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Australian wages grew 0.8% in the December quarter 2025 and 3.4% over the year, according to seasonally adjusted data released Wednesday by the Australian Bureau of Statistics.

The Wage Price Index report showed public sector wages rising at an annual rate of 4.0%, outpacing private sector growth of 3.4% for the fourth consecutive quarter. ABS Head of Prices Statistics Michelle Marquardt attributed the stronger public sector result to new state enterprise agreements delivering multiple pay rises throughout the year, including backdated increases applied shortly after agreements were finalised.

Healthcare and social assistance was the top-contributing industry for the quarter across both sectors, driven by Commonwealth-funded wage increases in aged care and early childhood education, as well as scheduled enterprise agreement rises for frontline health workers in New South Wales.

Private sector annual wage growth edged up to 3.4% from 3.3% recorded in the year to December 2024.

The ABS noted the Wage Price Index is designed to measure pure price change in wages and salaries, independent of workforce composition or changes in the quality or quantity of work performed.

Source: Australian Bureau of Statistics, Wage Price Index, Australia, December Quarter 2025. Released Feb. 18, 2026.

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