How to Ask for a Pay Rise in 2026

If you've been putting off the pay conversation, stop waiting. The timing right now is about as good as it gets.

CPI has risen roughly 15% since 2022. If your salary hasn't moved by at least that much, you're earning less in real terms than you were three years ago. That's not a feeling — it's maths.

Here's what's lining up in your favour:

• The Fair Work Commission's 2026 Annual Wage Review is underway right now, with a decision expected in June. Last year's increase was 3.75%. Employers know another rise is coming.
• New financial year budgets are being finalised. Companies are allocating headcount and compensation budgets for July onwards — this is when decisions get made.
• The labour market is still tight in many sectors. Replacing you costs your employer 50-200% of your annual salary in recruitment, training, and lost productivity.

Walking in now — before budgets are locked — gives your manager room to actually say yes.

You can't negotiate if you don't know the number. Before you have any conversation about pay, you need to know exactly what your role pays in the current market.

Here's how to find out:

• Use our Salary Benchmark Tool — enter your role, industry, and location to see current market rates
• Check the ABS Average Weekly Earnings data (released quarterly) for your industry
• Look at current job ads for your role — they increasingly list salary ranges
• Talk to recruiters. Even if you're not looking, a 10-minute call gives you real market data.

Know the range, not just a single number. For example: "Senior marketing managers in Sydney are earning $120,000-$145,000. I'm currently at $110,000." That's a factual statement your boss can't argue with.

If you're on an award, check your exact rate with our Pay Rate Lookup — you might already be entitled to more than you're getting.

Market rate gets you in the door. Your track record closes the deal.

Before the meeting, write down your top 5-10 achievements from the past 12 months. Be specific. Use numbers. Attach dollar values wherever possible.

Good examples:

• "I managed the warehouse relocation that came in $40,000 under budget"
• "I brought on 3 new clients worth $180,000 in annual revenue"
• "I reduced customer complaints by 35% after redesigning the onboarding process"
• "I trained 4 new team members, saving the company roughly $12,000 in external training costs"

Bad examples:

• "I feel like I work really hard"
• "I've been here for 3 years and deserve more"
• "Everyone else is getting paid more" (unless you have data)

The shift is from "I deserve" to "the evidence shows." Employers respond to business cases, not feelings.

When you ask matters almost as much as what you ask for.

Best times to ask:

• Right after completing a successful project or hitting a big milestone
• At your scheduled performance review (but don't wait if that's 6 months away)
• When the team is growing or hiring — your employer is already spending on talent
• When your role has expanded beyond your job description
• March-May — before new financial year budgets are finalised

Worst times to ask:

• During layoffs or a restructure
• Right after the company reported a major loss
• Monday morning before your boss has had coffee
• Friday afternoon when everyone's mentally checked out
• Immediately after making a mistake (wait a few weeks)

Book a dedicated meeting. Don't ambush your boss in the hallway or tack it onto the end of a team standup. Send a calendar invite with something like: "I'd like to discuss my role and compensation — could we find 30 minutes this week?"

Here's a word-for-word script you can adapt. Practice it out loud at least twice before the meeting.

Opening:

"Thanks for making time. I'd like to discuss my compensation. I've been doing some research into market rates for my role and I'd like to share what I've found, along with some of the work I've contributed over the past year."

Present your case:

"Based on current market data, the salary range for [your role] in [your city] is $X to $Y. I'm currently at $Z, which is [below/at the lower end of] that range. Over the past 12 months, I've [achievement 1], [achievement 2], and [achievement 3]. I believe my performance and the market data support an adjustment."

Make the ask:

"Based on this, I believe an adjustment to $[specific number] would be fair and in line with both the market and my contribution. What are your thoughts?"

Key principles:

• Name a specific number, not a range. If you say "$120k to $130k", you'll get $120k.
• Ask for slightly more than you'd accept. If you want $125k, ask for $130k. Negotiation 101.
• End with an open question. "What are your thoughts?" invites dialogue instead of forcing a yes/no.
• Stay calm and factual. This isn't an argument — it's a business discussion.

A "no" doesn't have to be the end. It's often just the start of a different conversation.

Ask what it would take:

"I understand. Can you tell me specifically what I'd need to demonstrate to reach $[amount]? I'd like to work towards that."

Get their answer in writing. If they say "hit $500k in sales" or "complete the management course," you want that documented so you can hold them to it.

Explore non-salary alternatives:

• Extra annual leave days (even 2-3 extra days has real value)
• Work-from-home days or flexible hours
• Professional development budget ($2,000-5,000 for courses or conferences)
• A title change (which positions you for a higher salary at your next role)
• One-off bonus or sign-on equivalent

Set a review date:

"Can we revisit this in 3 months? I'd like to check in on my progress against the criteria you've outlined."

Put that date in both your calendars. If 3 months pass and nothing changes, you have your answer — and it might be time to test the market.

This section is different. If you're covered by a modern award and your employer isn't paying the correct rate, this isn't a negotiation — it's a legal entitlement.

You don't ask nicely for your award rate. You're owed it. Full stop.

Under the Fair Work Act, paying below the applicable award rate is unlawful. Since January 2025, deliberate underpayment is a criminal offence carrying penalties of up to $7.825 million for companies and potential jail time for individuals.

What to do:

1. Use our Underpaid Check tool to calculate the gap between what you're being paid and what you're owed
2. Use the Pay Rate Lookup to confirm your exact award rate based on your classification and experience level
3. Raise it with your employer in writing, citing the specific award and classification
4. If they don't fix it within one pay cycle, lodge a complaint with the Fair Work Ombudsman — they investigate for free

You can claim back pay for up to 6 years. If you've been underpaid by even $2/hour for 3 years of full-time work, that's roughly $12,000 you're owed.

Here's where the market sits right now, so you know what's realistic:

• Average salary increase in Australia (2026): 3.5-4% across all industries
• Predicted minimum wage increase (July 2026): 3-4%, based on the Fair Work Commission's Annual Wage Review
• Current minimum wage: $25.50/hour ($969.00/week) as of July 2025
• CPI (annual): Running at approximately 3.2% as of early 2026

If you haven't had a pay rise in 12 months or more, you've effectively taken a pay cut. A 3.5% rise doesn't even keep pace with inflation in some categories — housing costs alone have risen faster than headline CPI.

Don't accept "we'll review it later" as an answer. Later never comes. If the business can afford to keep you employed, it can afford to pay you the market rate.

Use our Take Home Pay Calculator to see exactly what a pay rise means in your pocket after tax. A $10,000 gross increase on an $80,000 salary puts roughly $6,730 extra in your hand per year — that's $258 more per fortnight.

Check if you're being paid fairly right now with our Am I Being Ripped Off? tool.