People's Experience with Pay Increases This Year

random12 on 17/07/2022 - 19:13

Wondering what everyone's experience with raises have been this year (given the context of low unemployment and 'great resignation').

Given that many companies do June Financial Year End.

Given inflation at 7 - 10%, anything less than this is essentially a pay cut.

Coming from many years of people begging to get 2 or 3% raise.

What will you do if your employer gives less than inflation raise.

A 7% raise just maintains purchasing power. It does not even take into account increased skills, responsibility or progression through the year.

The loyal people that stay at companies are always given the 'loyalty tax' in terms of reduced wages. Surely new starters have been offered more than existing employees?

I am going to be very disappointed if the company tries to do a less than inflation raise (and screw the shill Reserve Bank Chair Phillip Lowe that wants everyone to be happy with just 3% raises - effectively be happy to take a pay cut).

Education & Work

Comments

  • 87percent on 17/07/2022 - 19:17
    +22

    Only way to get a significant pay bump, is to job hop

    • random12 on 17/07/2022 - 19:19
      +3

      I expect that many employers will try to rip off their employees and give crap year raises in the coming months (given year end pay review cycle) and they may see even larger numbers of resignations lol. Forcing employees to churn to get the raise they deserve.

  • Hybroid on 17/07/2022 - 19:20
    +10

    We got 3-5% performance-based increase, then additional flat salary increase of 3% for all employees on top, then the additional 0.5% superannuation increase covered by company as well. Can't complain.

    • JoeBogan on 17/07/2022 - 19:41

      Why would you neg this comment ffs, anyway herr have my upvote.

      • Some Human on 17/07/2022 - 19:59
        +1

        I would guess it’s a jealousy neg.

    • netjock on 17/07/2022 - 20:25

      You should start commenting on this thread

      You're pretty much there assuming you're on the OzB standard salary plus almost a 10% increase.

    • HelpMeiCantSee on 18/07/2022 - 10:05

      Wow, that’s epic! Well done mate!
      We have been offered 2% and no more, all inclusive. It should be noted we have also had sognificant skills enhancement that would quite easily justify upwards of 25% (conservative estimate).

      We get totally screwed sadly!

  • brendanm on 17/07/2022 - 19:25
    +9

    Just wait for the immigration gates to open again, we won't have a jobseekers market for too long if government can help it.

    • random12 on 17/07/2022 - 19:26
      +15

      All the business fat cats on the news cant wait to open the borders.

      Because how dare regular people get more pay. It should all be higher bonuses for those at the very top!

      • brendanm on 17/07/2022 - 19:27
        +1

        "Its good for the country".

        • random12 on 17/07/2022 - 19:28
          +14

          Tell me how most regular people benefit from having a greater population?

          You ask everyone bar CEOs, and they will say that we don't need more people. The traffic is bad enough as it is.

          • brendanm on 17/07/2022 - 20:09
            +3

            @random12: I wasn't saying that, it's what they say. Hence the quotation marks.

    • netjock on 17/07/2022 - 20:33
      +1

      Migrants are going to get the shock of their lives with the cost of living here. Some people seem to believe migrants all come with suit cases full of money.

      For those interested ABC article

      • brendanm on 17/07/2022 - 21:40
        +2

        You would think people would research this before moving somewhere.

        • netjock on 18/07/2022 - 11:08

          You would think

          That is the point. A lot of people don't. Exactly how the banks take your money with a home loan, car loan and whatever else they can small cut by small cut. Death by a thousand cuts.

        • Ozbar Gain on 18/07/2022 - 12:06
          +1

          Emigrated here. COL is bad but lifestyle here sure beats the s***hole most immigrants come from

          • netjock on 18/07/2022 - 13:23

            @Ozbar Gain: You fail to understand immigrants.

            You can immigrate mostly if you are middle class or above (have a degree, professional job and on the list of skills in demand). If you are middle class in your home country and close to the poverty line here then here is the s***hole.

