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 2024
Released
19/02/2025
  • Next Release 14/05/2025
    Wage Price Index, Australia, March 2025
  • Next Release 13/08/2025
    Wage Price Index, Australia, June 2025
  • Next Release 19/11/2025
    Wage Price Index, Australia, September 2025
  • View all releases

Key statistics

  • The seasonally adjusted Wage Price Index (WPI) rose 0.7% this quarter.
  • Over the twelve months to the December quarter, the WPI rose 3.2%.
  • The private sector rose 0.7% and the public sector rose 0.6%, seasonally adjusted, for the quarter.
  • In original terms, the largest industry contributors to quarterly wages growth were Health care and social assistance (+0.6%), Manufacturing (+1.0%), and Construction (+0.7%).

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 2024 to Dec Qtr
2024(a)
(% change)
Dec Qtr 2023 to Dec Qtr
2024(a)
(% change)
Trend(b)Australia0.83.3
Private sector0.73.3
Public sector0.73.2
Seasonally Adjusted(c)Australia0.73.2
Private sector0.73.3
Public sector0.62.8
OriginalAustralia0.73.2
Private sector0.73.4
Public sector0.82.9
  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

Seasonally adjusted, the WPI rose 0.7% this quarter. This was the equal lowest quarterly rise for the series since March quarter 2022. Annual wage growth was 3.2% in the December quarter, down from 3.6% in the September quarter.

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

The public sector annual rise of 2.8% was the lowest since December quarter 2022 (+2.5%).

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

Wage growth by method of setting pay

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

  • Awards,
  • Enterprise agreements, or;
  • Individual arrangement.

Jobs covered by individual arrangement generally have wage changes that reflect prevailing labour market conditions. In December quarter 2024, there was a reduction in the contribution these jobs made to wage growth compared to recent December quarters. 

The contribution to growth from enterprise agreements can vary from quarter to quarter depending on when agreements are formed, implemented and expire. The contribution that jobs covered by enterprise agreements made to wage growth in December quarter 2024 almost halved compared to the contribution that they made to December quarter 2023. The drivers for this fall were that increases from existing agreements were generally the same or smaller in size compared to 2023 and that some agreements that began this time last year have scheduled payment dates outside the December period.

  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.

Time since last pay change for jobs under individual arrangements

Comparing across December quarters, for jobs with wages set by individual arrangements that received a wage change in the quarter: 

  • the proportion where the most recent wage change was 12 months ago has increased each year since December quarter 2021. Rising from 26% of these jobs in December 2021 to 58% in December 2024.
  • the proportion that received their last wage change less than 12 months ago has trended downwards since the peak in December 2021. Falling from 35% of jobs receiving a wage change in December 2021 to 21% in December 2024.
  1. Graph relates to jobs recording a pay rise in each December quarter.
  2. Due to rounding components may sum to more than 100.

Sector wage growth

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

The public sector contributed a quarter of total wage growth, down from 34 per cent in December quarter 2023.

Public sector wage growth was lower in December quarter 2024 compared to the same period in 2023 due to a combination of:

  • wage increases for some public sector employees changing to other quarters outside of the December quarter,
  • expiry of enterprise agreements, and; 
  • smaller increases paid under existing agreements.

Quarterly wage dynamics

Quarterly wage dynamics, by sector, original (a)
  Dec Qtr 2023
(%)
Sep Qtr 2024
(%)
Dec Qtr 2024
(%)
All SectorPercentage of jobs with a wage change214516
Average hourly wage change4.43.73.6
Private SectorPercentage of jobs with a wage change164914
Average hourly wage change4.43.93.7
Public SectorPercentage of jobs with a wage change383023
Average hourly wage change4.33.03.3
  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 0.7%, the same as December quarter 2023.

In the private sector, 14% of jobs recorded a wage change, down from the 16% in December quarter 2023. This was the lowest proportion of jobs recording an hourly wage change in the private sector for a December quarter since 2019. 

The average hourly wage change for private sector jobs has trended downwards since the peak reached in September quarter 2023 (+5.8%). The 3.7% recorded this quarter is the lowest average hourly wage change since March quarter 2022 (+3.4%).

  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 0.8%, the same as September quarter 2024, however significantly lower than 1.5% in December quarter 2023.

Compared to the same period last year, the public sector saw a significant decrease in both the proportion of jobs that received a wage movement (23% compared to 38%) and the size of average hourly wage change (+3.3% to +4.3%). In 2023, stronger wage growth reflected changes to some state wage policies and implementation of new enterprise agreements. For December 2024, these same jobs, either saw smaller sized rises from existing agreements or did not contribute to wage growth, due to the timing of approval and registration of new enterprise agreements.

  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 contributor to wages growth.

Original estimates:

  • Information, media and telecommunications industry recorded the highest quarterly rise (+1.4%).
  • Accommodation and food services industry recorded the lowest quarterly rise in wages (+0.1%).
  • Electricity, gas, water and waste services industry recorded the highest through the year wage growth (+4.7%). 
  • Both the Professional, scientific and technical services and the Health care and social assistance industries recorded the lowest through the year growth (+2.8%).
  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 (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 wages growth, primarily driven by jobs in the private sector.

Original estimates:

  • Northern Territory recorded the highest quarterly growth at 1.1%. 
  • Both the Australian Capital Territory and Tasmania recorded the lowest quarterly growth at 0.5%.
  • Tasmania recorded the highest annual growth at 3.9%. 
  • New South Wales recorded the lowest annual growth at 2.9%.
  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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