Wage Price Index, Australia

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The WPI measures changes in the price of labour, unaffected by compositional shifts in the labour force, hours worked or employee characteristics

Reference period
March 2025
Released
14/05/2025
  • Next Release 13/08/2025
    Wage Price Index, Australia, June 2025
  • Next Release 19/11/2025
    Wage Price Index, Australia, September 2025
  • Next Release 18/02/2026
    Wage Price Index, Australia, December 2025
  • View all releases

Key statistics

  • The seasonally adjusted Wage Price Index (WPI) rose 0.9% this quarter.
  • Over the twelve months to the March 2025 quarter, the WPI rose 3.4%.
  • The private sector rose 0.9% and the public sector rose 1.0%, seasonally adjusted, over the quarter.
  • In original terms, the largest industry contributors to quarterly wages growth were Health care and social assistance (+1.4%) and Education and training (+1.3%).

Main features

All sector WPI, quarterly and annual movement (%), seasonally adjusted (a)

All sector WPI, quarterly and annual movement (%), seasonally adjusted (a)

Combination chart with 2 data series.
The chart has 1 X axis displaying .
The chart has 1 Y axis displaying %. Data ranges from 0.1 to 4.3.
End of interactive chart.
  1. See Interpretation of index numbers, Percentage change and rounding on the Methodology page.

Total hourly rates of pay excluding bonuses

Total hourly rates of pay excluding bonuses
  Dec Qtr 2024 to Mar Qtr
2025(a)
(% change)
Mar Qtr 2024 to Mar Qtr
2025(a)
(% change)
Trend(b)Australia0.83.3
Private sector0.83.3
Public sector0.83.3
Seasonally Adjusted(c)Australia0.93.4
Private sector0.93.3
Public sector1.03.6
OriginalAustralia0.83.4
Private sector0.63.3
Public sector1.23.6
  1. See Interpretation of index numbers, Percentage change and rounding on the Methodology page.
  2. See Interpretation of index numbers, Trend estimates on the Methodology page.
  3. See Interpretation of index numbers, Seasonally adjusted indexes and Seasonal analysis methods on the Methodology page.

Overview

Seasonally adjusted, the WPI rose 0.9% this quarter. Private sector wages rose 0.9% and were the main contributor to growth, while public sector wages rose 1.0%.

Annual wage growth was 3.4% in the March quarter 2025, up from 3.2% in the December quarter 2024, but lower than the same period last year (+4.0%).

Over the 12 months to March, private sector wages rose 3.3%, unchanged from December quarter 2024. This remains the lowest annual rise for the sector since June quarter 2022 (+2.7%).

The public sector annual rise was 3.6%, up from 2.9% in December quarter 2024.

Annual wage growth by sector, seasonally adjusted (a)

Annual wage growth by sector, seasonally adjusted (a)

Line chart with 2 lines.
The chart has 1 X axis displaying .
The chart has 1 Y axis displaying %. Data ranges from 1.2 to 4.3.
End of interactive chart.
  1. See Interpretation of index numbers, Percentage change and rounding on the Methodology page.

Fewer jobs received a wage increase greater than 4 per cent over the last year

For jobs with a wage change over the previous 12 months, the share that recorded an annualised movement over 4% has decreased each successive quarter since June quarter 2024.

Annualised wage changes (a)(b)(c)

Annualised wage changes (a)(b)(c)

Combination chart with 7 data series.
The chart has 1 X axis displaying .
The chart has 1 Y axis displaying %. Data ranges from 2.7 to 100.2.
End of interactive chart.
  1. Index series is original, total hourly rates of pay excluding bonuses.
  2. Share of jobs that experienced a wage change. smoothed using a four quarter trailing average.
  3. Excludes jobs that did not receive a wage change in the previous four quarters.

Enterprise agreements drive quarterly wage growth

Jobs in the Australian labour market have their method of setting pay categorised as:

  • Awards,
  • Enterprise agreements, or
  • Individual arrangements.

In March quarter 2025, enterprise agreements made the largest contribution to quarterly wages growth (54%) of the three methods of setting pay. The impact of enterprise agreements on wages growth varies, influenced by the timing of their formation, implementation and expiration.