            If you are part of the refugee intake then sure life beats it. Only 17,875 places a year. Even get government benefits when you land.

            • Ozbar Gain on 18/07/2022 - 16:51

              @netjock: Middle class in Australia is not the same as "close to the poverty line".

              You're saying that if you are middle class in a different country and are skilled enough to immigrate to Aus, you're going to be living close to the poverty line here. Not true. You rightly said immigrants have to be skilled - they're not coming in working minimal wage.

              We have it good in Aus

              • netjock on 18/07/2022 - 22:04

                @Ozbar Gain:

                You're saying that if you are middle class in a different country and are skilled enough to immigrate to Aus, you're going to be living close to the poverty line here. Not true

                You should read that ABC article. People who are professionals with middle class incomes are finding it hard with COL.

    • Vote for Pedro on 17/07/2022 - 21:27
      +3

      Ah yes, capitalism at work. Let’s distort the market by bringing in workers to keep local wages low.

      • brendanm on 17/07/2022 - 21:39
        +10

        Yes, it's a beautiful thing. It's particularly amusing, as it's always said that "migration doesn't lower wages", yet here we are, after a period of no immigration, with employees in pole position for once.

  • SBOB on 17/07/2022 - 19:42
    -4

    anything less than this is essentially a pay cut.

    This line is getting old.

    I am going to be very disappointed if the company tries to do a less than inflation raise

    If your skills don't warrant a 10% raise and you're too lazy or unable to find a better offer elsewhere, prepare to be disappointed when you don't get a 7-10% raise

    • random12 on 17/07/2022 - 19:45
      +6

      Its not getting old. It is the truth.

      A raise that is less than inflation is a pay cut. There is no if, and or buts.

      You are paying me something that is worth less than before.

      • SBOB on 17/07/2022 - 19:48
        +4

        You are paying me something that is worth less than before

        Yep, and you know what happens when your currency is effectively worth less due to govt handing out huge amounts, 1 trillion dollar debt, combined with massive international supply chain and other influencing factors increasing the underlying cost of everything..

        If you think everyone is going to keep up with inflation, well….perhaps you should have paid more attention in economics class.

        Just because peeltheonion isnt around, doesn't mean you have to try and fill the void.

  • USER DC on 17/07/2022 - 19:44

    So far have gotten nothing, :(. Hopefully will find a good new of pay rise by comparing the pay rate, between payslips

    • SlartiBartFozz on 18/07/2022 - 20:15
      +2

      Same, despite asking every year our firm had given zero increases for many years. High time to move on, most of our office has already quit, and it's harder than ever to find new skilled staff, so it's going to hit very hard when the rest of us all leave.

  • SF3 on 17/07/2022 - 19:46
    +2

    This is why we the workers don’t get a pay raise, because the top of the pyramid takes it all. I.e. ASX100 $9m avg pa in FY2021.

    Afterpay's founders are Australia's highest-paid CEOs

    • random12 on 17/07/2022 - 19:47
      +2

      (1) Afterpay is not a groundbreaking idea.

      (2) Afterpay business model is a scam that relies on low interest rates.

      (3) Afterpay has lost so much value, so capitalism seems to be failing when they still get large pay.

      • SF3 on 17/07/2022 - 19:53
        +1

        so capitalism seems to be failing when they still get large pay.

        Unfortunately it is working, that’s the unfortunate side of it… they aren’t going to regulate themselves, the board of directors are all in it.

      • netjock on 17/07/2022 - 21:12
        +1

        Afterpay is not a new idea.

        But making like 8% over 2 months which works out to be 48% is great.

        Unfortunately they don't do credit checks and now finding out a lot of their users are bad credit. Lucky they sold themselves at the peak to block(heads).

  • onetwothreefour on 17/07/2022 - 19:50

    Pay increase was same as usual this year, around 3%. Bonus was better, about 1.5 months salary.

  • nse on 17/07/2022 - 20:10

    Will you be willing to take a pay cut when the market crashes?

