Previous surveys have found that Gen Zers tend to overestimate how much they should be earning. ResumeTemplates.com conducted a survey in September to understand the salary expectations of Gen Zers (ages 18 to 27) who are working full-time and do not have children and found that almost nine in 10 Gen Z workers say they’re underpaid.

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Study highlights:

  • 87% of Gen Z full-time workers feel they are underpaid
  • 1 in 5 Gen Zers believe they should be making $100,000 or more
  • 60% report being unable to afford their basic needs on their current salary
  • Nearly 20% of those who struggle to cover basic needs still spend $500 or more per month on non-essential goods
  • 19% say they would need to earn $100,000 or more to afford their basic needs

9 in 10 Gen Z Say They’re Underpaid

In terms of income, the majority of respondents report earning less than $60,000 annually, with 33% earning under $30,000 and 46% earning between $30,000 and $60,000. Additionally, 17% report earning between $60,000 and $80,000, 7% say they earn between $80,000 and $100,000, and 6% make over $100,000.

According to the survey, 87% of full-time Gen Z workers feel they are underpaid, while 13% believe their pay is fair. Interestingly, all of the 13% who feel their pay is fair earn $30,000 annually. Every Gen Zer earning more than $30,000, including those making six figures, reports feeling underpaid.

Among the Gen Z respondents, 1% have not completed high school, 44% have a high school diploma, 10% hold an associate’s degree, 33% possess a college degree, and 12% have a graduate degree.

“Some Gen Zers might be underpaid, but there are several factors to consider,” says ResumeTemplates’ chief career strategist, Julia Toothacre.

“First, education level. A Gen Zer with a college degree should probably be earning more than $50,000 or $60,000. However, in fields like education or nonprofit work, salaries under $50,000 are common. Second, location is a major factor. In large metro areas, you’re likely to feel underpaid if you earn less than $100,000.

“Finally, the industry and role you choose impacts how much money you can make. For example, in sales, you have more opportunities to make more through commission. Given high inflation over the last few years, I would imagine that some Gen Zers feel underpaid because they are struggling to pay bills or maintain the lifestyle they had just a few years ago.”

1 in 5 say they should be making six figures

Of Gen Z workers who feel they are underpaid, around 9% believe they should be paid up to $40,000 annually, 17% expect between $40,000 and $50,000, 20% want between $50,000 and $70,000, 35% believe they should earn between $70,000 and $100,000, and 20% feel they should be paid over $100,000.

The majority of Gen Z workers have spent no more than four years working full-time. More specifically, 7% of respondents have worked full-time for less than a year, 17% have worked for one to two years, 22% for two to three years, 16% for three to four years, 14% for four to five years, and 23% have worked full-time for more than five years.