According to a new Asia-Pacific survey conducted by Hays, while 35 per cent of Australians expect a pay increase of more than 6 per cent, most employers only intend to increase salaries by less than 3 per cent.

The study also showed that 33 per cent of employees expect an increase of between 3 and 6 per cent, while 32 per cent expect a salary increase of less than 3 per cent.

In contrast, just 6 per cent of employers intend to offer increases above 6 per cent; 44 per cent intend to increase salaries by between 3 and 6 per cent; and 43 per cent intend to increase salaries by less than 3 per cent.

"In today's market, many employees have higher expectations than their employers when it comes to their next pay rise," said Hays director Nick Deligiannis. "But employers won't be swayed by these expectations. Instead of offering widespread salary increases, many employers are choosing to review employee benefits to help them attract and retain staff."

Deligiannis added that employers are currently more likely to discuss potential career paths with their highest achievers and to offer training and development.

"Work/life balance improvements are also being used as alternatives to large salary increases," he said.