Are you in line for a pay rise this year?

The average wage increase is shifting year on year, and not always in the direction that employees are hoping for. The short answer is, yes, you’re probably in line for a wage increase this year. The bad news is that, on average, it isn’t likely to be as much as you’d like.

Hays Salary Guide FY26/27 has found that despite cost-of-living rising, two in five (42%) of employees reported a decrease, no change or a marginal increase (less than 2.4%) in pay over the past year. This is leading to a growing sense of dissatisfaction when it comes to salary, with nearly a third of employees dissatisfied with their pay – but fortunately it’s not the end of the tunnel.

Hirers report an average salary increase of 3.3% in New Zealand and 4.0% in Australia, which is lower than expected but still can have an impact on overall take-home.

Will I receive a pay rise in my next review?

To see if your skills are in line for a salary increase this year, visit our online Salary Checker to view the highest, typical, and lowest salaries for your job.

How much should my salary increase each year in Australia?

Annual wage growth across the board in Australia averages out at three per cent, but what a reasonable pay rise looks like differs by industry. Some industries grow at a faster rate than others, with Australian employers also basing salary increases on other factors such as company policies, as well as your specific job role and performance. With employers looking to offer an average of 3 per cent, it is only just nudging ahead of inflation.

Experience of recent years drive up employee expectations

The last few years that have seen incredible change in how people work, their flexibility and adaptability, combined with skills shortages, has changed how employees feel when it comes to salary increasess.

Back in 2019, 67 per cent of employees expected a pay rise less than 3 per cent, that has now flipped to a point where in the Hays Salary Guide FY26/27 66 per cent expect a raise greater than 3 per cent.

Design the employee experience

To bridge the expectation divide, employers and professionals should look beyond just the numbers and consider the entire employee experience being offered.

While employers recognise the importance of a competitive remuneration offering, professionals are seeking more than just financial compensation. The benefits on offer, the company culture and the wider organisation’s values and purpose also drive decisions on who to work with and for.

Employers are prioritising benefits that help them build a skilled and capable workforce to improve productivity, customer satisfaction, and profits. For instance, a clear pathway for progression and professional development was a high-ranking benefit, closely following salary as a driving factor for mobility.

If all else fails, consider your options

Of the skilled professionals we surveyed, two thirds are currently looking or planning to look for a new job in the next 12 months.

For professionals with skills in demand, the time may be right to consider an external move to speed up your progression. If you are considering your options, we invite you to share or update your CV so we can bring opportunities to you directly.

Look for benefits beyond just salary

There are several benefits you can seek that are of tangible monetary value or allow you to save on personal costs.

Performance bonuses

Employers can offer performance-based bonuses that are tied to achieving specific goals, targets, or milestones. These bonuses can be an effective way to reward and motivate employees based on their individual or team performance.

Flexible working arrangements

Now seen as more of an expectation than a benefit, flexibility is taking on a new meaning. For some, this may mean even greater flexibility in working hours, or an increase in the days allotted for working remotely, which helps employees save on commuting costs, reduce stress, and achieve a better work-life balance – indirectly compensating for the impact of inflation.

Additional perks and benefits

Employers can enhance their employee benefit packages with non-monetary perks. These can include increased paid time off, improved healthcare coverage, gym memberships, wellness programs, childcare support, and educational assistance.

Download Hays Salary Guide FY26/27