Key Points
- In Australia, you can ask for a pay rise at any point of time when you believe you deserve one.
- You can prepare for a pay rise request with help from your union, colleagues, or on your own.
- Proper preparation, including seeking advice, gaining knowledge, and planning arguments, is crucial before requesting a raise.
If you feel intimidated by the thought of asking your boss for a pay rise, rest assured that you are not alone.
According to human resources expert Kate Gately, many employees find this situation uncomfortable. However, it doesn't have to be that way.
“That discomfort is more about them, as opposed to what is culturally appropriate or common practice in Australia. It’s OK to ask for a pay rise. The key is knowing how to go about that, so that it has the optimal impact in getting the outcome you want,” Ms Gately explains.
While rules around pay rises vary across workplaces, it's generally acceptable for employees to negotiate an increase in their salary.
Suzanne Young, Professor of Management (Governance and CSR) at La Trobe University, says the best time of the year in Australia for having that pay conversation with your boss is just before the end of the financial year, around April/May.
When the budget and the finances are set out for the next year…That would be the time where you would be asking for a meeting to discuss any potential pay rises, so that it's built into the budget for the next year.Suzanne Young, Professor of Management (Governance and CSR), La Trobe University,
An annual increase in a worker's pay can also be a legally mandated entitlement.
If you have signed a job contract, this will likely include conditions about pay rises and their timeline. Credit: djgunner/Getty Images
How do I know if I am entitled to a pay increase?
Most Australian workplaces are covered by the , a collection of legislation on national workplace protections. These include award rates which set out legal minimum wages for employees in specific industries and occupations.
Employees covered by an award are entitled to annual minimum increases in their pay rate, as decided by the following union negotiations.
Provisions for legal minimum wage increases also apply in workplaces where an enterprise agreement exists, setting out entitlements based on negotiations between the workers with their representative and the employer.
Employees can also negotiate a pay rise beyond the legal minimum pay increase they are entitled to if they think this is a valid request.
“So, they can negotiate a pay raise for anything over and above… or they can negotiate a change of classification in their role if they're doing more than what the role description states, and that would probably allow them to then have a pay rise,” Prof Young says.
Lack of pay transparency in a workplace can create disparities between different groups of employees. Credit: Klaus Vedfelt/Getty Images
Effective negotiation
Checking comparable salaries on job sites, within your industry network, and in your workplace environment is essential for gaining the necessary knowledge and leverage to negotiate effectively.
However, there is often a culture of secrecy surrounding pay in workplaces, which disproportionately impacts young employees, women, and minority groups.
Professor Young says, initiating conversations about pay conditions with colleagues you're comfortable with can help address and raise awareness of pay disparities.
“ If you have a union representative in the workplace, you could ask those people as well, because they would have more idea about the pay across the workplace.”
Michele O’Neil is the President of the Australian Council of Trade Unions.
She says, a union representative can also help you find out about the salary earned by workers in similar positions to yours across the industry and use these data in your pay rise negotiations.
Ms O’Neil argues that it is easier to negotiate better pay conditions as a union member and alongside other workers.
“Even if your workplace hasn't had an agreement before, you can join together with other workers in the union to say we want to negotiate an agreement for everyone who works here.
The first step before asking for a pay rise is finding out if you are covered by an award or enterprise agreement, says Prof Young. Credit: AnVr/Getty Images
If you’re making the request on your own behalf Prof Young suggests that you focus your discussion on the value you’re bringing.
“[You should be] focusing the argument around what you've achieved in your job to look into sort of evidence that you have. And so, can you demonstrate for example, a greater rate of efficiency?"
Preparation before putting forward a pay rise request is essential, Ms O’Neil says.
“Thinking about what the arguments are, for example when was the last time you got a pay increase, how your job might have changed, if you've got more responsibilities, working different hours, your work has become more intense, or you've learned new skills.”
Employees and future employees have the right to share or not information about their pay and ask other employees about their pay. Credit: goc/Getty Images
The psychology of asking for a pay rise
According to human resources expert Karen Gately, the approach you take when asking for a pay rise depends on factors such as the type of organisation you work for and the accessibility of your manager.
“If they're sitting in their office routinely, then you might be able to knock on the door and ask whether now convenient time is to have a conversation with them. In other settings, it will be more appropriate to ask to make an appointment to talk to them.
But she says there is no need to overthink the situation.
“I think not making it a problematic event in your own mind will really help.”
Pay rise conversations happen always take place in one-one chats. Credit: kate_sept2004/Getty Images
- Knowledge is crucial: Go beyond checking average salaries for your job title and conduct a more comprehensive search.
- Timing matters: Seize opportune moments to request a pay rise when the timing is right within your organisation. Alternatively, consider negotiating a pay increase a few months ahead, giving your boss time to consider without pressure.
- Adopt a positive and calculated approach: When discussing salary, put yourself in your employer's shoes. Emphasise how a pay rise can contribute to driving greater value for the business or reducing costs.
Prof Young also agrees it is essential to maintain a professional and pragmatic approach when making your case.
When you're asking for a pay rise, it's really important to not be emotional, and to use the evidence to support your request, rather than say ‘Well, I've worked hard or it's difficult to live because of the CPI [Consumer Price Index]'.Suzanne Young, Professor of Management (Governance and CSR) , La Trobe University,
“It's really about making sure you've got that evidence and you're presenting that in a really businesslike manner, to show them that you're improving and working hard for the organisation.”
Useful links-resources
- The Fair Work Commission has information on pay rates under enterprise agreements, and how to create an enterprise agreement, .
- Further information about minimum wages is available . Employees may have additional rules about pay rises under their employment contract or workplace policy.
- Information on general workplace protections for people working in Australia can be found . For example, an employer cannot dismiss an employee or take other adverse action against them because the employee is entitled (where applicable) to a pay rise.
- The FWO has a range of resources including a step by step guide to help employees when their and a free online course to help with .
