Am I Underpaid? How to Find Out & What to Do About It

What You’ll Learn

You’ve worked hard, gained experience, and taken on new responsibilities, but is your paycheck keeping up? If you’ve wondered, “Am I underpaid at work?” you’re not alone.

Salaries vary by employer, location, and experience, making it hard to know if you’re earning what you’re worth. We’ll break down the warning signs of underpayment, ways to compare your salary with market rates, and practical ways to advocate for fair compensation.

Want to see how your pay compares? Use Monster’s Salary Calculator to check average salaries and pay ranges for your job title and location.

What Does It Mean to Be Underpaid?

Being underpaid means earning less than the market rate for your job, experience, skills, and location.

In other words, if your salary or hourly wage falls below what employers generally pay workers with similar qualifications and responsibilities, you’re underpaid. And while earning less than a coworker doesn’t automatically mean you’re underpaid, significant pay differences for comparable work may be worth investigating.

Underpaid vs Paid Illegally: What’s the Difference?

It’s also important to distinguish between being underpaid and being paid illegally. Earning less than the market rate isn’t necessarily illegal, but paying employees less than the applicable minimum wage, failing to pay legally required overtime, and unlawful pay discrimination can violate federal or state law.

For more information about your rights, consult your state labor department or the U.S. Equal Employment Opportunity Commission (EEOC).

What Are the Signs You’re Underpaid?

Signs you’re underpaid at work include earning less than new hires, seeing higher salaries in similar job postings, taking on more responsibilities without a raise, and receiving pay increases that don’t keep up with inflation.

Here are 10 common warning signs that you might be earning less than you’re worth:

How Can You Find Out If You’re Underpaid?

To find out whether you’re underpaid, compare your current salary or hourly wage with market rates for similar roles, accounting for your experience, skills, responsibilities, and location.

Here are five ways to determine if you’re being paid fairly:

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  Use a salary calculator. Tools like Monster’s Salary Calculator can help you estimate the typical pay range for your job title and location. Compare the results to your current compensation to identify potential gaps.

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  Check similar job postings with pay ranges. Compare listings for roles with similar responsibilities, qualifications, and locations, and look for consistent salary differences rather than relying on a single posting. In states and localities with pay transparency laws, employers may be required to disclose salary ranges in job postings.

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  Look up government salary data. The U.S. Bureau of Labor Statistics (BLS) publishes wage estimates by occupation and geographic area. Use this data to compare your earnings against broader industry benchmarks.

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  Talk to recruiters and industry peers. Recruiters can offer insight into current salary expectations, while professionals in your field can share what employers are paying for similar skills and experience.

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  Talk to coworkers about pay. Comparing compensation with colleagues in similar roles and responsibilities can reveal pay disparities. Remember to account for differences in experience, tenure, and qualifications.

How to Talk to Coworkers About Pay

You can talk to coworkers about your salary, and most private-sector employees have the legal right to discuss wages under the National Labor Relations Act (NLRA). Employers generally can’t prohibit protected pay discussions or retaliate against employees for having them, although some workers aren’t covered by the law.

If you’re comfortable discussing compensation with a colleague, here are a few tips for approaching the conversation:

Am I Underpaid? A Quick Self-Check

Answer these five yes-or-no questions to check for signs that you may be underpaid:

• Do comparable job postings consistently offer more than you currently earn?
• Do new hires in similar roles earn more than you?
• Have your responsibilities increased without a corresponding raise?
• Have your raises fallen behind inflation or market salary growth?
• Have you gone more than a year without a compensation review?

Several “yes” answers are a reason to investigate your pay, not proof that you’re underpaid. Compare multiple salary sources before deciding on next steps.

Why Companies Underpay Employees

Companies may underpay employees because of outdated salary benchmarks, salary compression, budget constraints, or pay bias. In some cases, compensation simply isn’t adjusted as employees gain experience, take on new responsibilities, or as market rates rise.

Common reasons for underpayment include:

These factors can help explain why pay falls behind the market, but they don’t automatically establish that an employer has acted unlawfully. If you suspect discrimination or a wage violation, review your rights and the applicable laws.