The larger than typical March quarter contribution from jobs covered by this method of setting pay was due to the commencement of new state-based public sector enterprise agreements.

Contributions to quarterly wage growth by method of setting pay, original (a)(b)(c)

Contributions to quarterly wage growth by method of setting pay, original (a)(b)(c)

Bar chart with 3 data series.
The chart has 1 X axis displaying .
The chart has 1 Y axis displaying percentage points (pp). Data ranges from -0.11 to 2.03.
End of interactive chart.
  1. Analytical series is total hourly rates of pay excluding bonuses.
  2. See Method used to calculate analytical series 'Contribution to wages growth by method of setting pay' on the Methodology page.
  3. See Analytical series index numbers, Appendix B index numbers, methods of setting pay on the Methodology page.

Sector wage growth

The private sector was the main contributor to March quarter wages growth, as is typical due to the overall number of employees and total wage expenditure compared to the public sector.

Wages are often affected by administrative decisions from the government, its agencies, and tribunals like the Fair Work Commission, which can impact different parts of the labour market.

Private sector wage growth in March quarter 2025 included newly applied wage reforms, across the childcare and aged care sectors.

The public sector contributed over a third (35%) to overall growth. The main driver of the larger contribution was the commencement of new enterprise agreements in New South Wales, Western Australia and Victoria.

Share of wage growth by sector, original

Share of wage growth by sector, original

Bar chart with 2 data series.
The chart has 1 X axis displaying .
The chart has 1 Y axis displaying %. Data ranges from 65 to 100.
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Quarterly wage dynamics

Quarterly wage dynamics, by sector, original (a)

Quarterly wage dynamics, by sector, original (a)
  Mar Qtr 2024
(%)
Dec Qtr 2024
(%)
Mar Qtr 2025
(%)
All SectorPercentage of jobs with a wage change141621
Average hourly wage change4.03.63.9
Private SectorPercentage of jobs with a wage change121415
Average hourly wage change4.43.74.3
Public SectorPercentage of jobs with a wage change182339
Average hourly wage change2.93.33.3
  1. Average hourly wage change only includes jobs recording a wage movement in the current quarter.

Private sector

In original terms, private sector wages rose by 0.6%.

Compared to the same time last year:

  • 15% of private sector jobs recorded a wage change, slightly up from 12% in March quarter 2024.
  • the average hourly wage change (+4.3%), was marginally lower than March quarter 2024 (+4.4%).

The Health care and social assistance industry in the private sector recorded a quarterly movement of 1.2%. A large number of jobs received administrative wage adjustments due to the Stage 3 Aged Care Work Value Case, and the Early Childhood Education and Care Worker Retention Payment.

Wage growth for the private sector excluding the Health care and social assistance industry was 0.5%.

Quarterly wage dynamics in the private sector, original (a)

Quarterly wage dynamics in the private sector, original (a)

Combination chart with 2 data series.
The chart has 1 X axis displaying .
The chart has 2 Y axes displaying proportion (%) and percentage.
End of interactive chart.
  1. Average hourly wage change only includes jobs recording a wage movement in the current quarter.

Public sector

In original terms, public sector wages rose 1.2%, higher than the March quarter 2024 rise (+0.5%).

In the public sector:

  • almost two in five jobs (39%) recorded a wage change, the highest proportion since September quarter 2018 (41%).
  • the commencement of new state-based enterprise agreements increased the proportion of jobs recording a wage change.
  • the average hourly wage change (+3.3%) was higher than the 2.9% recorded at the same time last year.

Quarterly wage dynamics in the public sector, original (a)

Quarterly wage dynamics in the public sector, original (a)

Combination chart with 2 data series.
The chart has 1 X axis displaying .
The chart has 2 Y axes displaying proportion (%) and percentage.
End of interactive chart.
  1. Average hourly wage change only includes jobs recording a wage movement in the current quarter.

Industry wage growth

The main contributors to wage growth reflect both the size of the industry (overall number of employees and total wage expenditure) and the size of any wage changes that occurred.

