In 2025, determining what constitutes a “bad salary” depends on a variety of factors including location, industry, cost of living, and individual financial obligations. With rising inflation and shifting job market dynamics, understanding where your income stands relative to the national average is crucial for financial planning and career growth.
Average Salary in 2025
According to labor market projections and recent surveys, the average salary in the United States in 2025 is approximately $62,000 to $68,000 per year. Salaries vary significantly by state and industry, but this figure serves as a general benchmark.
Any full-time salary below $40,000 annually is often considered low, especially in metro areas where living expenses are high. For context:
$30,000–$40,000/year = Struggling to cover essential costs in most urban areas
$40,000–$50,000/year = Modest lifestyle, potential financial stress depending on location
Below $30,000/year = Typically considered a bad salary in 2025 for a full-time worker
Factors That Determine a “Bad” Salary
A salary is “bad” when it doesn’t adequately cover your cost of living, debt, or basic financial needs. Key contributing factors include:
1. Location
High-cost areas like New York, San Francisco, and Los Angeles require significantly higher incomes to maintain a basic standard of living.
In contrast, rural or low-cost areas might offer more financial breathing room on lower salaries.
2. Experience Level
Entry-level positions naturally pay less, but stagnation in wage growth over time is a concern.
Mid-career professionals (5–10 years) earning below $55,000 may be underpaid depending on their role and industry.
3. Industry Norms
Salaries differ vastly between sectors. For example:
| Industry | Average Salary (2025) |
|---|---|
| Technology | $90,000–$130,000 |
| Education | $50,000–$70,000 |
| Healthcare | $70,000–$110,000 |
| Retail/Hospitality | $30,000–$45,000 |
| Creative Professions | $40,000–$65,000 |
Real Salary Examples in 2025
Here are a few specific salary benchmarks to compare:
Peloton Instructor Salary: Often earns $80,000 to $120,000, with top earners exceeding this through endorsements.
SAP EDI Consultant Salary: Can range from $90,000 to $130,000, depending on certification and project scope.
Senior Lead Navigator (Auxano Salary): Typically falls between $60,000 to $85,000, depending on region and responsibilities.
Penetration Tester Salary: Cybersecurity roles such as this often bring in $95,000 to $140,000+ based on skill and certification level.
Take-home for $103K Salary: After taxes and deductions, expect a net of around $72,000–$78,000 annually depending on state tax laws and retirement contributions.
How Education and Certifications Impact Salary
Investing in education and professional development can significantly increase earning potential:
Degrees That Boost Salary:
STEM degrees (e.g., Computer Science, Engineering, Data Science)
Healthcare fields (e.g., Nursing, Pharmacy, Health Admin)
Finance and Business Administration
Valuable Certifications:
PMP (Project Management Professional)
AWS Certified Solutions Architect
Certified Information Systems Security Professional (CISSP)
Google UX Design Certificate
Licensed Nursing certifications (e.g., RN, NP)
Benefits, Job Outlook, and Market Trends
Benefits that Enhance Compensation:
Even if a salary is lower than average, strong benefits can add value:
Health and dental insurance
Retirement matching (e.g., 401(k))
Paid time off and parental leave
Remote work flexibility
Wellness programs
2025 Job Market Trends:
Remote work is still a strong option across tech, marketing, and design fields.
AI and automation are changing job requirements, increasing demand for tech-savvy professionals.
Skilled trades and healthcare support roles are growing rapidly due to aging populations and infrastructure needs.
Conclusion: Is Your Salary Competitive in 2025?
A “bad” salary is ultimately one that limits your financial stability and growth. While the average sits around $65,000, many variables—such as industry, education, and cost of living—can shift what qualifies as low income. If your earnings are below $40,000 and you’re struggling to save or cover basic costs, it may be time to reevaluate your career path, upskill, or negotiate for better pay.
Key Takeaways:
A bad salary in 2025 is generally below $40,000 for full-time workers.
Factors such as experience, industry, and education heavily influence earning potential.
Consider upskilling and certifications to enhance job prospects and increase pay.
Cost of living varies dramatically by region and impacts what’s considered fair compensation.
By staying informed and proactive, you can navigate the evolving job market with confidence and make strategic career moves that lead to better financial health.