Auckland, New Zealand – 14/04/2026 – New salary data shows that wages are rising, but most New Zealand workers feel no richer. This is revealing a widening disconnect between employer intentions and employee experience, exposing what recruitment experts are calling “The Salary Growth Illusion.”
Research from Robert Walters shows that at the start of 2026, 57% of professionals had received a pay rise from 2025. Yet, 81% say their pay still does not keep up with the rising cost of living. Shockingly, only 17% of employers acknowledge this gap – showing a significant disconnect between salary growth and actual salary growth.
Shay Peters, Robert Walters Australia and New Zealand CEO says, “Salary increases are happening, but for most people, they’re being absorbed before they’re even felt. On paper, it looks like progress, but in reality, employees are standing still. That disconnect is what we’re calling the salary growth illusion, and it’s starting to materially impact how people feel about their employer.”
Many New Zealanders are feeling the squeeze from higher prices across essentials. Annual consumer price inflation sat around 3.1% in the year to December 2025, slightly above the Reserve Bank’s target range, meaning wages would have needed to rise by at least this amount just to maintain purchasing power.
Last year, most pay rises sat between 2.5-5%, translating to just $2,500-$5,000 extra per year on a $100,000 salary. This is insufficient to offset rising expenses.
Mid-senior roles see biggest increases, interns left behind
- 67% of businesses plan to increase salaries in 2026, while 56% of employees expect a pay rise.
- Pay rises are more likely at associate and mid-senior levels (77-79% expected to get one), while interns have a 53% chance.
- Recruiters warn this is creating lasting damage that will prove detrimental over time.
“If organisations allow this gap to persist, the consequences go beyond today’s workforce. You risk disengaging early-career professionals at a critical stage, weakening your long-term talent pipeline and creating retention challenges that compound over time.”
Tech, finance and legal leaders drive above‑average pay growth in New Zealand
While overall salary increases remain moderate across New Zealand, select roles and cities are breaking away from the pack. Auckland’s senior technology and finance leaders recorded some of the sharpest rises, with AI engineers, DevOps specialists and senior data professionals seeing increases of up to $25-30k. In financial services, Auckland-based General Managers of Finance and Commercial Managers rose by as much as $30-50k, while Christchurch legal leaders stood out with General Counsel salaries jumping up to $30k year on year.
“What we’re seeing in pockets of the market is a very deliberate premium being placed on capability. Where skills are scarce and roles are business-critical, employers are willing to stretch. It reinforces a clear divide between those with in-demand expertise and those in more saturated areas.” says Peters.
Auckland leads salary momentum, with selective gains in Wellington and Christchurch
Auckland remains the clear centre of salary momentum in New Zealand, particularly across technology, executive finance and senior leadership roles. Wellington saw more selective growth, concentrated in cyber security and transformation roles, while Christchurch experienced fewer increases overall but delivered some of the largest single jumps in senior legal and finance positions.
The “Salary Growth Illusion” threatens retention and engagement
The perception gap has major implications for retention, engagement, and recruitment. With employees increasingly aware of the mismatch between their pay and the cost of living, businesses risk losing talent if they do not bridge this divide and with 53% of employees looking to move roles this year, retention is a big threat to employers.
“Addressing this isn’t simply a question of increasing salaries. It’s about aligning reward strategies with real-world pressures and being far more transparent in how those decisions are made. Employees don’t just want more, they want to understand that their employer genuinely gets it” Peters concludes.
About Robert Walters
Robert Walters is a global talent solutions business, partnering with organisations across the world to deliver recruitment, recruitment outsourcing and advisory services. Established in 1985, the business has built a strong international presence, operating in over 30 countries.
In New Zealand, Robert Walters works with a broad range of organisations, supporting the recruitment of permanent, contract and temporary roles across disciplines including finance, technology, human resources, legal, business support and more.
About the research
Findings come from the 2026 Robert Walters Salary Guide which surveyed over 5,500 white collar professionals.
