The latest Wage Price Index (WPI) data released by the Australian Bureau of Statistics for the December Quarter 2025 provides important context for members navigating labour costs and pricing pressures.
Private Sector Wages Now Tracking Below Headline Inflation
Private sector wage rates (excluding bonuses) increased by 3.3% annually in trend terms, unchanged from the September quarter. However, this now sits below the most recent headline inflation rate of 3.8%, marking the first time in two years that private sector wage growth has fallen behind consumer price increases.
In comparison, public sector wages grew by 3.9% annually in trend terms, matching headline inflation, following a 0.8% quarterly increase.
Across the broader economy, annual wage growth was 3.4%, unchanged from the previous quarter, also following a 0.8% quarterly rise.
Enterprise and Bargained Outcomes
Data from the Department of Employment and Workplace Relations (September quarter, latest available) shows bargained wage outcomes continuing to broadly track consumer prices:
This indicates that enterprise agreement outcomes remain relatively aligned with inflation expectations, despite softer WPI growth in the broader private sector.
We will continue to monitor wage and inflation data closely and keep members informed of developments that may affect workforce planning, tendering, and contract pricing.
For questions about wages or employee entitlements, please contact the Workplace Relations Team:
📞 (02) 6175 5900
📧 workplace@mba.org.au
