Are you getting a pay rise in 2013?

New research predicts the average Australian worker will receive a pay rise of around 4.2 per cent in 2013.

While the pay bump looks reasonable next to the current level of inflation which is currently sitting around 3 per cent, it looks conservative when compared with the 4.6 per cent pay increase that was predicted for 2012.

The study from consulting firm Aon Hewitt expects that performance will be the main factor when companies consider pay decisions next year. More than 95 per cent of organisations said that performance was a major influence on their pay decision process.

"Individuals that are actually contributing to overall success are more likely to get a pay rise," Rachael Finnemore from Aon Hewitt told news.

The report also forecasts that companies will be using more bonuses in 2013 to recognise the work of high achievers, with some 44 per cent of employers planning to look at the way bonuses are utilised.

A similar amount of employees mentioned that they would review how high performers were rewarded and motivated in 2013.

Who’s getting the biggest pay rises in 2013?

The research predicts that those working in the energy, power and gas sectors would be receiving the highest pay increases next year.

Those in the struggling retail sector however wouldn’t be so fortunate with workers in the sector expected to receive some of the lowest pay increases next year.

"The retail sector is doing a large amount of discounting in order to bring people through the door," Ms Finnemore said.

Manufacturing industries predicted pay increases
Above average
Energy (power/oil/gas) 6.0 per cent
Automotive 4.9 per cent
Industrial engineering 4.4 per cent
Life science 4.3 per cent

Average
Mining/milling/smelting 4.2 per cent

Below average
Chemical 4.0 per cent
Consumer products 3.8 per cent

Service industries predicted pay increases
Above average
Construction engineering 5.0 per cent
Health care/medical services 4.8 per cent
Banking/finance 4.4 per cent
Entertainment/communications/publication 4.3 per cent per cent

Average
IT enabled service 4.2 per cent
Professional services (advertising, PR, accounting, consulting, legal) 4.2 per cent

Below average
Hospitality/restaurant/travel 4.0 per cent
Not for profit 3.5 per cent
Retail 3.7 per cent