Here's the Salary Increase Career Experts Say Makes Changing Jobs Worth It
Changing jobs can be one of the most effective ways to boost your income, but many people may want a more concrete way to know if leaving a stable job is worthwhile. There isn’t one magic percentage, according to career experts. And in today’s labor market, job changers aren’t necessarily commanding the double-digit raises they once did.
Here’s how to determine whether a new salary is enough to justify making the move.
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1. Don’t Assume a 5% Raise Is Enough
Most people assume a 5% raise is enough to make a job worthwhile, though even that number isn't average. According to ADP’s September 2026 Pay Insights report, the median year-over-year base-pay growth was 4.8% for job changers compared with 3.0% for job stayers. It's enough to coverage recent inflation spikes but it's not really enough to make significant quality of life changes.
For example, someone earning $72,000 who receives a 5% increase would make $75,600 — just $3,600 more annually before taxes. A 10% increase would bring the salary to $79,200, while a 15% increase would raise it to $82,800.
Diana Bernal, a career and executive coach at Diana Inc, said that the question of whether to switch jobs “depends” on “your financial goals and needs, personal aspirations, and changing family dynamics all have an impact on your decision and can change as life goes on.”
The calculation can be also different depending on where you are in your career. “In nonprofit or for lower-paid employees, moving for a pay bump can be the only way to boost your salary until you get established.”
2. Calculate Total Compensation, Not Just Salary
It’s more important to look beyond salary to the entire compensation package, according to Xintian Wang, a certified public accountant (CPA) and senior tax manager at Alexander Accountants, CPAs.
Wang said that a significant percentage of a job offer is typically made up of things other than just straight salary. “Stock options, bonuses, healthcare, 401(k) match, ESOPs, vacation time, flex spending accounts, cell phone reimbursement, car allowance and many others all dramatically impact deals,” she said.
In fact, data from the Bureau of Labor Statistics as of June 2026, showed that wages and salaries accounted for 70% of private-industry employer compensation costs while benefits accounted for the remaining 30%.
Bernal reminded workers that “retirement matches are free money,” so if a new employer is offering a similar or small salary bump but has a retirement matching plan, it’s a better deal.
3. Subtract the Costs That Come With the New Job
It’s important to also calculate what changing jobs will cost you. A higher salary or annual bonuses can quickly shrink if the new position requires a longer commute, more expensive health insurance, additional childcare, parking, professional clothing or more days in the office, Wang said. Plus, taxes can take a bigger bite of your paycheck if you bump up a tax bracket.
4. Decide What Flexibility and Time Are Worth to You
Not everything translates neatly into dollars. Bernal said “qualitative” reasons for changing jobs can include, “a commute, toxic work environment [and] not getting promoted. Even boredom.”
Each person must assess their goals and needs beyond income. For example, Bernal shared, “I took a pay cut to get much closer to home. I gained back two hours a week and increased vacation and paid holidays.”
5. Set Your Minimum Number Before You Get an Offer
Before interviewing or negotiating, calculate the minimum salary that would leave you meaningfully better off. Consider a simple formula for determining the right salary increase:
Take your new salary + bonus + employer retirement contributions + other valuable benefits
Subtract: Lost benefits + additional health costs + commuting/parking + childcare + other new work expenses
You get: Your real financial gain from switching jobs
Bernal stressed, “It’s essential to do your pros and cons list early in the process so you are inadvertently swayed.”
The salary increase that makes changing jobs worthwhile isn’t necessarily 5%, 10% or 20%. It’s the increase that leaves you better off after accounting for everything you’re gaining and giving up.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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