Never mind your KPIs – your salary should be based on Australia’s CPI
It’s time to ask your boss for a raise.
A study by personal finance specialist Mozo revealed Australian workers should be asking employers for a raise of no less than $1,000 to cope with the rising cost of living.
Businesses may be working to rein in their own expenses, but workers should also consider requesting a salary increase given their tightening household budget. In the past year, Australia’s Consumer Price Index (CPI) showed living costs rose 2.1%.
“Negotiating your salary can be nail biting for any employee,” said Mozo Director Kirsty Lamont. “But regardless of stellar performance, KPIs met or bonuses promised, there is one thing that every employee should absolutely be pursuing, and that’s a pay increase based on the CPI.”
“Many companies have put a freeze on wage increases due to slow growth or low profit margins,” she said. “Even if this is the case, you should be pushing for a CPI salary increase, otherwise you should expect less extra cash to play with each year.”
While household debt, home loan rates, and the prices of goods continue to increase, wage growth in the country has been relatively stagnant, Lamont noted.
Based on figures from the Australian Bureau of Statistics in the past year, wages increased but only at the same rate of 2.1%. Workers are barely keeping up.
An additional income of at least $90 per month is needed to help employees stay afloat.
“If your wage fails to grow year on year, you’re the one who is swallowing the rising costs of food, transport, housing, and other every day costs,” said Lamont.
Mozo recommends three steps when asking your boss for a raise:
- Know your numbers.
- Give real-life examples.
- List your achievements.
For more tips on how to negotiate a raise, check out this advice from HRD.
Infographic by Mozo
