A fair day’s work for a fair day’s pay. It’s the Australian way, right? But how can you tell if you’re really being paid what you’re worth? We take a look.
It’s only natural that you want to be paid what you’re worth. And in these days of low wage growth it’s even more important to be sure you’re being paid fairly.
The trouble is, plenty of people aren’t sure if their pay cheque is fair.
Industry research shows 37% of Australian workers don’t think they’re being paid a fair salary. Among these workers, 45% believe they’re unfairly compensated in relation to their workload and responsibilities. Over a third feel their salary is lower than the industry average for their role.
The problem is that these sorts of concerns can see you thinking about switching jobs – in fact, 98% of Australian workers say they would accept a job with higher pay if they felt they weren’t being paid fairly.
But it may not be necessary to go to such extremes, especially if you otherwise enjoy your job and the people you work with.
If you’re thinking about applying for a home loan, it can pay to stay in your current role – lenders like to see stable employment, and ideally you will have been in your current job for at least three to six months or have passed any probation period.
Understand what’s fair for your role
The good news is that what is “fair” pay for your job doesn’t have to be a mystery. There are free benchmarks, reports and other resources available to give you a clear idea of what you should be earning.
If you’re paid according to an award, the government’s Fair Work website provides an online calculator that shows what your base pay, allowances and penalty rates should be.
Where that’s not the case, recruitment firms like Robert Half publish an annual Salary Guide accompanied by an online salary calculator that covers workers in administration, IT, finance and accounting. For instance, if you’re a sales coordinator in Sydney, you can expect to be earning between $45,000 and $60,000 annually. Or, if you’re a Melbourne-based bookkeeper, the market salary is anywhere between $55,000 and $75,000. A similar online salary calculator is available through Robert Walters. Or check out Hays Salary Guide.
For other roles including trades, a handy pay calculator can be found on Glassdoor. It shows for instance, that a plumber in Perth should be earning around $42 per hour.
Know what you bring to the job
Before hitting the boss up for a pay rise, think about what you bring to the table. Your experience, skills and the complexity of your role will all determine whether the salary that is “fair” for you is at the upper or lower end of market salary ranges.
Look back over any new skills you’ve acquired, or additional work completed outside your normal job description so that you can mention these if you plan to approach your employer about an uptick in pay.
Even if you do discover you’re not being paid fairly, try to remain patient. The reality is that not all employers are in a position to give a pay rise then and there. But giving the boss plenty of notice that you’d like to discuss an increase in pay, and arming yourself with information on market salaries for your role and location are smart starting points to help increase your pay packet.
If you want to talk to your Aussie Broker about securing a home loan, feel free to get in touch here.
You may also be interested in Could you boost your borrowing power by asking for a pay rise?, It pays to be upfront about income and Increase your income with a flexible side gig.