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Salary Development Forecast 2027
2027 salary review cycle: How much room for manoeuvre does HR have?
The 2027 salary review cycle is taking place against a changing backdrop: salary increases are becoming more moderate, the labour market is easing and companies are deploying their available budgets more selectively.
Based on data from 1,039 companies, the Kienbaum Salary Development Forecast 2027 shows how companies are planning their salary review cycle, which factors influence their decisions and how salaries are expected to develop across 41 countries.
Some initial findings:
- Companies in Germany expect average salary increases of 2.6% in 2027
- 48% plan to focus salary increases specifically on high performers and key positions
- Only 25% still cite the shortage of skilled workers as a driver of salary development, compared with 52% in 2025
- 59% see investment in AI as a way to fund rising salary costs, compared with 43% the previous year
But what do these developments mean for your salary review cycle?
The full forecast covers, among other things:
- how salaries are developing in Germany, Austria, Switzerland and other international markets
- which factors are actually driving salary development in 2027
- how companies are managing limited budgets and where they are investing selectively
- how companies are funding rising personnel costs
- how the labour market and candidates’ salary expectations are changing
- the role AI, pay for performance and equal pay play in compensation planning
Use these findings to inform your salary and budget planning for 2027, and download the Kienbaum Salary Development Forecast 2027 free of charge.
Projected salary development for 2027 across 41 countries, covering top management positions through to specialists and skilled professionals.
- Data basis:
- 1,000+ participants from companies of different sizes and across various industries
- Differentiated by:
- Top, Senior, Middle and Lower Management, as well as specialists & skilled professionals
- Content
- Background and data basis
- Projected salary development (nominal and in real terms)
- Salary development in EU and non-EU countries
- Deep dive into the DACH region
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