As 2025 unfolds, the conversation around employee compensation continues
to dominate the corporate landscape. Target, one of the largest retail
giants in the U.S., is no exception. With competitors like Walmart
making headlines for their pay raises, many are wondering: Is Target raising their pay in 2025?
This blog post dives deep into Target’s pay raise strategies, compares
them to industry trends, and explores how the company plans to stay
competitive in a tightening labor market.
Although Target’s long‐standing starting wage scale still ranges from $15 to $24 per hour based on job type and market conditions, analysts now expect an average increase of about 3–4% in 2025. That means that if you’re currently earning near the lower end of the range, you could see a noticeable bump in your hourly rate—and in some high-demand markets, the raise could be even more substantial.
What Do the Numbers Say?
Recent salary budget analyses and market surveys across the U.S. forecast an average pay increase of roughly 3.8% for 2025. For Target employees, here’s what that could mean:
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For a team member earning $15.50 per hour (a common starting wage in many lower-cost regions):
A 3.8% raise would add roughly $0.59, boosting the wage to about $16.09 per hour.
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In higher-cost markets (where wages might already be set at $16.00–$17.00 per hour):
In these competitive areas, targeted raises for experienced workers could be larger—sometimes reaching an increase of $1.50 or even $2.00 per hour. For example, a team member earning $16.50 might see their wage jump to around $18.00 per hour.
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Specialized roles and warehouse operations in highly competitive labor markets may even see wages approaching the upper end of Target’s scale (up to $24 per hour).
These estimates align with broader industry trends, as many U.S. companies are adjusting their wage budgets by an average of 3.7–3.8% to keep pace with inflation and to address tight labor markets. (
Graphical Overview
Figure 1. Expected Percentage Increase vs. Current Hourly Wage
This simple line graph shows how a 3–4% increase translates across different starting wages:
Current Wage ($) Expected Increase (approx. 3.8%) Projected Wage ($)
15.00 ----------------------> ~15.57
15.50 ----------------------> ~16.09
16.00 ----------------------> ~16.61
16.50 ----------------------> ~17.12
17.00 ----------------------> ~17.64
Figure 1: For example, a worker earning $15.50 per hour would see their wage increase by roughly $0.59 (3.8%), bringing it to around $16.09 per hour.
Figure 2. Projected Hourly Wage by Market
Table to illustrate the regional differences:
| Market Category |
Current Wage |
Projected Wage |
| Low-Cost Markets |
$15.00 per hour |
$15.50 per hour |
| Mid-Cost Markets |
$16.00 per hour |
$16.50 per hour |
| High-Cost Markets |
$17.00 per hour |
$18.00 per hour |
| Competitive Warehouse Roles |
$21.00 per hour |
$23.00 per hour |
Figure 2: Target’s wage increases are expected to vary by local market conditions, with higher increases in competitive, high-cost areas and for specialized roles.
How Does This Compare to the Competition?
While Walmart has been making headline-grabbing moves—raising managerial salaries by as much as 23% in some cases—the average pay increase for hourly employees across the retail sector remains modest. This means that Target’s expected 3–4% raise aligns well with broader industry trends:
- Walmart’s Strategy: Focused on significant increases for managerial roles, with hourly wages receiving smaller, targeted bumps. Walmart pay raise 2025 Explained.
- Target’s Approach: A balanced strategy that not only increases base pay for frontline employees but also maintains a comprehensive benefits package, ensuring overall competitive compensation.
By offering a modest base raise (around 3–4%), Target can continue to be a wage leader without overextending its payroll budget—a strategy that may include larger, targeted increases for experienced team members and roles in high-cost areas.
What This Means for You
If you work at Target as a frontline team member, here’s what you might expect in 2025:
-
For those at the lower end of the pay scale:
A modest increase could push your hourly rate from, say, $15.50 to about $16.10, which, while incremental, helps maintain your purchasing power amid rising living costs.
-
For employees in high-demand regions:
You might see larger adjustments—potentially up to $1.50–$2.00 extra per hour—raising wages in competitive markets to $17–$18 per hour.
-
For specialized roles:
Some positions, especially in warehouse operations or in areas with acute labor shortages, could approach the upper limit of Target’s wage scale, reaching closer to $23–$24 per hour.
This expected raise not only reflects the broader economic trend but also demonstrates Target’s commitment to keeping its compensation competitive and aligned with local market conditions.
Final Thoughts
With a projected average increase of about 3–4%, Target’s 2025 pay raise could bring tangible changes to your hourly earnings—whether you’re just starting out or have been with the company for years. While the exact figures will vary by location and role, the overall trend points toward improved pay that will help counteract inflation and enhance employee retention. Keep an eye out for official announcements from Target, and check your Workday or payroll portal as the new year approaches to see how these changes will affect your specific wage rate.
Stay tuned for further updates as Target finalizes its 2025 compensation strategy.
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