Pay rises Australians need to tackle rising cost of living   
The country’s cost of living crisis isn’t fading away any time soon after inflation still remained high, leaving people scrambling to find more money.


News.com.au
April 25, 2024

Australians were hit with the bad news that inflation came in hotter than expected in the first three months of the year – dampening hopes for interest rates to be slashed – but also exposing their desperate need for a pay rise to keep up with cost of living hikes.

The consumer price index (CPI) rose 1 per cent in the first three months of 2024, the Australian Bureau of Statistics reported, up from 0.6 per cent in the December quarter, and well above the 0.8 per cent increase forecast by economists.

The quarterly result brought annual headline inflation to 3.6 per cent.

This means the average working Australian earning an annual income of $98,218 would have needed a $3536 pay rise to have kept pace with inflation over the past year, according to Canstar’s analysis.

For those on $70,000, they would need their pay packet to grow by $2520 to tackle higher prices, while people earning $110,000 required an extra $3960 a year.

The pay rise people would need to keep up with inflation.

Higher income earners on $130,000 needed to seek out a pay rise of $4680 to keep up with the cost of living, while those with a salary of $210,000 required an extra $7560 to top up their pay packet.

“If you haven’t job hopped or your boss hasn’t increased your wages to keep pace with inflation in the past year, a common case for many working Australians, you might need to take matters into your own hands to offset the shortfall,” said Canstar’s group executive of financial services Steve Mickenbecker.

“According to Canstar’s Cost of Living Comparison, switching to the cheapest or best-value options for expenses like home loans, car insurance, electricity, internet, phone plans and even the weekly grocery shop can amount to savings.

“It may be possible to save close to $12,741 in the first year alone by making changes. Savings like this could improve the financial strain caused by inflation on household budgets.”


Aussies may need to seek out savings elsewhere to tackle price rises. 

It comes as new research published in recruiter Robert Half’s 2024 Salary Guide found

Australian employees are expecting to be compensated for their work arrangements, whether they attend the office or work from home.

Almost two thirds of workers said they want commuting assistance or allowance for fuel if they are expected to attend the office.

At the same time more than half of employees showed a preference for an allowance for home office equipment from their employer and 61 per cent expect financial allowances to work from home if they are hybrid.

“Employees no longer see some benefits as an extra but rather an expectation,” said Robert Half director Nicole Gorton.

“The hybrid and remote workplace has strongly influenced the benefits employees expect with the in-office worker, the remote worker and the hybrid worker all wanting to be compensated across various work setups.”


Yet there is a mismatch between what perks employers offer or plan to provide versus what employees really want in 2024.

Businesses are planning to give extra leave entitlements, company equipment and increased superannuation contributions, according to the survey, but employees are prioritising money-related perks such as health insurance, a flexible benefits program and an extra bonus.

“Benefits can be an important differentiator for employees when it comes to accepting a job offer and looking to work elsewhere, particularly when the salary isn’t spot on,” said Ms Gorton.

“As well as providing value for employees by financially offsetting some of their work-related costs, perks and benefits also provide value for employers who may not be in the position to offer increased salaries.”

People want compensation even if they work from home.

Grappler Racist Filth wrote on Apr 27^th, 2024 at 12:24pm:


Hmm,  good analysis so far  - but why do I suspect you are about to spoil it?

Quote:


Ouch - wrong in the very next two words: "comparative prosperity".

The issue is the cost of living which is particularly badly affecting the 30-40% of the population who are less well off and in housing stress.   

eg, Hawke was onto something with the 'prices and income accord', but opening the Oz economy to global competition hurt many displaced workers.

So the rest of your post - 'colourful' though it is - is merely GIGO. 

thegreatdivide wrote on Apr 27^th, 2024 at 1:13pm:


Still can't get your mind around that simple reality, can you?   Someone in ostensibly the same economic situation can be relatively more prosperous.... actually have more per erg of effort.... remember the kepheir in the resort on the red Sea compared to the keffir in the city in Sudan?  You don't know what I'm talking about, do you?

That Abo on the beach with no demands on his time and catching fish etc is one hell of a lot better off than the same Abo in a big city  on the struggle in Struggle Street... comparative prosperity, innit?

When you can make do with the same and it easily spreads further due to your advantages of location etc, clearly you are more prosperous.

I give up on you - you WILL not be taught.... you just don't want to be taught.