Workers ‘nowhere near’ combating cost of living with current wages

New research has shown that a number of Aussie workers claim that their salaries are failing to keep pace with the cost of living.

ELMO Software has revealed that 45 per cent (equating to 5.76 million) of Australian employees have claimed that their wages are failing to keep pace with the cost of living, driving economic insecurity and burnout among the Australian workforce.

One in eight (12 per cent) workers said they are “nowhere near” earning enough to meet themselves and their families’ financial needs. Fifty-five per cent admitted that they earn enough, while 42 per cent claimed they are only just scraping by.

Just one in three employees (33 per cent) feels the economy is in a secure position, down from 53 per cent last quarter.

On top of that, the number of workers worried about redundancy has surged from 28 per cent to 43 per cent, with almost half (48 per cent) feeling they need to work harder or put in longer hours to keep their job safe (up from 37 per cent) – a clear sign of anxiety amid broader economic uncertainty.

“Job insecurity is rising – not necessarily because of what’s happening inside organisations, but because of the uncertainty people are feeling more broadly,” said Joseph Lyons, chief executive of ELMO Software.

“When employees feel financially stretched, it often shows up in their wellbeing, their energy, and ultimately their performance at work. It’s a challenge people leaders can’t afford to ignore.”

Just 12 per cent of workers reported receiving a promotion, while 27 per cent have taken on additional responsibilities.

Exacerbating these issues, there’s a growing gap between what employees believe should influence their pay increases. The data showed that one in three employees (34 per cent) said individual performance should drive pay decisions, yet only 22 per cent believe their employer prioritises this.

Data from ELMO indicates that employee remuneration increases often boil down to a combination of individual performance and market rates (31 per cent) – but perceptions still differ.

“This research highlights a growing disconnect between employee expectations and the realities of pay.

“That disconnect between effort and reward can have real implications for engagement, retention, and productivity,” said Lyons.

“In uncertain times, workforce data becomes even more critical. Leaders who understand how their people are feeling – and why – are the ones best equipped to respond with empathy and impact.”