IT & finance lead pay rises as salary gaps widen across sectors

New data from the Hays FY25/26 Salary Guide offers insights into shifting salary and workforce trends across Australia, revealing a polarised market with clear winners and sectors facing challenges.

Tech and IT salary growth

The report shows that the Technology and IT sector continues to benefit from strong salary growth, with IT/Tech System Design ranking third among all industries for year-on-year (YoY) pay increases. Over the past year, salaries in this domain have risen by 9.6%.

Organisations in the Technology and IT sector also appear more likely to offer substantial salary raises in FY26. Nine percent of technology employers plan transformational increases of 20% or more, reflecting competition for talent, especially in core roles.

The most in-demand positions identified are Cyber Security Analysts, Architects, Data Analysts/Engineers, Business Analysts, and Cloud/DevOps Engineers.

Despite salary optimism, workforce retention remains a concern, with flexibility, job security, and progression cited as leading priorities among tech professionals. The report found that 64% of technology employees are satisfied with their salary.

Sector winners and salary satisfaction

Broader industry analysis by Hays found Engineering, Finance, and Legal professionals experienced the strongest salary gains and highest satisfaction levels. Thirty-eight percent of engineers feel fairly paid, and 6% believe they are overpaid for their responsibilities. Among Accountants and Auditors, 33% say they are fairly compensated, with 3% indicating they are overpaid.

Construction workers also reported improved sentiment, linked to infrastructure projects and talent shortages that contributed to an 11.7% increase in average salaries. Conversely, dissatisfaction has grown among certain sectors. Architecture and Design professionals have one of the highest intentions to change jobs, with 61% planning a move in the next year. There has been a 46% increase in trade workers describing themselves as "very dissatisfied" with their pay, while dissatisfaction among sales and marketing professionals has risen by 33% due to culture and work-life balance issues.

"When organisations invest in their people, we see stronger employee satisfaction and loyalty. However, when salaries fall short of expectations, there's a real risk of losing talent." said Matthew Dickason, CEO APAC at Hays

Polarised salary growth across industries

The guide lists the top five sectors for annual salary growth as Financial & Insurance Services (12.9%), Construction (11.7%), IT/Tech System Design (9.6%), Legal (7.8%), and Mining (6.9%).

Industries such as Media, Legal, Construction, Technology and IT are among the most likely to offer significant pay increases in the coming year. Despite a high likelihood of salary increases, Media professionals also show elevated levels of dissatisfaction, with 70% feeling discontent and 76% saying they are underpaid.

Other areas - such as Air and Marine Transport (30%) and Education (21%) - are more likely to see minimal salary growth, with Trades and Labour typical of sectors where half of respondents reported no movement in salaries over the preceding 12 months. Within Mining, growth continues but some employers are hesitant to award large pay rises due to operational challenges and an ageing workforce.

"The data reveals clear divides in which industries are paying more and planning to continue doing so. It's no longer enough to cite skills shortages. Unless those shortages are matched with real salary action that aligns with expectations and industry benchmarks, talent will move where the money and opportunity are," said Dickason.

Employee satisfaction and generational differences

Executives and senior leaders report the highest satisfaction levels, with 75% of directors and 72% of C-suite leaders expressing contentment with their pay. Mid-level managers also report relatively strong satisfaction at 66%.

There is, however, marked dissatisfaction among early-career professionals, particularly those aged 25–39. According to the report, 49% of 25–29-year-olds and 42% of 30–39-year-olds feel they are significantly underpaid. Graduate architects, designers, and planners report the highest dissatisfaction of any cohort, with 70% stating they are underpaid.

Those earning under AUD $100,000 are more likely to feel undervalued, with 12% saying they are "grossly underpaid" for their work.

"A point of concern is that younger and lower-income professionals are signalling dissatisfaction. If not addressed, this risks future workforce attrition and weak succession pipelines. This is especially problematic when we consider the value that younger or early-career professionals bring in terms of new and emerging skills," Dickason added.

Gender disparities and salary distribution by state

The report highlights ongoing gender inequality, with women earning on average 10% less than men. The pay gap widens at higher income levels, where men outnumber women two-to-one in roles above AUD $200,000.

Queensland posted the strongest average salary growth nationally at 5.6%, but the average salary remains below the national mark at AUD $139,000. While mining and energy salaries helped Western Australia retain the highest average salary (AUD $147,200) and the largest proportion of earners above AUD $250,000 (8%), growth rates in New South Wales, Victoria, South Australia, and Tasmania varied, with most other states recording average salary increases around the national benchmark of 5.1%.

The ACT and Northern Territory recorded the lowest average increases, with salary growth of 3.7% and 3.2% respectively, and a higher proportion of workers earning less than AUD $100,000.

"State-level salary movements are primarily being driven by cost-of-living adjustments, interstate competition for talent and economic stimulus. However, without regional pay strategies and workforce renewal, some states risk falling further behind," added Dickason.

Outlook for FY26

Hiring confidence remains strong in key areas such as Accommodation and Food Services, Energy and Renewables, Engineering, Finance and Insurance, and Healthcare, especially among organisations with workforces between 50 and 250 people. However, sectors experiencing pay stagnation, such as Agriculture, Construction, and Information Media and Telecommunications, face elevated staff turnover risk.

"The labour market is no longer forgiving. Employers who act now to benchmark roles, align pay with performance and benefits with expectations, and reward potential will win. Those who don't will lose their best people to hungrier competitors and more giving industries."