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Australian Wage Growth Remains Steady in June

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Wage Price Index shows 3.4 per cent annual rise, slightly above forecasts

Australia’s Wage Price Index (WPI) increased by 0.8 per cent in the June quarter of 2025, according to the Australian Bureau of Statistics (ABS). This rise brings the annual wage growth to 3.4 per cent, based on seasonally adjusted figures. The latest quarterly increase is slightly below the 0.9 per cent rise seen in the March quarter. However, the annual increase surpassed market forecasts, which had predicted a 3.3 per cent rise.

According to Michelle Marquardt, ABS head of price statistics, the annual wage growth remained consistent at 3.4 per cent, mirroring the March quarter of 2025. However, this figure is lower than the 4.1 per cent recorded during the same period last year. Marquardt noted a decrease in the proportion of wage changes exceeding 4 per cent since last year, contributing to the overall moderation in wage growth.

Private sector wages saw a seasonally adjusted quarterly increase of 0.8 per cent in June 2025, while public sector wages rose by 1 per cent. The rise in public sector wages largely reflects backdated payments resulting from newly approved state enterprise agreements, in addition to scheduled increases. The Australian Bureau of Statistics is Australia’s official statistical agency, providing key statistics on a wide range of economic, social, and environmental issues.

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