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How to ask for an inflation pay rise—and how much to ask for

When it comes to negotiating inflation pay rises, for a long time there’s been a simple rule: don’t mention inflation.

The reasoning has been that, basically, bosses don’t care how you’re doing financially, and whether or not you can make ends meet.

Pay rise negotiations should be about what you bring to the organization, and why they need you, rather than what you need.

But with inflation now at its highest rate since 1990, and most Australians worse off, some experts are tweaking their advice.

Many workers are sharing stories of asking their boss for a pay rise.

Emma, ​​29, a property manager in Melbourne, recently tried her luck.

“I told them that with the cost of everything going up, my salary wasn’t viable anymore,” she told hacker.

“I didn’t want to leave, but I was willing to go somewhere closer to home that offered a bit more.”

And it worked, after a few days her employer agreed to a 7 per cent pay rise.

Amy, 24, a designer in regional NSW, had a very different experience. She also brought up inflation with her boss from her — and got knocked back.

“They said they couldn’t justify paying me more,” she said.

So, how can you go about having the chat?

How much do you ask for?

The annual inflation rate in Australia is currently 6.1 per cent, meaning prices have risen this much over the last 12 months.

If your wage hasn’t been bumped up in that time, you’re effectively earning less than you were 12 months ago.

So if you’ve made $50,000 in the past year, you’re $3,000 worse off.