Australia Wages Rise 3.4% Over Year, ABS stats
Synopsis
Australia’s Wage Price Index rose 0.8% in the December 2025 quarter and 3.4% annually, according to Australian Bureau of Statistics data. Public sector wages increased 4.0% over the year, exceeding private sector growth. Annual wage growth has stayed within a narrow range for six quarters. Inflation measured 3.8% over the same period, based on figures cited by Reuters and official statistics.
Australia’s wages rose 0.8% in the December quarter and 3.4% over the year, according to the Australian Bureau of Statistics. Public sector wages grew 4.0% annually, faster than private sector pay. Annual wage growth has remained stable for six quarters, while inflation stood at 3.8% in December 2025.
Key Highlights
- Wages rose 0.8% in December quarter, 3.4% annually, ABS data show
- Public sector annual wage growth reached 4.0%, outpacing private sector
- Annual wage growth remained within 3.2% to 3.6% range for six quarters
- Total wages and salaries hit A$104.8 billion in March 2025
Australia’s wages rose 0.8% in the December quarter of 2025, taking annual growth to 3.4%, according to data released by the Australian Bureau of Statistics.
The statistics are the Wage Price Index (WPI), which measures the increase or decrease in rates of hourly payment without bonuses.
Public and Private Sector Breakdown
The quarter-to-quarter growth in public sector wages was 0.8%, and the annual growth was 4.0. The ABS also reported an increase in wages of 0.8% in the private sector every quarter, and the annual increase of 3.4%
The bureau credited the government sector with new and revised enterprise contracts and planned pay increases. Among the biggest pay increments to quarterly pay were health care and social assistance.
According to Reuters, the annual wage growth has been seen to keep within the small range of 3.2 to 3.6% in the last six quarters, and this shows that there are no significant pay increments as compared to the previous high levels.
Comparison With Previous Periods
Previous ABS reports indicate that wages increased by 0.9% in the March quarter of 2025 and annual growth of 3.4 per cent as well. Wages grew by 0.7% in the December quarter and 3.2% in the year.
According to separate ABS payroll statistics, a total of $3.81 billion wages and salaries paid by employers reached A$104.8 billion in March 2025, an increase of 5.8% over the same period of a year.
Inflation Context and Policy Relevance
According to Reuters, consumer price inflation was 3.8% as of the end of the year 2025, which was still higher than the rate of 3.4% in the growth of wages annually.
The Reserve Bank of Australia pays close attention to wage data as a part of its evaluation of the labour market situation and inflation pressure.
Follow Inspirepreneur Magazine for the breaking news.
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