    • netjock on 17/07/2022 - 20:27

      Which market?

      Share market or housing market?

      Imagine if employer came in and said since house prices have crashed 30%, in theory the cost of accommodation is lower and usually people pay 30% after tax salary into their mortgage, let's start with 10% pay cut and negotiate from there.

    • A-mak on 18/07/2022 - 22:25
      +1

      Will the supermarkets drop the prices of everything?

      Will electricity companies lower their rates? They didn't when the gov got rid of carbon tax.

      Will the local council lower rates? (They'd try and find an excuse not to but probably should, as if the value of houses drop this data is supplied by state governor general).

  • Some Human on 17/07/2022 - 20:14

    We all get paid too much in this country anyway. At my work we got a 3.7 percent increase and people are complaining it should be 10-20%. These are people who upgrade their phone when a new one comes out, buy new clothes and wear them once, upgrade their car every 2 years. Basically trying to live like a millionaire on a below average wage.
    They complained about how everything is going up. Maybe if they didn’t buy everything, they’d be fine.
    I was quite happy with the 3.7%.

    • random12 on 17/07/2022 - 20:27
      +4

      Well, new starters at your company likely got a 10℅ raise, and if you are happy with real pay cut of 6℅ then the executives must love you.

      • Some Human on 17/07/2022 - 20:50

        Everyone starts as a casual at my work, they make about $2 per hour more than me, but without the full time benefits.

        The union negotiates the pay for us. I’m happy with 3.7% because for the past 3 years it has been under 2%. I also know how lucky I am to live in this country and earn a decent wage in an industry that would pay FA in many other countries. I am appreciative and very grateful to live in a place where some of the biggest problems we face in society is having to spend slightly more money on useless junk than we did 2 years ago.

        • Pcosmic on 17/07/2022 - 21:51

          Good boi

        • A-mak on 18/07/2022 - 22:26

          Didn't realize Milk was useless junk, but ok.

    • netjock on 17/07/2022 - 20:28
      +1

      At my work we got a 3.7 percent increase and people are complaining it should be 10-20%

      You know people give themselves the peep talk going in. Go for 20%, tell them how good I am. Then cower in the corner like a 4 year old begging for a biscuit and happy coming out with a 3%.

      • Some Human on 17/07/2022 - 20:51

        The union negotiates it for us.

        • Vote for Pedro on 17/07/2022 - 21:29

          Are you a member?

          • Some Human on 17/07/2022 - 22:39
            -4

            @Vote for Pedro: Nope, but I don't want my boss to know that.

            • Vote for Pedro on 18/07/2022 - 07:12
              +3

              @Some Human: So when you say “The union negotiates it for us” you mean they negotiate for their members and you just leech of their hard work without contributing to the costs.

              • Some Human on 18/07/2022 - 10:25
                -2

                @Vote for Pedro: The union members I work with are so lazy I don't know how the business is still going. I (and my non union mates) not only pick up a ridiculous amount of slack for many of my colleagues, but we also catch and fix a lot of their mistakes before the products are sent to the customer.

                I was in the union for over a year and quit because I figured it was just for people who wanted to come in and get away with doing nothing all day. Also on a few occasions I watched the union rep stand idly by while the supervisor verbally abused employees and threw things across the room. I was the one who spoke up about it. The union rep did nothing. I quit the union shortly after.

                Not saying every union member in existance is lazy, but the ones I work with in no way do any "hard work".

                • Vote for Pedro on 18/07/2022 - 10:33

                  @Some Human: And yet, you are the leech.

                  • Some Human on 18/07/2022 - 11:30
                    -1

                    @Vote for Pedro: I’m a sucker, I’ll give you that. Pumping out 4x more work than the others while they take it easy all day doing less than the bare minimum.
                    I certainly don’t get paid 4x more.

                    • Vote for Pedro on 18/07/2022 - 11:40
                      +1

                      @Some Human: So you say. You are a freeloader. That’s the only thing we know for certain. You are happy to take handouts. For other people to pay but for you to reap the benefits.

