Recent research from ELMO Software reveals that 45% of Australian employees, approximately 5.76 million workers, feel their salaries are not keeping pace with the rising cost of living. The ELMO Employee Sentiment Index, which surveyed over 1,000 Australian workers between January and March 2025, highlights growing financial strain and declining confidence in economic security.
The study indicates that 12% of employees are significantly under-earning relative to their family’s financial needs, while 42% report just managing to get by.
Economic confidence has also dropped, with only 33% of respondents considering the Australian economy secure, down from 53% in the previous quarter. Additionally, 43% of employees express concern over potential job redundancies, up from 28% last quarter, and 48% feel compelled to work harder or longer hours to safeguard their positions.
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Context & Background
Australia has been grappling with a cost-of-living crisis, with inflation rates impacting household expenses such as food, housing, and utilities. In response, the Fair Work Commission raised the national minimum wage by 3.75% in June 2024, bringing it to A$24.10 per hour. Despite these measures, many workers continue to experience financial strain, leading to increased job insecurity and concerns over economic stability.
Additionally, the Australian Council of Trade Unions has highlighted that wage growth remains below the rate of inflation, exacerbating the financial challenges faced by workers. This ongoing disparity underscores the need for comprehensive strategies to address wage stagnation and rising living costs.
In This Story
ELMO Software
ELMO Software is an Australian-based provider of cloud-based human resources and payroll software solutions, offering services such as recruitment, onboarding, learning management, and performance management.
Fair Work Commission
The Fair Work Commission is Australia’s national workplace relations tribunal, responsible for setting minimum wages, resolving disputes, and ensuring compliance with workplace laws.
Australian Council of Trade Unions (ACTU)
The ACTU is the peak body representing Australian workers and their unions, advocating for fair wages, safe working conditions, and social justice.
