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

Key statistics

  • The seasonally adjusted Wage Price Index (WPI) rose 0.8% this quarter.
  • Over the twelve months to the December quarter, the WPI rose to 3.4%.
  • Across both the private and public sector, seasonally adjusted wages rose 0.8%.
  • In original terms, the largest industry contributor to quarterly wages growth was Health care and social assistance (+1.1%).

What's new this quarter

This issue includes:

  • Information about the WPI expenditure weights that have been updated in the December quarter 2025

Main features

  1. See Interpretation of index numbers, Percentage change and rounding on the Methodology page.
Total hourly rates of pay excluding bonuses
  Sep Qtr 2025 to Dec Qtr
2025(a)
(% change)
Dec Qtr 2024 to Dec Qtr
2025(a)
(% change)
Trend(b)Australia0.83.4
Private sector0.83.3
Public sector0.93.9
Seasonally adjusted(c)Australia0.83.4
Private sector0.83.4
Public sector0.84.0
OriginalAustralia0.73.4
Private sector0.73.3
Public sector0.93.9
  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 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%).

  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, 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%).

  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

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.

  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 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%).

Quarterly wage dynamics, by sector, original (a)
  Dec Qtr 2024
(%)
Sep Qtr 2025
(%)
Dec Qtr 2025
(%)
All SectorsPercentage of jobs with a wage change164421
Average hourly wage change3.63.53.5
Private SectorPercentage of jobs with a wage change144719
Average hourly wage change3.73.63.7
Public SectorPercentage of jobs with a wage change233329
Average hourly wage change3.33.13.1
  1. Average hourly wage change only includes jobs recording a wage movement in the current quarter.

Private sector

In original terms, private sector wages 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.

  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 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.

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

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.

  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 main industry contributor to wages growth over the quarter were jobs in Health care and social assistance.

Industry wage growth, estimates in original terms:

  • Information, media and telecommunications recorded the highest quarterly rise at 1.2%.
  • Administrative and support services and Accommodation and food services industries recorded the lowest quarterly rise at 0.3%.
  • Health care and social assistance saw the highest through the year rise at 4.4%.
  • Financial and insurance services recorded the lowest through the year rise at 2.7%.
  1. Index series is original, total hourly rates of pay excluding bonuses.

State and territory wage growth

State and territory wage growth, estimates in original terms:

  • New South Wales recorded the highest quarterly growth at 1.0%.
  • The Australian Capital Territory recorded the lowest quarterly growth at 0.3%.
  • Western Australia recorded the highest annual growth at 4.1%.
  • The Northern Territory recorded the lowest annual growth at 2.2%.
  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

Create your own tables and visualisations with Data Explorer

Caution: Data in Data Explorer is currently released after the 11:30am release on the ABS website. Please check the reference period when using Data Explorer.

Wage Price Index

For information on Data Explorer and how it works, see the Data Explorer user guide.

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

  • Expenditure weights updated Dec quarter 2025
  • Wage setting analytical series updated June quarter 2023
  • Sample redesign 2009, reviewed 2023
View full methodology
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