She's on the Money host Victoria Devine explains why Aussies need a payrise now trends now
An Australian finance expert says employers should be giving their workers a seven per cent pay rise due to inflation.
Founder and host of She's on the Money, Victoria Devine discussed pay rises in a podcast on May 11, claiming businesses should increase their worker's annual salaries in line with inflation.
The award-winning retired financial adviser discussed the week's community dilemma, which was submitted by a listener who received a pay increase 'not nearly anywhere close to inflation'.
The listener explained her employer was not open to negotiation and was told to be grateful for her pay increase despite the company achieving 170 per cent of its sales targets.
Ms Devine said an employee is actually getting a 'pay cut' if their increase does not rise with inflation.
Founder and host of She's on the Money Victoria Devine (pictured) discussed pay rises in a podcast claiming businesses should increase their worker's annual salary in line with inflation
'If you're not getting a seven per cent pay rise this year, you're actually financially going backwards,' Ms Devine said.
'If your pay rise does not align with inflation, you are actually getting a pay cut, full stop, end of story.
'Your lifestyle is going down while my back pocket is being lined. It's about what's fair and how the world works.'
Ms Devine said inflation happens every year in a healthy economy, and as a business owner, she factors inflation into pay rises automatically.
She added businesses facing hard times after struggling during the Covid-19 pandemic owe their employees a discussion if they cannot increase their wages in line with inflation.
'From my perspective as a business owner, this is a cost of business. It's a part of my mapping and planning. I know that inflation will come into it,' Ms Devine said.
'Did I know that inflation would be at 7.1 per cent this year? Absolutely I didn't.
'In my head, because inflation happens every single year in a healthy economy, I have always made sure to have the buffer to increase my employees' salaries in line with inflation.
'I do think it can be a struggle for some employers but for me that is a cost of doing business. That is a cost of keeping the bare minimum.'
Ms Devine said she believes in 'walking the walk' and
