Government-Funded Pay Rises Drive Australia’s Wage Growth in Early 2025

ABS figures reveal modest real wage growth in early 2025, led by aged care, education and health agreements.

People are seen in the central business district of Sydney, Australia, on May 20, 2021. AAP Image/Bianca De March

Wages grew slightly more than expected at the start of 2025, offering households a modest recovery in purchasing power after years of high inflation, according to ABS data released on May 14.

The wage price index rose 0.9 percent in the March quarter, lifting annual wage growth to 3.4 percent, just ahead of the 2.4 percent rise in consumer prices.