This issue includes:
- Information about the WPI expenditure weights that have been updated in the December quarter 2025
The WPI measures changes in the price of labour, unaffected by compositional shifts in the labour force, hours worked or employee characteristics
This issue includes:
| Sep Qtr 2025 to Dec Qtr 2025(a) (% change) | Dec Qtr 2024 to Dec Qtr 2025(a) (% change) | ||
|---|---|---|---|
| Trend(b) | Australia | 0.8 | 3.4 |
| Private sector | 0.8 | 3.3 | |
| Public sector | 0.9 | 3.9 | |
| Seasonally adjusted(c) | Australia | 0.8 | 3.4 |
| Private sector | 0.8 | 3.4 | |
| Public sector | 0.8 | 4.0 | |
| Original | Australia | 0.7 | 3.4 |
| Private sector | 0.7 | 3.3 | |
| Public sector | 0.9 | 3.9 |
In December quarter 2025, seasonally adjusted, wages rose 0.8%, the same as September quarter 2025, but wage growth was higher than December quarter 2024 (+0.7%). Wage growth was 3.4% for the year to the December quarter 2025, up from both September quarter 2025 (+3.3%) and December quarter 2024 (+3.2%).
A higher proportion of jobs recorded a wage change over the December quarter 2025 compared to the same period in 2024 (21% compared to 16%), however, the size of average hourly wage change was lower (+3.5% compared to +3.6%).
Private sector wages rose 0.8%. Annually, private sector wages rose 3.4%, up from both September quarter 2025 and December quarter 2024 (+3.3%).
Wages in the public sector rose 0.8% over the quarter. Through the year growth was 4.0%, higher than both September quarter 2025 (+3.9%) and December quarter 2024 (+2.8%).
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, 23% of jobs recorded an annualised wage change greater than 4%, compared to 28% of jobs in December quarter 2024. This is the lowest share of jobs to record an annualised wage change of greater than 4% since June quarter 2022 (+16%).
In the December quarter 2025, almost half of the growth in wages was contributed by jobs with pay set by an individual arrangement (+48%).
The contribution from jobs covered by enterprise agreements (+43%) was the same as December quarter 2024.
Jobs with their pay set by an award had a larger contribution to quarterly wage growth compared to the same period in 2024 (+9% compared to +3% December quarter 2024). This increased contribution was primarily due to Aged Care Work Value Case payments to aged care workers, NSW state based award rises, and the ECEC retention payment made to child care workers.
The private sector was the main contributor to quarterly wages growth. This is typical due to the total wage expenditure for the private sector being higher than that for the public sector.
The public sector contribution to overall wage growth was higher than December quarter 2024 (+27% compared to +25%).
| Dec Qtr 2024 (%) | Sep Qtr 2025 (%) | Dec Qtr 2025 (%) | ||
|---|---|---|---|---|
| All Sectors | Percentage of jobs with a wage change | 16 | 44 | 21 |
| Average hourly wage change | 3.6 | 3.5 | 3.5 | |
| Private Sector | Percentage of jobs with a wage change | 14 | 47 | 19 |
| Average hourly wage change | 3.7 | 3.6 | 3.7 | |
| Public Sector | Percentage of jobs with a wage change | 23 | 33 | 29 |
| Average hourly wage change | 3.3 | 3.1 | 3.1 |
In original terms, private sector wages rose by 0.7% over the quarter, the same as December quarter 2024.
In the private sector, 19% of jobs recorded a wage change, up from the 14% in December quarter 2024. The average hourly wage change for private sector jobs was 3.7%, the same as December quarter 2024.
In original terms, public sector wages rose 0.9%, up from December quarter 2024 (+0.8%).
In December quarter 2025, more public sector jobs (+29%) recorded a wage change, than in December quarter 2024 (+23%). However, the size of average hourly wage change at 3.1% was lower than the 3.3% recorded in December 2024.
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.
This quarter, state government pay rises contributed 85% of public sector 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 main industry contributor to wages growth over the quarter were jobs in Health care and social assistance.
Industry wage growth, estimates in original terms:
State and territory wage growth, estimates in original terms:
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For information on Data Explorer and how it works, see the Data Explorer user guide.
This release previously used catalogue number 6345.0.
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.
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.
Employing Australian organisations (private and public sector) and eligible employee jobs.
For specific employer and employee job excludes, see scope and coverage.
Data available for:
Prices for a range of jobs are collected from a sample of private and public sector employers via the Wage Price Index Survey.
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.
Detailed information about the data sources and methods used to compile WPI are contained in the Wage Price Index: Concepts, Sources and Methods.