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Australian Salary Outlook 2026
Salary increase budgets edge lower amid soft labour market; short-term incentives remain key performance rewards
More than 1,300 organisations participated in Mercer’s 2025 Total Remuneration Survey (TRS) Australia. The results reveal that employer hiring intentions have fallen to their lowest point in five years. The weaker labour market could lead to conservative salary increases as overall salary budgets are forecast to decline to 3.5% in 2026.
Merit budgets remained stable in 2025 as employers are continuing to leverage short-term incentives as a key tool to reward performance and boost take-home pay.
Download to discover:
- Salary budgets forecast and salary movements by job families
- Short-term incentive forecasts
- Hot jobs of 2025
- Employers' hiring intentions and employee turnover trends
- Remuneration trends for 2026
Salary trends
Meet the Mercer Total Remuneration Survey team
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