What Should You Do If You’re Underpaid?

If you’re underpaid at work, start by documenting your contributions and researching market salaries. From there, you can negotiate a raise, explore other compensation options, or look for a higher-paying job. If your employer is violating wage laws, you may also have grounds to file a complaint.

• Step 1:

  Gather Evidence & Build Your Case

  Before approaching your employer, collect evidence showing why your compensation deserves a second look. Focus on objective information that supports your request, including:

  • Salary data for comparable positions in your industry and location
  • Recent accomplishments, performance reviews, and measurable results
  • New skills, certifications, or qualifications you’ve earned
  • Additional responsibilities you’ve taken on since your last pay increase, including any promotions without a raise

  Use this information to identify a realistic salary target and explain how your contributions support a pay increase.

• Step 2:

  Ask for a Raise

  Once you’ve built your case, schedule a meeting with your manager to discuss your compensation and ask for a raise. Focus on your contributions and current market rates, rather than comparing yourself directly to coworkers.

  Be specific about the increase you’re requesting, and prepare to explain why it’s justified. If your employer can’t approve a raise immediately, ask what you need to do to qualify and when you can revisit the conversation.

• Step 3:

  Negotiate Beyond Salary

  If a salary increase isn’t possible, consider negotiating other compensation or benefits that improve your overall employment package.

  Depending on your role and employer, options might include:

  • Additional paid time off
  • Flexible scheduling or remote work arrangements
  • Performance bonuses or additional commissions
  • Professional development or certification reimbursement
  • Retirement contributions or other benefits

  These alternatives may not fully close a salary gap, but they can provide additional value while you work toward higher pay.

• Step 4:

  Set Boundaries & Protect Your Time

  Being underpaid doesn’t mean you have to keep taking on more work without additional compensation. If you’re feeling taken advantage of at work, setting professional boundaries can help you protect your time, manage stress, and prevent burnout.

  To protect your time and energy, learn to say no when your workload is full, ask your manager to reprioritize tasks when you’re overloaded, and disconnect from work emails and messages outside your scheduled hours.

• Step 5:

  Focus on Your Professional Development

  If you’re underpaid, building new skills and qualifications can strengthen your case for a raise or help you qualify for higher-paying jobs.

  Consider earning industry-recognized certifications, taking online courses, attending workshops, or seeking mentorship opportunities. Focus on in-demand skills that align with your career goals, and ask your employer about professional development or tuition reimbursement programs.

• Step 6:

  Consider Looking for a Higher-Paying Job

  If you’ve done your research and advocated for yourself professionally but still see no path to earning a fair market rate, finding a new job may be the most effective way to increase your earnings.

  Use your salary research to target positions that offer competitive compensation, and update your resume to highlight the accomplishments, skills, and experience that demonstrate your value. When evaluating opportunities, consider the full compensation package, including benefits, bonuses, and advancement potential.

  Most importantly, don’t let your current salary determine what you ask for next. Base your salary expectations and negotiations on the market value of the role and what you bring to it.

• Step 7:

  Report Illegal Underpayment

  Being paid below-market rates isn’t automatically illegal. But if your employer violates minimum wage or overtime laws, withholds wages you’re legally owed, or engages in unlawful pay discrimination, you may have grounds to file a complaint.

  Depending on the violation, you can contact the U.S. Department of Labor’s Wage and Hour Division, the EEOC, or your state labor department.

  Keep copies of relevant pay stubs, time records, employment agreements, and communications. These documents may help support your complaint.

  Legal disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice from Monster. Employment laws vary by jurisdiction and individual circumstances. Consult a qualified employment attorney for guidance specific to your situation.

Take the Next Step Toward Fair Pay

Being underpaid can be frustrating, especially when you’ve invested time, effort, and expertise into your work. But your current salary doesn’t define your value or limit your future earning potential. You deserve compensation that reflects your skills, experience, and contributions, and knowing your worth puts you in a stronger position to advocate for it, whether with your current employer or somewhere new.