Alaska Salary Schedule 2025: Average Pay Hits $68,000 — Are You Getting Enough?

As 2025 begins, Alaska has announced that the average annual salary for workers in the state has climbed to $68,000. On the surface, this is positive news—it suggests that the state government is serious about improving income levels and standard of living for its people. But as many residents have asked: Does everyone actually earn this much? And does it match the high cost of living in Alaska?

Let’s explore what the number means, who is benefiting most, and whether it covers people’s real needs.

The Unique Challenges of Living in Alaska

Alaska is unlike any other U.S. state. With its harsh weather, remote towns, and limited roads, daily life here comes with unique challenges. Many goods—like groceries, heating oil, and medicine—are shipped by air or sea, making them two to three times more expensive than in the Lower 48 states.

Because of that, wage levels aren’t just numbers—they determine whether people can afford basics like rent, fuel, and food. That’s why this new salary benchmark is more than just economics—it’s about survival and retention of crucial workers in health, education, and public service.

Which Jobs Saw the Biggest Pay Rises?

The sectors receiving the largest increases include:

• Healthcare: Doctors, nurses, and health assistants in rural areas earned 8–12% raises. This helps keep vital medical workers in hard-to-staff regions.
• Education: Teachers, especially those in STEM subjects and special education, gained bonuses and allowances amid rising demand.
• Public Safety: Police, firefighters, and first responders received additional pay recognizing the risks of their jobs.
• Technical and Administrative Roles: Government analysts, IT professionals, and admin staff also saw increases to match market demand.

These targeted increases aim to retain talent and fill critical roles where the state faces long-standing shortages.

So Does Everyone in Alaska Make $68,000?

Not really. That figure represents an average—a simple statistical middle point. In reality, some people make well over $100,000 (like senior officials and data scientists), while others earn much less—such as administrative assistants or retail and transportation workers making below $40,000.

So if you earn $50,000 or less, you’re doing fine—but that doesn’t automatically mean you’re on par with the state average. Salaries vary widely based on the nature of the job, experience, region, and sector.

Balancing Income with Alaska’s High Costs

A $68,000 income sounds generous until you factor in real expenses like:

• Heating and snow removal, which add up quickly in winter
• Air-freighted groceries and household items
• Limited housing options, often at premium rates
• Childcare and education in remote areas
• Transportation costs, especially for rural workers

To help workers keep pace, the state includes Cost‑of‑Living Adjustments (COLA). These are extra allowances for employees in distant towns or areas with steep prices. Still, many labor groups argue that even with COLA, single parents or people supporting large families often fall short.

How Alaska Calculates its Salary Schedule

Creating the state’s salary schedule involves:

1. Review by finance officials, budget analysts and department heads
2. Consultation with unions and HR to negotiate fair increases
3. Use of inflation metrics and historical pay data to set guidelines
4. Performance-based pay—meaning higher raises for higher performing employees
5. Increased base pay for entry-level roles in high-demand sectors like IT, environmental science, health tech, and education

This process gives workers a chance to earn more through merit, and ensures starting salaries are competitive enough to attract fresh talent.

What Should You Do If Your Pay Feels Too Low?

If you feel underpaid compared to the average or others in your field, here are steps you can take:

• Participate in your agency’s annual review or evaluation process
• Gather data on how much other employees with similar roles, experience, or qualifications are paid
• Use public sources such as state job portals and union reports to benchmark
• Ask HR or your union for pay comparisons or potential appeal pathways

Taking these steps helps you understand whether your income fits your job, and gives you tools to advocate for a raise if needed.

Conclusion

That $68,000 average for 2025 is a step in the right direction—it shows Alaska is investing in its workforce. But it only means something if salaries are fairly distributed based on role, region, and performance. For salary to truly improve quality of life, it must reflect real everyday costs—not just economic benchmarks.

Whether you currently work in Alaska or plan to move there, it’s important to know:

• What’s the market rate for your role?
• Does your pay account for remote or rural living?
• How does your experience and qualification level affect expected salary?

Information is power. The more you know about salary norms and how they’re calculated, the better you can plan, negotiate, or prepare for your next move—financially and professionally. Your work building blocks should help build your stability, not strain it. And Alaska seems to recognize that—now it’s up to individuals to engage with the system.

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