Australian wages have risen slightly in the past year, but many workers are still feeling the pressure as inflation continues to chip away at their pay.
New data from the Australian Bureau of Statistics (ABS) has revealed that the Wage Price Index rose by 3.4 per cent in the year to March 2025.
While this marks a slight improvement from the 3.2 per cent recorded in the previous quarter, it’s still well below the 4.0 per cent increase seen this time last year.
The growth has been largely driven by the public sector, with new enterprise agreements in education, healthcare and social assistance playing a key role.
Public sector wages have risen by 3.9 per cent, outpacing the private sector’s 3.2 per cent increase.
The higher than average growth in the public sector has reflected a rebound after years of wage stagnation and delayed enterprise bargaining agreements.
But while wages are up, so are living costs.
Australia’s inflation rate for the same period sat at 2.4 per cent, meaning that real wage growth, the increase in earnings adjusted for inflation, remains modest. In practical terms, that means workers may have more money on paper, but many are still struggling to keep up with rising costs of essentials.
The situation is particularly challenging in sectors where wages have grown more slowly. Industries like retail, accommodation and food services recorded some of the lowest wage growth rates, according to ABS data.
High school teacher Jordan Sykes said that teaching was a fulfilling career and that pay rises would definitely encourage young people to join the profession, but that the pay rise wasn’t enough to keep up with the cost-of-living pressures.
“Find the right teacher and they won’t work for the money,” Mr Sykes said.
“But inflation has risen higher than the pay rise.
“It’s just a token gesture.”
