Wage Price Index, Australia

Latest release

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

Reference period
September 2025
Released
19/11/2025
  • Next Release 18/02/2026
    Wage Price Index, Australia, December 2025
  • Next Release 13/05/2026
    Wage Price Index, Australia, March 2026
  • Next Release 12/08/2026
    Wage Price Index, Australia, June 2026
  • View all releases
Release date and time
19/11/2025 11:30am AEDT

Key statistics

  • The seasonally adjusted Wage Price Index (WPI) rose 0.8% this quarter.
  • Over the twelve months to the September 2025 quarter, the WPI rose 3.4%.
  • The private sector rose 0.7% and the public sector rose 0.9%, seasonally adjusted, over the quarter.
  • In original terms, the largest industry contributor to quarterly wages growth was Health care and social assistance (+1.5%).

Main features

  1. See Interpretation of index numbers, Percentage change and rounding on the Methodology page.
Total hourly rates of pay excluding bonuses
  Jun Qtr 2025 to Sep Qtr
2025(a)
(% change)
Sep Qtr 2024 to Sep Qtr
2025(a)
(% change)
Trend(b)Australia0.83.4
Private sector0.83.4
Public sector1.03.9
Seasonally adjusted(c)Australia0.83.4
Private sector0.73.2
Public sector0.93.8
OriginalAustralia1.33.4
Private sector1.43.3
Public sector1.03.8
  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

In September 2025, seasonally adjusted wages rose 0.8% for the quarter, the same as June quarter 2025. Annual wage growth was 3.4% in the September quarter 2025, the same as June quarter 2025, but slightly lower than the same period last year (+3.5%).

A similar proportion of jobs recorded a wage change over the September quarter compared to the same period last year (44% compared to 45%), however, the size of the average hourly wage change reduced slightly from 3.7% to 3.5%.

Private sector wages rose 0.7% for the quarter and were the main contributor to growth. Annually, private sector wages rose 3.2%, down from 3.5% a year earlier.

Wages in the public sector rose 0.9% over the quarter. Through the year public sector wage growth was 3.8%, up from 3.7% in the September quarter 2024.

  1. See Interpretation of index numbers, Percentage change and rounding on the Methodology page.

Annualised wage changes

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

This quarter, 24% of jobs recorded an annualised wage change greater than 4%, compared to 31% of jobs in September quarter 2024.

  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.

Wage growth by method of setting pay

The Fair Work Commission Annual Wage Review 2024-25 decision provided a 3.5% increase to modern award rates, effective from 1 July 2025. This decision was lower than the 3.75% provided in 2023-24 and the 5.75% decision made in 2022-23.

The determination directly influences the size of wage increases for jobs paid under modern award and enterprise agreements linked to the Commission’s annual wage review decision. It can also indirectly influence the size and timing of increases paid to jobs under individual arrangement as employers undertake wage and salary review decisions.

  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

Quarterly wage dynamics, by sector, original (a)
  Sep Qtr 2024
(%)
Jun Qtr 2025
(%)
Sep Qtr 2025
(%)
All SectorPercentage of jobs with a wage change451444
Average hourly wage change3.73.83.5
Private SectorPercentage of jobs with a wage change491247
Average hourly wage change3.93.93.6
Public SectorPercentage of jobs with a wage change302033
Average hourly wage change3.03.53.1
  1. Average hourly wage change only includes jobs recording a wage movement in the current quarter.

Private sector

In original terms, private sector wages grew 1.4% over the quarter, marginally lower than September quarter 2024 (+1.5%).

The private sector saw a slightly lower proportion of jobs recording a wage change (47%) compared to September quarter 2024 (49%). The average hourly wage change for jobs in the private sector was a 3.6% increase. This was lower than the 3.9% recorded for the same period last year.

  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 1.0% for the September quarter 2025. This increase was slightly higher than the previous September quarter (+0.8%).

In September quarter 2025, 33% of public sector jobs recorded a wage movement, higher than the 30% recorded in September quarter 2024. The size of the average hourly wage change for jobs in the public sector that recorded a wage movement was slightly higher this quarter (+3.1%) than the previous September quarter (+3.0%).

  1. Average hourly wage change only includes jobs recording a wage movement in the current quarter.

Public sector contributed slightly more to overall growth (17%) this quarter compared to September quarter 2024 (14%).

The contribution made by each level of government to public sector wage growth reflects both the size of the level of government (overall number of employees and total wage expenditure) and the size of any wage changes that occurred.

State government wage growth typically contributes more to overall public sector wage growth reflecting the relatively larger size of this level of government. This quarter, state government pay rises contributed 82% of public sector wage growth. The relatively strong contribution this quarter reflects that a number of state-based enterprise agreements were implemented after extended bargaining periods.

  1. See Interpretation of index numbers, Percentage change and rounding on the Methodology page.

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.

The Health care and social assistance industry had the greatest contribution to quarterly wage growth.

Original industry estimates:

  • The Accommodation and food services industry recorded the highest quarterly rise (+2.1%).
  • The Financial and insurance services industry recorded the lowest quarterly rise in wages (+0.4%).
  • The Electricity, gas, water and waste services and Public administration and security services industries recorded the highest through the year wage growth (+4.3%).
  • Financial and insurance services industry recorded the lowest through the year wage growth (+2.5%).
  1. Index series is original, total hourly rates of pay excluding bonuses.

State and territory wage growth

Original state and territory estimates:

  • Western Australia recorded the highest quarterly growth at 1.5%.
  • Tasmania recorded the lowest quarterly growth at 1.1%.
  • Western Australia recorded the highest annual growth at 4.0%.
  • The Northern Territory recorded the lowest annual growth at 3.0%.
  1. Index series is original, total hourly rates of pay excluding bonuses.

Survey impacts and changes

Seasonal adjustment and trend

Data downloads

I-Note

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
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