Only half of New Zealand workers reported receiving a pay increase in the past year, according to recent data from the job site Seek, which also highlighted notable differences across industries and demographic groups. The findings come amid evolving economic conditions, prompting caution among employers regarding wage growth.

The survey showed that employees in industrial roles were most likely to have secured a pay rise, with 57% reporting an increase. Professional services followed closely with 53%, and the technology sector reported a 52% rate of pay increases. Seek’s country manager, Rob Clark, attributed the higher incidence of raises in professional services and technology to performance-based assessments and market benchmarking.

Company-wide pay rises—where employers adjust salaries broadly rather than on an individual basis—were the most common method for wage increases, especially within public sector, retail, hospitality, and sports industries. In contrast, construction and technology sectors saw fewer general pay bumps; instead, nearly half of workers in these industries received increases tied directly to performance.

Despite half of all respondents reporting a pay rise, the majority—73%—noted that their increase was 5% or less. Fewer than half of those surveyed expressed satisfaction with their current salary levels, while approximately two-thirds felt uncomfortable initiating conversations about pay raises.

Clark observed that the current economic outlook has led both employers and employees to approach salary discussions with caution. "If you’d asked a month or two ago, you’d probably be a little more confident because consumer and business confidence was improving. I think that’s come to a head in the last month or so," he said, suggesting that a conservative approach to pay increases might persist as financial pressures mount.

Demographic analysis revealed generational disparities in pay rise likelihood and comfort with requesting raises. Millennials were the most likely to have received a pay rise in the last 12 months, at 54%, followed by Gen Z at 48%, and Gen X at 45%. Millennials also topped the list for initiating pay rise requests, yet both they and Gen Z reported less confidence in these negotiations compared to Gen X. Clark explained this trend as reflective of early-stage career challenges faced by younger workers, including financial constraints such as mortgages and family expenses.

Clark emphasized the importance of open dialogue between employees and employers regarding compensation, even when immediate pay increases may not be feasible. He pointed out that such conversations help employees understand organizational decisions and feel heard, which can benefit the overall workplace dynamic. Additionally, he encouraged workers to consider non-monetary benefits as part of their compensation package in times when salary growth may be limited.