Inflation and increasing responsibilities are prompting employee demands for higher wages, but employees are finding it more challenging to negotiate a pay rise, according to the Robert Half 2025 Salary Guide.

The global staffing firm found that 72% of workers say it is now more difficult to negotiate a salary increase compared to the previous year. Only 23% think it is less difficult.

Robert Half’s report also found that 49% of employers state that candidates are more demanding when it comes to salary compared to last year.

“Our 2025 Salary Guide paints a picture of the complex salary dynamics that will shape the job market this year,” Nicole Gorton, director at Robert Half, said in a press release.

“The current work environment faces a salary dilemma,” Gorton said. “Employers continue to face budget constraints and focus on cost management while the demand for higher pay has become louder from employees who haven’t had a significant pay rise during a turbulent few years despite their hard work and their need to feel financially stable.”

The top reasons employees cite for a pay increase:

• I have consistently exceeded my performance goals, 36%
• The cost of living has increased and my salary needs to keep pace, 32%
• I have taken on new projects or a larger workload, 32%
• I have acquired new skills or qualifications that are valuable to my role, 29%
• I am seeking a promotion to a higher-paying position, 27%
• I have not received a salary increase in a long time, 15%
• I am not being compensated fairly for my work, 9%
• I expect a raise every year, 9%

Robert Half also asked employers about reasons to raise salaries. The responses are:

• On merit; employees meet and exceed performance goals, 30%
• All employees are evaluated on similar criteria to determine if a raise is applicable, 26%
• To stay competitive if current salary is not aligned with market or skills in demand, 19%
• Retention, as keeping people is valued over replacing them, 18%
• Employee tenure, 6%

Robert Half’s data is based on a survey of 1,000 full-time office workers in Australia and 500 employees in Australia.