You can’t stop change but you can prepare for it and choose how you respond to it.
Understanding Salary Shifts and what the data tells us…
Understanding Salary Shifts and what the data tells us...
In the past six months, analysis shows that the percentage of employees obtaining 3-5% salary increases has increased slightly, while those getting more than 5% or between 1-3% has gone down. This indicates that employers are being more cautious with their salary decisions, opting for moderate raises to balance cost-of-living pressures. This trend matches the latest Wage Price Index (WPI) results, which show a slight decrease from 4.2% to 4.1% this quarter. Notably, this is the first drop in private sector annual wage growth since 2020.
From 1 July 2024, the National Minimum Wage will increase by 3.75%. The new National Minimum Wage will be $915.90 per week or $24.10 per hour, effective from the first full pay period on or after this date.
As the labour market changes, companies need to adjust their pay strategies to reflect these trends. After job security, fair pay has become the second most important reason people stay with their employer, up from fourth place in 2022.