Pay rise vs inflation calculator (Australia)
Official inflation in Australia was 4.3% in September 2026. A pay rise has to be at least 4.3% just to keep up with prices.
Real pay change after inflation: -1.2%
Common pay rises against inflation in Australia
| Pay rise | After inflation | Result |
|---|---|---|
| 1% | -3.2% | Falls behind |
| 2% | -2.2% | Falls behind |
| 3% | -1.2% | Falls behind |
| 4% | -0.3% | Falls behind |
| 5% | +0.7% | Beats inflation |
| 7% | +2.6% | Beats inflation |
| 10% | +5.5% | Beats inflation |
How this is calculated
- Real change = (1 + pay rise) ÷ (1 + inflation) − 1, using the latest official 12-month inflation rate. Vernumo does this calculation.
- Your own cost of living depends on what you buy and where you live. Taxes and deductions are not included.
Sources
Australian Bureau of Statistics · September 2026 · Latest value