Latest data available, updated 18 May 2026
Australian wage growth increased by 3.3% in the year to the March quarter 2026, easing slightly from the 3.4% growth recorded in the same quarter a year earlier. Annual wage growth has remained above 3.0% since late 2022, well above the long-run average of 2.6% per annum.
Employee earnings grew by 3.8% p.a. in the year to November 2025. Employee earnings are growing faster than wage rates due to an increase in hours worked in the current labour market cycle. The current rate of earnings growth is above its long-run average of 3.1% p.a.
Public sector wages growth (3.3% p.a.) is currently higher than the private sector (3.2%). Employee earnings growth in the public sector is also stronger with 3.9% p.a. while private sector earnings rose by 3.7% p.a. Annual wage growth slowed in both the private and public sectors compared to the March quarter of 2025.
Wage rates are currently growing at above average rates across industries – particularly utilities, public administration, other services, mining, and transport. Industries with lower wage growth are admin & support services, finance, professional, scientific & technical services and retail trade.
The RBA predicts that wages growth will ease to 3.0% by mid-2028 before persistently steady at 3.2% from June 2026 to Dec 2027. Meanwhile, the Treasury forecasts a higher growth rate of 3.5% for the same period. These forecasts indicate that wage increases are expected to exceed the long-term average (2.6%) through to 2028.
Newly approved EBAs averaged a 3.7% p.a. an increase in the December quarter 2025. Private sector EBAs recorded growth of 3.8%, while public sector EBAs were slightly lower at 3.2%.
The FWC National Minimum Wage increase for 2025-26 is 3.5%. This follows two years of record-setting increases. Recent minimum wage decisions have been well-above underlying economic performance (as measured by GDP growth).
The Wage Price Index (WPI) measures changes in the wage rates of Australian employees across the economy. It is calculated using a similar methodology to the Consumer Price Index, based on a representative ‘basket’ of occupations in each industry and location. The WPI is generally seen to be the most timely and reliable indicator of the rate of change in wages across the economy.
The Average Weekly Ordinary Time Earnings (AWOTE) indicator measures changes in the earnings (i.e. take-home pay) for full-time adult employees. Unlike the WPI, the AWOTE is affected by compositional changes in the workforce (such as changes in industry and occupation). AWOTE provides an indicator of changes in the total value of wages paid in the economy that reflects the current composition of the workforce.
The Average Annual Wage Increases (AAWI) indicator measures the average wage increase agreed in federally-registered Enterprise Bargaining Agreements (EBAs). Two series are provided: wage increases in newly approved EBAs during the quarter, and wage increases occurring in the quarter as a result of previously-approved EBAs. Only those EBAs with ‘classifiable’ wage increases (i.e. those which can be numerically expressed at the time of agreement) are included in the data. The newly-approved AAWI series provides an indicator of recent movements in EBA wage outcomes.
The National Minimum Wage (NMW) is determined by the Fair Work Commission annually for each financial year. It sets the minimum hourly rate for employees with receive the NMW, and influences awards which are linked to it. Approximately one fifth of the Australian workforce receive the NMW or an NMW-linked award rate.
Sources: The data in this factsheet are derived from various ABS labour surveys and other official sources. Data is collected on a quarterly or biannual basis, and is typically released two or three months following the reference period. Ai Group Research & Economics will update this factsheet as new data is released. Refer to notes in the charts for links to the source data.
Ai Group Research & Economics Team
Website: Research and Economics Resource Centre
Email: economics@aigroup.com.au
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