Auckland, a vibrant city known for its exceptional quality of life, harbours a competitive job market with abundant opportunities. But what constitutes a good salary in Auckland? In this comprehensive guide, I’ll navigate the complexities of living costs, job market dynamics, and industry-specific salary ranges to help you better understand what it takes to live comfortably with a good salary in Auckland in 2023.
Short Summary
- A good salary in Auckland is dependent on various factors such as cost of living, job market opportunities and overall expenses.
- The average annual salary in Auckland is 71,000 NZD, which is 11% higher than the national average.
- Strategies for earning a higher salary include negotiating offers, upskilling/professional development, networking & job searching and maximising employee benefits.
Understanding a Good Salary in Auckland
When assessing what constitutes a good salary in Auckland, it’s important to consider the cost of living and the job market landscape. With an income exceeding 70,000 NZD generally considered satisfactory, one must weigh various factors such as housing, transportation, and other expenses to paint a clearer picture of what it takes to live comfortably in this city.
A good salary in Auckland is relative to the cost of living, job market opportunities, and other factors. Salaries in New Zealand may not be as high as those in the US or UK. However, the cost of living is comparatively lower too. This helps to balance out the difference in overall costs. Understanding the dynamics of the job market and the industries offering high remuneration is essential to determining a good salary that allows a decent life in Auckland.
In 2022, Auckland’s median income was 49,419 NZD, higher than the national average of 44,124 NZD. Earning over 70,000 NZD places you above average, comfortably covering rent, groceries, dining, insurance, travel, and savings
Cost of Living in Auckland
The cost of living in Auckland is undeniably high compared to other regions in New Zealand. Rent for a two-bedroom house in more economical areas typically hovers around 600 NZD per week. Monthly utility expenses for a two-bedroom residence average between 200 and 300 NZD, while the cost of the internet ranges from 70 to 100 NZD depending on the provider.
In addition to housing, other living expenses to consider include transportation and food. Auckland’s comprehensive public transport system comprises ferries, trains, and buses, with a monthly ticket costing approximately 215 NZD. Petrol prices are about 2.75 NZD per litre for 95. Factoring in these costs is crucial when determining if a salary is sufficient to live comfortably in Auckland.
Job Market and Opportunities
The job market in Auckland is highly competitive, offering a wide array of industries in demand and numerous job vacancies. However, a lack of skilled workers in certain sectors can make it challenging to secure employment within those areas. Data reveals that industries such as Information and Communication Technology, Manufacturing Transport and Logistics, and Hospitality and Tourism have seen a significant increase in pay for certain roles. This is especially encouraging news for professionals working in these sectors.
Understanding the nature of the job market and the opportunities available in different sectors is crucial for job seekers in Auckland. By staying informed about the latest trends and industry demands, you can better position yourself to secure a good salary that aligns with your skills and experience.
Average Annual Salary in Auckland
The average annual salary in Auckland is 72,000 NZD, but this figure may fluctuate depending on the industry and employer. Factors such as profession, experience, and education play a significant role in determining salary. Auckland’s average salary is 11% higher than the national average, reflecting the city’s competitive job market and higher living costs.
Explore the evolution of average household income in Auckland over the years and see how it stacks up against the national annual average household income across New Zealand.
Minimum Wage and Minimum Salary
As of April 1, 2023, the minimum wage in Auckland is 22.70 NZD per hour. This rate plays a crucial role in ensuring that individuals receive fair compensation for their work, regardless of their experience or industry. The minimum wage is a key factor to consider when assessing the overall salary landscape in Auckland and New Zealand as a whole.
The minimum salary is 39,210.80 NZD. It is worth noting that there is a 5% average discrepancy between the salary of male and female employees in New Zealand, and the average salary increase in one year (12 months) in the country is 6%.
Salary Ranges by Industry
Salary ranges by industry in Auckland vary depending on the industry, job role, and experience of the individual. For instance, the salary range for a Construction Manager in Auckland typically falls between 90,000 and 150,000 NZD annually, while the salary range for an Information Technology Manager generally lies between 80,000 and 130,000 NZD annually.
