How many hours you need to work to cover the cost of living

New research has shown the huge amount of hours Aussies need to work just to pay for their living expenses.

The average Aussie has to work 28 hours each week – the equivalent of 75 per cent of their work week – just to cover basic living expenses, new research has found.

For the average employee earning a $69,400 salary – or $33.68 per hour in post-tax income – simply paying for petrol, groceries and their mortgage costs 28 hours of work each week, the equivalent to 75 per cent of the typical 38-hour work week.

Meanwhile, the average weekly rent of $522 will set tenants back 15.5 hours of work, but mortgage repayments are even pricier, Finder’s research showed.

The average home loan costs $647 a week in repayments, which is equivalent to 19.2 hours’ worth of work.

Childcare costs come in a close second place for requiring the most work to cover the cost of $565 per week on average.

That’s equivalent to a staggering 16.8 hours of work – nearly half the typical work week.

For the typical grocery bill, it costs five hours of work, while a single tank of petrol will set workers back 3.9 hours of their work week.

Graham Cooke, Finder’s head of consumer research Graham Cooke, said the cost of living crunch means many Australians have very little leftover after paying their bills.

“Inflation is climbing and Australians are feeling it when they go to fill up their petrol tank or do their weekly supermarket shop,” he said.

“The energy crisis is also driving up energy and gas prices, and rising interest rates mean that many will start to see their home loan repayments climb very soon by upwards of $, 5000 over the course of a year.

“These growing expenses are cutting into households’ discretionary income, meaning that more of their earnings are being spent on necessities, and they have less leftover for going out or shopping online.”

RBA Governor Phillip Lowe has predicted inflation will reach 7 per cent by the end of 2022.

Some of the steepest increases include petrol rising 32 per cent year-on-year, while beef has jumped 12 per cent and vegetables are up 13 per cent.

“There are only so many hours employees can work until they need to start digging into their savings,” Mr Cooke added.

“Single parents may feel the crunch the most because they need to fork out for childcare or school fees without that extra income stream from their partner.”

Petrol, beef and vegetables have jumped a lot in price.

He recommended budgeting to navigate through this period of rising expenses.

“Australians went through a few months of spending more than usual after Covid-19 lockdowns were removed, but now they’re tightening their purse strings," he said.

“This is the perfect time to revisit your household budget, or start a budget if you don’t already have one.

“Wages should generally grow at the same rate as the general economy but they haven’t done so for several years, so if you haven’t asked for a pay rise yet, it might be time.”