Headline: Australia’s Wage Growth Holds Steady in Q3 2025, Matching Expectations
Australia’s wage momentum remained stable in the September quarter, with official data showing labor costs growing in line with forecasts. The Wage Price Index (WPI) rose 0.8% quarter-on-quarter and 3.4% year-on-year in Q3 2025, unchanged from the previous quarter and broadly consistent with the broader inflation backdrop.
The September quarter is typically a high-impact period for pay outcomes as a large share of wage adjustments take effect. This year’s schedule included the Fair Work Commission’s 3.5% increase to award and minimum wages, feeding into base pay rates across multiple sectors. The steady WPI print indicates that while labor costs are rising, the pace is not accelerating, offering businesses and policymakers a degree of predictability in budgeting and inflation monitoring.
Published quarterly by the Australian Bureau of Statistics, the WPI tracks changes in the price of labor without being influenced by shifts in workforce composition, hours worked, or employee characteristics. Detailed industry and sector breakdowns provide insight into where wage pressures are concentrated, helping employers, economists, and financial markets assess the impact on labor costs, consumer demand, and the broader inflation outlook.
Key Points – Wage Price Index rose 0.8% q/q in Q3 2025, matching expectations and the prior quarter – Annual wage growth held at 3.4% y/y, in line with forecasts – Q3 is a key period for pay adjustments as many increases take effect in the September quarter – The Fair Work Commission granted a 3.5% rise to award and minimum wages this year – ABS WPI measures pure wage changes, excluding workforce composition and hours effects – Stable wage growth suggests steady labor cost pressures for businesses and policymakers
