We should all be paid fairly for the work we do. If you haven’t had a pay increase in a while, or your colleagues are paid more than you, it could be a sign you are underpaid.
So what are the signs you are underpaid and how can you address the issue?
How to tell if you are underpaid
Your responsibilities have increased but your pay is the same
Maybe you have taken on extra duties or expanded your skill set, but not received a corresponding pay increase. If you are taking on more responsibilities that outlined in your original job description, you are more than entitled to ask for a pay rise.
Your pay rises are lower than inflation or market standards
Has your salary been adjusted to account for inflation? Even if you have received small increases in pay over time, these may not be enough to keep up with inflation. Inflation and shifts in the job market can erode your earning power over time.
Similar roles in your industry are paid more or have better conditions.
Are colleagues or new hires earning more than you for performing the same work? If so, it might be time to take a look at your pay. Maybe your colleagues get more time off or receive better benefits than you. This could also be a sign that you are underpaid, even if you are earning the same amount as your colleagues.
No regular performance reviews or pay rises
Regular performance reviews provide a great opportunity to discuss your career growth and future goals with your employer.
Without regular performance reviews, you miss out on professional growth opportunities and the formal process to justify pay rises.
If you have been with your employer for years and never received a pay rise, chances are you are underpaid. If you have never negotiated a higher salary with your employer, you are also likely to be underpaid.
Your pay doesn’t align with your skills, experience or education
When you were hired, your pay likely took into account your skills, experience and education at that time. However, as you develop new skills and gain more experience, your earnings should reflect this.
What to do if you think you are underpaid
Research market salaries
To find out if you’re underpaid, it’s essential to know your worth. Review salary data for your location and industry. What is the average salary for someone in your position with your level of experience? If it is higher than your current salary, there is a good chance you are underpaid. You can use an online salary calculator to assist with this.
Prepare your case with evidence
Use evidence to make your claim for a pay rise. Have you saved your employer money or brought in additional revenue?
Schedule a formal meeting with supervisor
When scheduling a meeting with your supervisor, choose a time when they’re not stressed or overwhelmed. Present your evidence to justify a pay rise—simply asking for more money won’t be enough
Be open to negotiation
Maybe your employer can’t agree to a pay rise right now, but can offer you extra time off, flexible working arrangements or professional development opportunities.
Have a back up plan
If your employer cannot meet your expectations, it might be time to explore other opportunities. Remember, navigating the employment market and negotiating pay and conditions can be challenging. Don’t be afraid to seek expert advice if required.
Are you uncertain where your career is heading next? Public Service Resumes can help. We are pleased to offer various services including expert career coaching and interview skill training.
Article References
Angelos, T (23 November 2024) ‘How to know if you’re not paid enough (and how to fix it)‘, Sydney Morning Herald, accessed 20 January 2025.
Indeed (15 August 2024) ‘20 Signs You’re Underpaid and What To Do About It’, Indeed, accessed 20 January 2025.