Are you in line for a pay rise this year?

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The short answer is, yes, you’re probably in line for a pay rise this year. The bad news is that, on average, it may not go as far as you’d hope, with increases stabilising around inflation levels.

The Hays Salary Guide FY26/27 shows that while most employees are still receiving pay rises, salary growth is sitting at around 3.3%. While this is broadly in line with inflation, it does fall below many employee expectations.

New Zealand’s employers and employees not aligned expectations

Although most employees do continue to receive increases, the data highlights a persistent disconnect between expectations and outcomes, with many professionals dissatisfied with the size of their pay rise.

Around half of the surveyed professionals reported feeling underpaid despite receiving an increase, highlighting that pay reviews are not always translating into improved satisfaction.

Will I receive a pay rise in my next review?

To see if your skills are in line for a salary increase this year, visit our online Salary Checker to view the highest, typical, and lowest salaries for your job.

How much should my salary increase each year in New Zealand?

Salary increases in New Zealand are now more targeted and typically sit around inflation levels (approximately 3.3%), with employers focusing on retaining key talent and managing costs rather than broad-based pay rises. Increases vary based on skill demand, performance, and business conditions.

Experience of recent years drive up employee expectations

The last few years have seen incredible change in how people work. Flexibility and adaptability, combined with skills shortages, have changed how employees feel when it comes to salary increases.

While expectations remain high, current sentiment reflects a more cautious workforce. Professionals feel secure in their roles but increasingly dissatisfied with progression – both in terms of salary and direction.

Design the employee experience

To bridge the expectation divide, employers and professionals should look beyond just the numbers and consider the entire employee experience being offered.

While competitive remuneration remains important, the FY26/27 data shows salary alone is no longer enough to drive satisfaction. Employees are placing greater emphasis on clear growth, career development, purpose, and organisational culture.

Flexibility and hybrid working continue to rank among the most valued benefits, though they’re seen as more of a hygiene factor than a truly enticing benefit. They slot in alongside learning opportunities and wellbeing support, reinforcing the growing importance of total employee experience.

If all else fails, consider your options

Of the skilled professionals we surveyed, over a third are currently looking or planning to look for a new job in the next 12 months. A significant proportion of professionals have been in their current role for less than four years, so long tenures and loyalty by default are becoming increasingly rare.

For professionals with skills in demand, the time may be right to consider an external move to speed up your progression. If you are considering your options, we invite you to share or update your CV so we can bring opportunities to you directly.

Look for benefits beyond just salary

There are several benefits you can seek that are of tangible monetary value or allow you to save on personal costs.

Performance bonuses

Employers can offer performance-based bonuses that are tied to achieving specific goals, targets, or milestones. These bonuses can be an effective way to reward and motivate employees based on their individual or team performance.

Flexible working arrangements

Greater flexibility in working hours or the option to work remotely helps employees save on commuting costs, reduce stress, and achieve a better work-life balance, which indirectly compensates for the impact of inflation. This continues to be one of the most sought-after benefits in today’s workforce.

Additional perks and benefits

Employers can enhance their employee benefit packages with non-monetary perks. These can include increased paid time off, improved healthcare coverage, gym memberships, wellness programs, childcare support, and educational assistance.

Download Hays Salary Guide FY25/26