Half of Australian Workers Feel Underpaid: Is Your Salary Keeping Up?

The latest Hays Salary Guide for FY26/27 reveals a striking disconnect in the Australian workforce: 50% of workers feel underpaid, even as 66% feel secure in their jobs. This gap between job security and satisfaction is a ticking time bomb for employers.

The Pay Reality Check

• Average salary increases were about 4%, barely matching inflation, leaving many with no real wage growth.
• 42% of employees received little to no meaningful increase in the past year.
• Only 12% saw raises between 6% and 10%.
• Lower-paid workers (earning under AUD $79,000) were hit hardest: 62% saw minimal growth vs. 36% of higher earners.

The Retention Illusion

While only 20% changed jobs in the past year, this low mobility masks growing dissatisfaction. Among those considering a move:

• 36% cite lack of future opportunities.
• 33% point to unclear promotion pathways.

Matthew Dickason, CEO of Hays APAC, warns: "Employers shouldn't confuse low mobility with low dissatisfaction. The conditions for a retention problem are building underneath stable turnover numbers."

Why Workers Stay & Why They Leave

Top reasons to stay:

• Relationships with colleagues/managers (42%)
• Stable income/benefits (42%)
• Job security (34%)

Top reasons to leave:

• Salary/benefits (43%)
• Lack of future opportunities (36%)
• Low pay (30%)

Flexible working has become a standard expectation, not a perk. While 70% value it, only 30% cite it as a reason to stay.

The Skills & AI Gap

• 82% of employers face skills shortages.
• 60% of professionals use AI regularly, yet 78% have no formal training.

Outlook

• 32% of professionals are optimistic about the economy; 32% are not.
• Employers are more cautious: 28% optimistic, 32% not.
• Younger workers (under 29) and those over 50 are more optimistic than the 30-49 age group.

Dickason advises workers: "If you're feeling dissatisfied, work out what's actually driving it before you make a move. Sometimes it's salary. Often, it's progression, role clarity, or whether you can see a future where you are."