Health care and social assistance was the main industry contributor to quarterly growth. The main drivers of growth for this industry were:

Quarterly contribution - industries

Quarterly contribution - industries

Bar chart with 18 bars.
The chart has 1 X axis displaying .
The chart has 1 Y axis displaying percentage points (pp). Data ranges from 0 to 0.2.
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Original industry estimates:

  • Health care and social assistance recorded the highest quarterly rise (+1.4%).
  • Retail trade, Accommodation and food services and Information media and telecommunications, all recorded the lowest quarterly rise in wages (+0.1%).
  • Electricity, gas, water and waste services recorded the highest through the year wage growth (+4.4%).
  • Finance and insurance services recorded the lowest through the year wage growth (+2.5%).

Annual and quarterly movement - industries (a)

Annual and quarterly movement - industries (a)

Bar chart with 2 data series.
The chart has 1 X axis displaying .
The chart has 1 Y axis displaying %. Data ranges from 0.1 to 4.4.
End of interactive chart.
  1. Index series is original, total hourly rates of pay excluding bonuses.

State and territory wage growth

The main contributors to state or territory wage growth reflect both the size of the state or territory (overall number of employees and total wage expenditure) and the size of any wage changes that occurred.

New South Wales was the main contributor to quarterly wages growth. The main drivers were:

  • private sector jobs.
  • new state-based enterprise agreements in the public sector.

Quarterly contribution - states and territories

Quarterly contribution - states and territories

Bar chart with 8 bars.
The chart has 1 X axis displaying .
The chart has 1 Y axis displaying percentage points (pp). Data ranges from 0 to 0.26.
End of interactive chart.

Original state and territory estimates:

  • Western Australia recorded the highest quarterly growth at 1.0%. The main driver of growth was the public sector, as new state-based enterprise agreements paid initial increases.
  • Northern Territory recorded the lowest quarterly growth at 0.4%.
  • Australian Capital Territory recorded the highest annual growth at 3.9%.
  • New South Wales recorded the lowest annual growth at 3.1%.

Annual and quarterly movement - states and territories (a)

Annual and quarterly movement - states and territories (a)

Bar chart with 2 data series.
The chart has 1 X axis displaying .
The chart has 1 Y axis displaying %. Data ranges from 0.4 to 3.9.
End of interactive chart.
  1. Index series is original, total hourly rates of pay excluding bonuses.

Survey impacts and changes

Data downloads

Time series spreadsheets

Data files

Data cubes - Distribution of expenditure on wages, wage price index, Australia

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Wage Price Index

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Previous catalogue number

This release previously used catalogue number 6345.0.

Using price indexes

Price indexes in contracts

Price indexes published by the Australian Bureau of Statistics (ABS) provide summary measures of the movements in various categories of prices over time. They are published primarily for use in Government economic analysis. Price indexes are also often used in contracts by businesses and government to adjust payments and/or charges to take account of changes in categories of prices (Indexation Clauses).

Use of Price Indexes in Contracts sets out a range of issues that should be taken into account by parties considering the inclusion of an Indexation Clause within a contract utilising an ABS published price index.

Frequently asked questions

The article Frequently asked questions (FAQs) about the Wage Price Index has answers to a number of common questions to do with price indexes and the Wage Price Index, in particular.

Methodology

Scope

Employing Australian organisations (private and public sector) and eligible employee jobs.

 

For specific employer and employee job excludes, see scope and coverage.

Geography

Data available for: 

 

  • Australia
  • Sector
  • State and territories

Source

Prices for a range of jobs are collected from a sample of private and public sector employers via the Wage Price Index Survey.

Collection method

An initial selection of approximately 3,300 Australian organisations (public and private) produces a subset of about 20,000 eligible jobs with data submitted electronically over successive quarters.

Concepts, sources and methods

Detailed information about the data sources and methods used to compile WPI are contained in the Wage Price Index: Concepts, Sources and Methods.

History of changes

  • Sample redesign 2009
  • Expenditure weights update Dec 2023
  • Wage setting analytical series updated June 2023
View full methodology