Wages and salaries jump 5.8% in year to March 2025

Data released yesterday (21 May) by the Australian Bureau of Statistics (ABS) has revealed wages and salaries are up 5.8 per cent in the March 2025 period, compared to the March 2024 period.

According to the ABS, the total wages and salaries paid by employers were $104.8 billion in March 2025, showing a 5.8 per cent increase from the $99 billion in March 2024.

Sean Crick, ABS head of labour statistics, pointed towards bonuses in key industries as a pivotal aspect to the growth: “The total wages and salaries paid by employers reached a series high of $104.8 billion in March 2025. Wages and salaries typically peak in March before falling in April, a seasonal pattern observed in previous years.

“Wages and salaries rose in March due to periodic bonuses paid within some industries, such as mining, wholesale trade, and financial and insurance services.”

Crick added: “Comparing month estimates over a longer period, such as a quarter, can help give a clearer view of underlying growth.

“Total wages and salaries paid by employers grew 1.1 per cent across the March quarter 2025, similar to the growth seen in the same quarter in 2023 of 1.3 per cent.”

In terms of the reasons for the March 2025 increase, the ABS touched on some of the extreme weather events that occurred last year intertwined with tight labour market conditions.

“March quarter growth in 2024 was lower at 0.3 per cent, driven by the combined impact of extreme weather events on the east coast of Australia and relatively tighter labour market conditions.”

Further data showed that total wages and salaries paid by employers grew in all 19 industries in the year to March 2025, with annual growth from +3.9 per cent in the mining industry and +11.9 per cent in electricity, gas, water, and waste services.

The greatest rises were found in the healthcare and social assistance services industry, equating to +$1.1 billion (+7.8 per cent), and public administration and safety +$0.6 billion (+8.1 per cent).

Each state saw a rise in total wages and salaries paid by employers in the year to March 2025, ranging from 3.9 per cent in Tasmania to an increase of 7.9 per cent in the Northern Territory.

The data showed that NSW (+$1.7 billion) and Queensland (+$1.3 billion) accounted for the greatest annual growth.