Get ready for bigger paychecks: Many employers plan to increase salary budgets

(CNN) – Many American workers can expect to receive substantial pay raises in 2023.

With the new year around the corner, employers say they are planning to increase their salary budgets by 4.6%.

That is the highest expected annual increase in 15 years, according to consulting firm Willis Towers Watson.

The higher compensation is attributed to the rising cost of living and the tight labor market.

With inflation still at 7.7%, workers will still see their buying power diminish.

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