Understanding the salary ranges by industry is paramount for job seekers and professionals looking to advance in their careers. By researching the salary range for a particular job in a specific industry, you can ensure that you are being offered a fair salary that aligns with your skills, experience, and the current job market in Auckland.
| Occupation | Average Annual Salary (NZD) |
| Accounting | $82,000 |
| Architecture | $81,000 |
| Construction & roading | $72,000 |
| HR & recruitment | $83,000 |
| IT | $124,000 |
| Office & administration | $57,000 |
| Property | $80,000 |
| Retail | $54,000 |
| Customer service | $53,000 |
| Sales | $71,000 |
Source: https://www.newzealandshores.com/new-zealand-job-search/salaries-new-zealand/
Factors Influencing Salaries in Auckland
Several factors influence salaries in Auckland, including experience, education, skill level, company size, and sector. Experience is the primary determinant of salary, with individuals in their 30s and 40s typically prioritising leveraging their abilities and maximising their earnings.
Education and skill level also have a considerable influence on salaries in Auckland, as employers are willing to compensate more for personnel with advanced qualifications and more specific skills. Company size and sector may also affect salaries, as larger companies typically offer higher wages than smaller ones, and certain sectors may offer higher salaries than others.
Experience and Career Progression
Experience and career progression play a significant role in determining salary in Auckland. On average, a person’s experience increases their salary two-fold in 10 years. This is known as the 10-year mark for salary increases. Employees between two to five years of experience usually earn 32% more than entry-level and junior workers. This is true for all industries and fields. Those individuals with more than five years of experience tend to earn more. On average, they make 36% more than those who are relatively less experienced with fewer than five years.
Considering job titles when assessing salary can provide more precise appraisals. By understanding the impact of experience and career progression on salary, job seekers and professionals in Auckland can better position themselves for higher earnings and career advancement.
Education and Skill Level
In Auckland, there is a strong correlation between education level and salary. Having a certificate or diploma can increase earnings by an average of 17%. Those who have only completed high school tend to earn less. Those with a Bachelor’s Degree earn 24% more than those with a certificate or diploma, professionals with a Master’s Degree earn 29% more than those with a Bachelor’s Degree, and those with a PhD earn an average of 23% more than those with a Master’s Degree.
Pursuing higher education can be financially beneficial, as individuals who change jobs after acquiring a higher degree tend to receive a salary increase of roughly 10% more than the average annual raise. This highlights the importance of investing in education and skill development to increase earning potential in Auckland’s competitive job market.
Company Size and Sector
Company size and sector can considerably affect salaries in Auckland. Larger companies generally offer higher salaries than smaller ones, and certain sectors may provide higher salaries than others. Examples of company sizes include small businesses, medium-sized businesses, and large corporations, while sectors encompass technology, finance, healthcare, and education.
Understanding the influence of company size and sector on salary is crucial when evaluating job opportunities in Auckland. By staying informed about industry trends and company dynamics, job seekers and professionals can better target their efforts in securing higher-paying roles that align with their skills and experience.
Strategies for Earning a Higher Salary in Auckland
To secure a higher salary in Auckland, several strategies can be employed, such as negotiating salary offers, upskilling and professional development, and networking and job searching. By actively seeking opportunities for growth and improvement, professionals in Auckland can increase their earning potential and enhance their career prospects.
Understanding your worth in the job market and honing relevant skills is vital to attaining a higher salary in Auckland. Implementing these strategies will not only benefit your financial situation, but also contribute to personal and professional growth in the long run.
Negotiating Salary Offers
Successfully negotiating salary offers in Auckland involves researching industry standards and ascertaining one’s worth. This can be achieved by consulting salary surveys, conversing with recruiters, and examining job advertisements to determine the remuneration for similar roles and skills.
When engaging in salary negotiations, it’s important to approach the topic with a professional manner, present your case in an articulate manner, be candid, and request a higher amount than what you desire. By effectively negotiating salary offers, you can ensure that you receive fair compensation for your skills, experience, and the value you bring to your employer.
Upskilling and Professional Development
Potential strategies for professional growth in Auckland include enrolling in short courses through the University of Auckland Business’s Executive and Professional Development, attending professional development workshops across the nation, and establishing objectives for oneself. Concentrating on goals, managing obstacles and diversions, making learning a custom, learning in a manner that suits one best, and working with others are also recommended approaches.
The University of Auckland Business’s Executive and Professional Development offers a selection of courses in leadership and management, project management, finance and accounting, and human resources. Professional development workshops around the country cover various subjects such as communication, problem-solving, team building, and time management.
By engaging in upskilling and professional development, you can increase your earning potential and advance your career in Auckland.
