How much should my salary increase each year in Australia?
If you are wondering how much your salary should increase each year in Australia, the short answer is that there is no single figure that applies to everyone. Your pay rise depends on your industry, your role, your employer, and the broader economy. However, you can use the national full-time average as a benchmark to see where you stand.
The national full-time average as your reference
The Australian Bureau of Statistics (ABS) publishes Average Weekly Earnings twice a year. In May 2026, full-time adult ordinary time earnings averaged $2,083.70 per week. That works out to about $108,352 per year (multiply by 52). This is the figure this site uses as the line. If your salary is above this, you are earning more than the typical full-time worker; if below, you have room to grow.
For context, the full-time median (the middle point where half earn more and half earn less) is about $90,532 per year, based on the ABS Employee Earnings survey from August 2025. The all-employees median (including part-time and casual) is about $74,100 per year. These medians are lower than the average because high earners pull the average up.
What does a typical annual increase look like?
The ABS data shows that full-time adult ordinary time earnings increased by 3.7% in the year to May 2026. That is a useful benchmark for a typical pay rise. If your salary increase is around that percentage, you are keeping pace with the national average. If it is higher, you are gaining ground; if lower, you may be falling behind.
Award-covered employees saw a larger increase. Fair Work raised award minimum wages by 4.75% from 1 July 2026. The national minimum wage itself rose to $26.44 per hour, or $1,004.90 per week for a 38-hour week, which is about $52,255 per year. If you are on an award, your minimum increase is set by that decision, but many workers earn above the award rate.
Another measure comes from the ABS Employee Earnings survey: the median weekly earnings for all employees rose 1.9% from August 2024 to August 2025. That is a slower pace than the average, partly because part-time and casual workers saw smaller gains. For full-time employees, the median weekly earnings rose 2.4% over the same period.
A take-home sketch using the average
To understand what the average salary means in your pocket, consider the 2026–27 resident tax rates. The tax-free threshold is $18,200. Then you pay 15% on income up to $45,000, 30% on income up to $135,000, 37% on income up to $190,000, and 45% above that. There is also a 2% Medicare levy (with possible reductions for low incomes).
On the average salary of $108,352, your estimated tax is about $24,500 and Medicare levy about $2,167, leaving a take-home of roughly $81,685 per year, or $1,571 per week. That is before any salary sacrifice or deductions. If your salary increases by 3.7% to about $112,360, your take-home would rise by roughly $2,500 after tax. The exact amount depends on your circumstances.
How to use this information
Place a salary on the line to see how your pay compares to the national full-time average, the medians, and the minimum wage. The tool shows your weekly and hourly equivalents on a 38-hour week, and tells you how far above or below the line you sit.
You can also explore states and territories to see how averages differ. For example, the Australian Capital Territory has the highest full-time average at about $119,090, while Tasmania is lowest at about $96,008. Your location matters.
Factors that influence your salary increase
Your industry, occupation, and bargaining power all play a role. The ABS publishes industry and occupation breakdowns in its Employee Earnings survey. For instance, the median weekly earnings for full-time employees in mining are much higher than in retail. If you work in a high-growth sector, you may expect larger increases.
Enterprise agreements and individual contracts often specify annual increases. Some agreements tie rises to the consumer price index (CPI) or a fixed percentage. The Fair Work Commission also reviews award wages each year, which can set a floor for many workers.
What if you are not getting a raise?
If your salary has not increased in line with the national average, you may want to discuss it with your employer. Use the data from the ABS and Fair Work to support your case. The How the figures are set page explains the sources and methods behind the numbers.
Remember that the national average is just one benchmark. Your personal value, skills, and market demand also matter. The line tool can help you see where you stand and set a target for your next negotiation.
Summary
There is no single answer to how much your salary should increase each year in Australia. The national full-time average rose 3.7% in the year to May 2026, and award wages rose 4.75%. Use these as starting points. Compare your pay to the average, the medians, and the minimum wage. Then decide what a fair increase looks like for you.