                      Why don’t you hand back the payrise and negotiate it for yourself if you are that good?

                      • Some Human on 18/07/2022 - 12:40

                        @Vote for Pedro: Correct, I have no guilt. Having a go at me based on what little you know about me and my job will not change that. You talk about it not being fair, well here’s something you obviously haven’t learnt yet - life isn’t fair. It’s not fair that they pay the fees and I no longer do, it’s also not fair that I do significantly more work than they do. That’s life.

                        Do you also get angry at people receiving single mothers pension? The dole? Child care subsidies? All the other government handouts that every taxpayer pays for? Because I don’t think many people receiving those feel any guilt either.

                        Keep being angry at the world and see how happy it makes you.

    • SlartiBartFozz on 26/07/2022 - 15:08

      All ? What country are you comparing with?

      Not in my company, (non union industry) we last had any pay rise in 2017, which was 3% - wish for another 3%, but not a thing so far.

  • DingoBilly on 17/07/2022 - 21:11
    +1

    I think people are unlikely to get 7-10% raises in most places, your best option is to job hop as many others have stated above if you want a raise.

    But depends on your job and your situation as always, I get paid a shitload of money to do very little. I'd take a 0% payrise or you could probably cut $30,000-$50,000 and I'd still probably stay in the job.

    • Yola on 18/07/2022 - 07:59
      +2

      Sounds great. Where is this?

      • random12 on 18/07/2022 - 12:14
        +1

        I gotta work there. If he gets paid a ton to do nothing, and is happy to be paid 30-50k less (which means he must earn substantially more than 30-50k now)

  • Benoffie on 17/07/2022 - 21:15

    Absolutely nothing. Left and back into government pool which I think is tracking at the standard 2% pa

  • Vote for Pedro on 17/07/2022 - 21:25

    Get a job in an industry with high union density, then join the union.

    On average union workplaces pay much more than non union workplaces.

    • Vote for Pedro on 18/07/2022 - 10:08
      +1

      To the neg vote

      ”The median weekly earnings for employees who were trade union members in their main job were $1,450 per week, compared with $1,100 for employees who were not a trade union member.” - ABS

  • Pcosmic on 17/07/2022 - 21:53
    +3

    Got a 15% payrise. Department realised that they were losing too many workers and gave us one before the performance cycle even started

    • OzFrugie on 19/07/2022 - 10:44

      What profession are you in? Sounds like a good proactive company

      • Pcosmic on 19/07/2022 - 10:55

        IT in a top 100 ASX company

        • OzFrugie on 19/07/2022 - 11:02

          what part of IT if you dont mind me asking?
          were you under market pay to begin with and now in line with market, or were you in line with market and now above market rate?
          just curious as I heard from many people that IT skills are in demand, especially soft eng, data eng and cybersecurity people

  • bmxr on 17/07/2022 - 21:59
    +3

    You are just making up the 7-10%.

    Actual statistics below;

    Annual CPI inflation increased to 5.1 per cent in the March quarter, due to higher dwelling construction costs and automotive fuel prices. Trimmed mean annual inflation, which excludes large price rises and falls, increased to 3.7 per cent, the highest since March 2009

    https://www.abs.gov.au/statistics/economy/price-indexes-and-….

    Also from the ABS

    Wages grew by 2.4% over the year to March quarter 2022, with the annual rate of growth rising in each of the last five quarters from a low point of 1.4% in December quarter 2020

    https://www.abs.gov.au/statistics/economy/price-indexes-and-…

    The real statistics are there and pretty easy for both employers and employees to see.

    Anything more than a 2.4% increase is above average, relative to other wages, regardless of what the CPI is.

    I'd like to state that this is not my opinion, it's just fact.

    • random12 on 17/07/2022 - 22:34
      +1

      That value is to March. The rate is still increasing, and USA is reporting 9℅.

      Wages growth lags duh. Most people's pay is only reviewed once per year, and most people are hesitant to ask at the best of times.

