Real wages up again – driven by bargaining

Media Release - May 14, 2025

Wages rose 3.4 per cent over the year to March, driven by strong wage increases for workers paid under collective agreements. This is the clearest sign yet that working people’s incomes are finally being restored after years of going backwards.

The ABS Wage Price Index shows that wages for workers on collective agreements rose by 3.8 per cent over the year to March 2025 – the strongest annual wage growth in the quarter among all pay-setting methods.

Real wages rose by 1.0 per cent over the year to March 2025, the sixth consecutive quarter of real wage growth.

Healthcare and social assistance, as well as education and training, were among the sectors experiencing the largest gains. Workers from these sectors have benefited from significant wage increases from the Federal Government’s workplace relations changes, highlighting the importance of the new rights in improving workers’ living standards.

This positive real wage growth has occurred while inflation has dropped from a high of 7.8 per cent in December 2022, down to 2.4 per cent today, comprehensively undermining any claims of a ‘wage-price spiral.’ 

The Fair Work Commission’s Annual Wage Review decision is expected in early June 2025. The decision will directly impact more than 2.6 million workers on minimum and award wages.

This follows the Cabinet’s approval of the Federal Government’s submission to the Commission to back an above-inflation wage increase, in line with election commitments to support real wage growth.

Australian Unions argue that a 4.5 per cent minimum wage increase is essential for supporting Australia’s lowest-paid workers and lifting the wage floor for the broader workforce.

Quotes attributable to ACTU President Michele O’Neil:

“Today’s wage data is the clearest sign yet that working people are getting ahead after a decade of wage suppression and global inflation.

“Improved collective bargaining rights and fair pay won by union members under the Albanese Government are delivering real results for nurses, teachers, early childhood educators and aged care workers.

“There’s still a way to go, but today’s data shows the importance of having more working people able to bargain over their wages and conditions.

“The upcoming Annual Wage Review will be an important opportunity to continue this progress. Working people should feel valued for their work and have the certainty to plan for their future.

“Building a more balanced and resilient economy means backing lifting real wages to support workers and their families and giving local businesses the confidence to grow.”

The ACTU Network

Australian Unions

Whether you want to join a union, take action in campaigns, or make the most of the benefits of being a union member, Australian Unions is the place to go for information and resources.
Visit Australian Unions

Mind Your Head

We’re taking action to protect workplace mental health.
Visit Mind Your Head

Worksite

Your rights at work for students and for people entering the workforce for the first time.
Visit Worksite

OHS

Information and resources for health and safety representatives and workers about how to speak up at work for health and safety.
Visit OHS

Union Aid Abroad

Union Aid Abroad-APHEDA is the overseas aid and development agency of the ACTU. Our work aims to build self-reliance through support to educational and training projects for workers and their organisations in the developing world.
Visit Union Aid Abroad

ACTU National Union Directory

Find who you are looking for from the who’s who of the union movement.
Visit the ACTU National Union Dictionary

Representing Australian workers and their families.