MLB Average Salary Growth Slows to 1.4% Amid Record Earnings

URGENT UPDATE: Major League Baseball’s average salary growth has sharply declined to just 1.4% for the year 2025, even as it reaches a record high of $4,721,393, according to final figures released by the players’ association. This latest data marks the smallest increase since a four-year decline that preceded 2022.

The figures reveal that the average salary rose by 2.9% in 2024, following significant increases of 7.2% in 2023 and 14.8% in 2022, which came after a 99-day lockout that resulted in a five-year collective bargaining agreement. The current labor agreement is set to expire on December 1, 2025, leading to concerns of a possible new lockout.

The players’ association reports these averages are based on the salaries, earned bonuses, and prorated shares of signing bonuses for 1,046 players on active rosters and injured lists as of August 31. It is important to note that MLB’s own figures may slightly differ due to different calculation methodologies.

In previous years, the average salary had dropped to $3.68 million in 2021 following the pandemic-shortened season. However, the average has surged 28.3% over the first four seasons of the current labor agreement, averaging a robust 7.1% annual increase.

For players with less than one year of major league service, the average salary stands at $822,589. Those with one to two years average $1,179,192, while players eligible for salary arbitration with two to three years of service make an average of $1,833,386. In contrast, players not eligible for arbitration in that same time frame average $1,374,760.

Among the arbitration-eligible players, the averages climb significantly. Those with over three years of service average $3,273,039, while four-plus year players average $3,932,847. The six-to-seven-year players see an average of $9,649,380, and the highest earners—those with 11 to 12 years of experience—peak at $22,034,231.

As fans and analysts alike monitor these developments, the looming expiration of the current labor agreement raises questions about future negotiations and salary structures in the league. The urgency of this situation cannot be understated, as the implications of potential labor disputes could reshape the landscape of MLB salaries moving forward.

Stay tuned for further updates as this story develops.