Doesn’t the merit salary increase seem quite low?

Merit salary increases can appear low for several reasons. One of the primary factors can be budget constraints within the organization. Companies often allocate a fixed percentage of their overall budget to salary increases, which can limit the amount available for individual merit increases. Additionally, economic conditions, inflation rates, and company performance can influence how much is available for merit raises. It’s also possible that the criteria for earning a merit increase are stringent, reducing the number of employees who receive significant raises. To gain clarity on the specific reasons for a seemingly low increase in your situation, it may be beneficial to discuss with your HR department or a direct manager to understand the company’s compensation strategy and how merit increases are determined.