One of the best ways to attract top talent is with competitive salaries.
Gallup research finds that excellent compensation is a primary concern for job seekers. So, employers must offer fair, competitive salaries to pique candidate interest.
When deciding what to offer, your company’s budget, the person’s experience, and industry-specific salary benchmarks all come into play. If you’re hiring in the US, you’ll need to know what employees usually earn based on factors like their skill level and geographical area.
Here’s a look at the average US salary in 2025 and what factors currently influence it. Find out how to use this data to make competitive salary offers that meet—or exceed—employee expectations.
Average American income: An overview
First things first: How much does the average American make?
The Bureau of Labor Statistics (BLS) estimates the median salary in the US at $1,196 per week, which translates to $62,192 annually. And according to the Social Security Administration, the average weekly salary in the US is roughly $1,343.20, which works out to an average of $69,846.57 annually.
It’s important to keep in mind that medians and averages are calculation methods—not necessarily representations of what most Americans earn. An average sums up all individual salaries across the nation—including extremely high and low ones—and divides this total by the number of people considered in the calculation. And a median represents the center point on the salary scale, but it doesn’t speak to how many people really earn in that middle range.
When determining compensation, it's important to look past national medians and averages and instead consider information specific to factors, such as roles, geographical areas, and experience levels.
Median income in the US by age
According to data from the BLS, Americans earn more as they progress through their careers. As people gain experience and improve skills, they transition into higher-level positions with better salaries. Then, income tapers off as workers approach retirement age at around 55. Studies show this drop-off is due to factors like age discrimination and lack of bargaining power among older workers.
The following table represents the latest BLS median salary data, demonstrating how income peaks at the height of a person’s career, before they enter the pre-retirement phase:
While it’s important to familiarize yourself with data on the median or average salary by age, it shouldn’t be your benchmark when setting salaries. Paying members of the workforce based on their age is a discriminatory practice, and companies should instead offer salaries that align well with a person’s experience and skills.
Average salary in the US by education
In the US, people tend to earn more when they have higher levels of education. Statistics from the BLS show that those with a college degree (bachelor's or above) earn more than their counterparts who completed high school or earlier forms of education. Master’s degree holders earn more than those with a bachelor’s, but people with a doctorate earn, on average, slightly less than those with other advanced professional degrees.
The following table shows BLS estimates for the current median earnings for different educational levels:
While degrees imply a certain amount of know-how, other factors contribute to a person’s education level. On-the-job experience or non-degree-level training—like tech bootcamps—also prepare professionals well. Employers should consider a person’s level of education alongside practical experience and suitability for a role. Recent CNN reporting shows that an increasing number of employers are willing to hire workers without a college degree.
Average salary in the US by experience level
Work experience helps people perform their jobs better and gain access to higher-paying roles. Data on US wages by experience level trends upward as people progress in their careers. The following table shows annual salary estimates for different experience levels, compiling data from Glassdoor and ZipRecruiter.
Experience is capital that an employee offers your organization—a resource that’s taken them time and effort to gain. Show hires that you understand the worth of their hard-earned knowledge by offering compensation commensurate with their experience.
Average salary in the US by state
Cost of living ranges by geographical area. People working in US states with a higher average cost of living pay steeper costs for necessities like housing and food than those living in the country’s most affordable areas.
Consider whether your organization's salaries are competitive in the states where potential employees or remote contractors live. Use the following BLS average salary data for some of the country’s most populous states as a guide:
Ensure fair pay with Oyster’s global salary benchmarking tools
Offering fair compensation shows employees you care. Researching what people generally earn in certain areas or experience levels is a smart first step to equitably projecting incomes.
Level up your benchmarking process with Oyster’s salary insights tool, which allows you to access market-specific salary data—not just in the US but in over 130 countries. With this information, you’ll be able to offer fair, competitive compensation packages wherever you hire.
Need more support with hiring best practices? Use Oyster’s employer of record (EOR) services, and compliantly hire and pay employees and contractors around the globe.
FAQ
What US salary is considered middle class?
The definition of middle class ranges from state to state, thanks to different costs of living across the nation. The middle class also has low and high extremes, meaning that people earning vastly distinct incomes—even in the same state—form part of the middle class.
According to household salary reporting from MSNBC, annual lower middle class incomes in affordable states are in the $40,000 range, while upper middle class incomes in those same areas are generally around $120,000 to $140,000. Lower middle class incomes in expensive states are roughly $60,000, and upper middle class ones hover at or above $180,000. Keep in mind that these are annual household—not individual—incomes and may include data from more than one earner.
What does pay transparency mean in the US?
Certain US states have pay transparency laws, meaning employers must disclose salary information to employees and candidates. In those areas, if someone asks about the salary for a job you’ve posted online, you must respond.
What is a good salary in the US?
A good salary in the US depends on factors like a person’s cost of living and earning potential. For example, an entry-level employee receiving Michigan’s average salary of about $63,000 annually earns well with respect to their experience. But this salary won’t stretch as far in California, which has a higher average cost of living.
Great compensation extends beyond an attractive salary. Workers also need access to wellness-driving benefits like paid time off (PTO), health insurance, and maternity leave. The law requires some of these benefits, meaning you must include them in your compensation by law.
What are the five wealth classes in the US?
Households are often divided into broad wealth classes to better understand income distribution, financial security, and access to resources. The five American wealth classes are:
- Bottom 25%
- Lower middle class
- Upper middle class
- Upper class
- Wealth class (roughly the top 10%)
About Oyster
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