance, my expanded scope, and what I'm seeing in the market for similar roles, typically in the [salary range], I'd like to discuss adjusting my salary to [specific number].

What are your thoughts?"

Then stop talking. The biggest mistake people make is rushing to fill the silence. Let the boss respond.

Step 5: Handle the response

If they say yes

Great. Get it in writing. Confirm the timeline (effective when, payable when). Thank them. Move on.

If they say "I need to think about it" or "I need to check with HR"

This is normal and not a no. Ask: "When can I expect to hear back?" Get a specific date. Follow up if they miss it.

If they say "the budget doesn't allow it right now"

Don't accept the no immediately. Ask: "I understand budgets can be tight. What would I need to do, and what timeline, to get to [number]? Can we revisit this in 6 months?"

This converts a no into a roadmap. Document what they say. Hit those targets. Come back when you've done them.

If they say "we can do [smaller number]"

Counter-offer: "I appreciate that. Could we meet at [number between their offer and your ask]?" Most negotiations end in the middle. Almost no one takes the first counter without negotiating up at least once.

If they offer non-cash benefits instead

Things like extra vacation days, remote work, professional development budget, title change, or stock options can be valuable. Calculate the dollar value and decide if it's a fair trade.

If they say no with no path forward

This is information. It tells you that your value isn't being recognized at this company and probably won't be in the future. Time to start exploring outside opportunities. See when to switch jobs.

Common mistakes

Apologizing

"I'm sorry to ask but..." weakens your position. You're not asking for a favor. You're requesting fair compensation for value you've delivered. No apology needed.

Citing personal needs

"I need more money because my rent went up." Bad. Your boss doesn't care about your rent. They care about your value. Make the case based on what you contribute, not what you need.

Threats

"Give me a raise or I'll quit." Almost always backfires. If you have an external offer, mention it as context, not as a threat. "I've received an offer from [company] for [amount]. I'd prefer to stay here but I need to consider it seriously." That's leverage. "Pay me or I'm gone" is an ultimatum.

Asking too small

If you ask for a 3% raise, you'll get a 3% raise (if anything). If you ask for 12%, you might get 8%. Ask high. Negotiation always shifts down.

Not following up

If they say "let me get back to you" and never do, follow up. Politely, in writing, with a specific request. Many "yes" outcomes get lost because the employee was too embarrassed to remind their boss.

The bigger picture

Your earning potential over 30 years is enormously affected by these conversations. A successful raise negotiation at age 25 doesn't just give you more money for one year, it raises your base for every subsequent raise, every job offer (which usually anchors on your current salary), and every future promotion. The compounding is real.

The discomfort of asking is real. The financial cost of not asking is much larger.

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