    • Vote for Pedro on 18/07/2022 - 08:05

      ’Reserve Bank of Australia governor Philip Lowe says inflation will peak at a “very high” 7 per cent late this year’ - AFR

    • orangetrain on 18/07/2022 - 09:32
      +3

      If you look into how they calculate the statistics, it's terrible at handling substitutions which means inflation looks under-reported.

      ie people are going from buying steak to buying mince for same price.

      If people started buying dog food instead of mince for same price because mince went up in price, would you say inflation is the same because spending is the same?

      You know how CPI is useful? When people have more money. RBA is trying hard to force wages to stay the same even if people eat dogfood

  • Guybrush57 on 17/07/2022 - 23:48

    Anyone see that comic where the monster gives chase if the average income increases too fast?

  • 2esc on 18/07/2022 - 09:07
    +1

    Very few industries will give you a 7% increase. Some unions are currently in negotiations just trying to get better than 2%. A new job is your best bet to get a good payrise.

  • MrBear on 18/07/2022 - 10:11
    +1

    Given inflation at 7 - 10%

    It is not this high, and if so, it has only been for a month or two. The average over the past year is much lower.

    https://www.rba.gov.au/inflation/measures-cpi.html

  • Quantumcat on 18/07/2022 - 10:16
    +1

    Don't think I'm getting any pay increase at all, but this new job was a 50% payrise from my last job so I am not complaining. I can always job hop in a year or two.

  • th123 on 18/07/2022 - 22:29

    0% increase, 0 bonus, the super increase was taken out of everyone's total pay package. Company reported a net profit after tax ~$20m

    • Yola on 19/07/2022 - 19:35
      +1

      That must really motivate you to work hard for them. Not.

      • th123 on 19/07/2022 - 20:00
        +1

        The super part is so minor but is a good kick in the face when you hear other companies covering the 0.5 for their employees. Also talks that when we hit 2023, bonus will be scrapped permanently lol.

        • Yola on 20/07/2022 - 05:56

          Start looking for another job. The company my husband works for gives pay increases and shares for bonuses. All staff gets 6 paid days off a year - just because. During summer they had Friday afternoons off and arrangements were made to ensure call center staff were rostered to take the half days another time. During lockdowns, they sent regular care packages to all staff and scheduled activities eg. art class and whisky tasting with all materials posted out beforehand. They send out presents for staff birthdays. And this was before the great resignation and staff shortages. A US IT services company.

  • Homr on 19/07/2022 - 15:59

    I got 13% increase this year including super, but I'm still 10-15k below market rate

    • Yola on 19/07/2022 - 19:35

      Better find another job.

  • blueyez on 25/07/2022 - 20:52

    No increase as I'm too new to the company.

    At my old job it was constantly 0% increase - and they offered a 'package' so the higher super went up, the lower your pay went.

  • SlavOz on 26/07/2022 - 20:56
    -2

    Expecting an industry-wide pay rise for every employee is just pathetic laziness. It is not your employer's job to manage your cost of living. Go and find a better paying role if you need more money to survive. Or find a way to cut back on your spending.

    I left my job of 3 years to pursue personal changes. A few months later I was scooped up by one of their competitors who offered me 20% more than my previous salary.

    Quitting is the best way to escape a low paying job. This is how the economy works. If you refuse to get on board, that's your problem. I'm so sick of playing it smart and growing my own salary, only for the nurses and teachers to come demanding more of my taxes so they can get a pay increase for doing nothing.

    If their pay isn't cutting it, they can do what everyone else does and find a better paying job. Leave the nursing roles to those who can afford to live on a nursing salary.

  • salekhard on 23/08/2022 - 01:19

    We are expecting maybe 2-3%. Unfortunately because of labour shortages and sick leave coverage, most people are covering for someone else so everyone is already working more.

    I do agree, quitting is the way to better raises. Unfortunately not all have the option of quitting without some serious consideration to other factors.

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