Australian salaries are set to increase by 2.8 per cent this year, according to the Australian Institute of Management (AIM)’s annual salary survey.
“Businesses this year forecast they will increase salaries by 2.8 per cent, which is in real terms basically zero, if you take into account inflation,” Sam Bell, general manager of AIM’s corporate services and management told News Limited. This figure has fallen from 4.1 per cent growth in 2012.
The majority of industries are expected to see a salary decrease of between 0.5-1 per cent this year, according to the survey. The worst-hit industries will be construction and engineering, where salaries could fall by 0.65 per cent, as well as government institutions and social services, which may see a decrease of 0.28 per cent.
However, salaries should increase for agriculture workers (0.1 per cent), retail workers (0.17 per cent), and FMCG factory workers (0.3 per cent).
Considering how tight profit margins are in FMCG manufacturing, the predicted salary increase came as a surprise to Bell.
“Just compare working in FMCG manufacturing to, for example, professional services firms like PwC and EY. They invest significantly in the development of their staff in other ways — management and technical abilities, providing them with opportunities that will challenge them across their career. I don’t think you can draw the same line in FMCG manufacturing,” he told News Limited.