Networking and Job Searching
Attending networking events in Auckland and introducing oneself politely with relevant questions may prove to be an effective strategy for job searching. Networking events can be beneficial in terms of connecting with potential employers, gaining insight into job opportunities, and developing relationships with individuals in the sector. Additionally, utilising online job boards can be an effective method to locate job postings, investigate companies, and submit applications swiftly and conveniently.
By networking and actively searching for job opportunities, you can better position yourself to secure a higher salary in Auckland’s competitive job market. Staying updated on industry trends and building connections with professionals in your field can be invaluable in advancing your career and increasing your earnings.
Living Comfortably in Auckland on an Average Salary
Achieving a comfortable lifestyle in Auckland on an average salary requires careful planning and financial management. Budgeting and finding ways to economise are essential strategies for living within your means while still enjoying a high quality of life in this vibrant city.
Some recommended approaches for living comfortably on an average salary in Auckland include budgeting and financial planning, saving and investing, and maximising employee benefits. By implementing these strategies, you can ensure that your income is sufficient to cover all your living expenses and contribute to a fulfilling life in Auckland.
Budgeting and Financial Planning
Strategies for budgeting and financial planning in Auckland may include consulting with financial planners or advisors, utilising free budgeting advice from trained financial mentors, formulating a budget by enumerating all sources of income and expenses, and acquiring new skills in managing money, savings, and debt reduction.
Creating a budget involves cataloguing all forms of income and expenses, including wages, investments, rent, utilities, groceries, and other costs. By establishing a budget and adhering to it, you can ascertain the amount of money available for savings and other financial goals, ultimately leading to a more comfortable and secure life in Auckland.
Here’s a breakdown of the typical distribution of your income for a single person living in Auckland:
| Expense | Average Cost (NZD) |
| Housing | 2,400 |
| Groceries | 1,100 |
| Transport | 450 |
| Utilities | 190 |
For a family of four, the financial dynamics change considerably given the added expenses. To ensure a comfortable lifestyle, it’s recommended that the combined monthly income of the couple, after tax, be no less than 7,500 NZD. Here is a potential allocation of these funds:
| Expense | Average Cost (NZD) |
| Housing | 3,000 |
| Groceries | 1,500 |
| Transport | 500 |
| Utilities | 250 |
Saving and Investing
The process of saving and investing in Auckland involves setting aside money for future use and investing it to generate returns. It is essential to take into account the risks associated with different types of investments and to seek professional advice. Some prevalent investment strategies in Auckland include investing in property, term deposits, bonds, shares, managed funds, and KiwiSaver.
Diversifying investments is crucial in managing risk and ensuring financial stability. When diversifying, it’s important to assess the risks involved with various types of investments and obtain professional counsel. By saving and investing, you can build a solid financial foundation, allowing you to live comfortably in Auckland on an average salary.
Maximising Employee Benefits
In Auckland, employee benefits such as KiwiSaver, health insurance, and other workplace benefits are available. Maximising these benefits can assist employees in saving money, augmenting their job satisfaction, and providing them with a sense of security.
One approach to optimising employee benefits might be providing a KiwiSaver scheme. By taking advantage of employee benefits and negotiating salary offers, you can augment your salary and improve your overall financial situation, ultimately leading to a more comfortable life in Auckland on an average salary.
Summary
In conclusion, understanding what constitutes a good salary in Auckland requires considering factors such as living costs, job market opportunities, and industry-specific salary ranges. By employing strategies like negotiating salary offers, upskilling and professional development, networking and job searching, you can increase your earning potential and live comfortably in Auckland on an average salary. Remember, the key to financial success in this vibrant city is being proactive, staying informed, and making smart decisions that align with your goals and aspirations.
Frequently Asked Questions
What is considered high income in NZ?
High income in New Zealand is generally considered to be over 70,000 NZD per year. The highest earners in the country, however, have net wealth of at least $7.59 million – with the top 1% needing a minimum of $3.866m.
Therefore, while most New Zealanders can enjoy a good quality of life on an average salary, truly high incomes in the country are reserved for a select few.
What is the middle salary in Auckland?
The median salary in Auckland last year (2022) was about 71,000 NZD. This means that half of the people in Auckland earn more than this figure and the other half earn less.
Thus, the middle salary for the city is around 71,000 NZD.
How many people in NZ earn over 100k?
According to the most recent census data, roughly 4.6% of New Zealanders earn over $100,000 per year, which equates to approximately 170,000 people.
