The Wage Price Index (WPI) rose 0.8 per cent in the September quarter 2025, according to data released today by the Australian Bureau of Statistics (ABS).

Michelle Marquardt, ABS head of prices statistics, said: ‘Annual wage growth to the September quarter 2025 was 3.4 per cent. Annual wage growth remained steady compared to the June quarter 2025 but was slightly lower than this time last year.‘

The quarterly growth of 0.8 per cent was in line with the June quarter 2025 and September quarter 2024.

Seasonally adjusted private sector wages grew 0.7 per cent for the quarter, while public sector wages rose 0.9 per cent. 

Annual public sector wage growth was 3.8 per cent in the year to September quarter, slightly up compared to 3.7 per cent at the same time last year. 

On a quarterly and annual basis, public sector wages grew at a faster pace than the private sector for the third consecutive quarter.

By level of government, state government increased its contribution to public sector wages this quarter. The contribution made 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.

‘State government pay rises contributed 82 per cent of public sector wage growth this quarter,’ Ms Marquardt said.

Private sector wages grew 3.2 per cent over the year to September 2025. This is lower than the 3.5 per cent growth recorded in the year to September 2024. 

‘This September quarter, 47 per cent of private sector jobs saw a change in their wages compared to 49 per cent in the same quarter last year,’ Ms Marquardt said.

The average size of hourly wage change was also lower in September quarter 2025 (+3.6 per cent) compared to the same period in 2024 (+3.9 per cent).

September quarter wage growth included the Fair Work Commission Annual Wage Review decision of a 3.5 per cent increase paid from 1 July 2025. This was lower than the 3.75 per cent awarded in 2024.

More information can be found in Wage Price Index, Australia, September quarter 2025.