How much you get paid in Australia can vary based on factors such as the role, your experience and education, your employer's size and profitability, and the broader economic conditions.
The Hays Salary Guide 2024-25 revealed that business confidence is trending upwards, with some 64% predicting business activity will increase over the next 12 months, up from 55% the year before. Nevertheless, there are signs that skill shortages are abating, and 86% of businesses intend to offer a pay rise over the next 12 months—down from 96% the previous year. Employees' expectations have also shifted as cost-of-living in Australia continues to bite. In 2019, 67% of employees expected a pay rise of less than 3% (when inflation was much lower), but in 2024, 61% are hopeful of a pay rise of more than 3%.
Interestingly, of the 15,000 respondents, 77% are either looking for a new role or planning to look for a new role over the next 12 months, with the most common reason being a pay rise (71%).
Let's take a closer look at the typical Aussie salary, what makes the biggest difference to your earning potential and how to secure a pay rise in 2024.
What Is the Average Salary in Australia?
According to comparison careers website SalaryExplorer, which draws on data from employers and surveys of workers, Australia's average yearly salary is $91,200 AUD. Of course, averages can be skewed by very high and very low figures: whereas the median represents the exact midpoint.
SalaryExplorer puts Australia's median salary, therefore, at a more modest $80,100—more than $10,000 less than the average.
Australian Bureau of Statistics figures from late 2022 show the average weekly earnings (pre-tax) in Australia is $1,923.40 according to the latest statistics from the ABS released in May. This is 4.6% higher than the same time last year, but only a 1.8% rise over the previous six months. Occupations with the highest median weekly wages were managers and professionals, with mining, utilities, and finance among the highest-pay sectors.
Increases to minimum and award wages took effect from July 1, meaning Australian employees on the minimum wage working 38 hours a week will earn $24.10 an hour, or $915.90 a week, before tax.
Salaries in Australia generally trend upwards, but recent rises have been modest. One of the key factors experts point to as a cause of the current cost-of-living crisis in Australia is the fact that wages growth has not kept pace with inflation, which was at 7% only 18 months ago. However, with inflation now at 3.8%, future pay rises will only need to exceed this amount to qualify as a pay rise in real terms.
What Impacts the Salary You Receive in Australia?
Hays CEO for Asia Pacific, Matthew Dickason, said salaries were more dependent on individual performance and the demand for your skills than whether you worked in the public or private sector, or your schooling.
In general, experience and results are more important than level of education when it comes to the value of your pay rise, he tells Forbes Advisor.
To boost your salary over time, regularly review your skills and look for upskilling opportunities aligned to your career goals. Regular development and growth will help both your career and your salary advance.
Location matters too.
Dickason said: Salaries in organisations based in major metropolitan areas can be higher compared to those that operate in rural locations, but it's important to consider the cost of living, local economy and competition for staff when reviewing salary differences between organisations based in different locations.
Education and Skill
The Australian government's Department of Education conducted an analysis of employment data, and found that employees with higher levels of education were not only more likely to be employed, but also less likely to be fired during economic downturns.
The Australian Productivity Commission has previously found higher levels of education were associated with higher pay, with a university degree adding around 40% to people's earnings. Achieving a doctorate is an even better predictor of earning potential, with phd employees up to six times more likely to be in the top 10% of incomes.
Hays Salary Guide found skill shortages had eased—especially in construction for 2024/25—however some 49% of employers reported that skill shortages would impact their business. The biggest shortages were in defence, education and architecture.
Dickason said in addition to technical skills, people needed to develop skills for the future.
Employers have told us they expect to need more critical thinking, agile leadership, soft, digital literacy, flexibility, learning mindset and data literacy skills in the next five years, he said.
Sector and Role
It makes sense that employers in sectors scrambling to compete for skilled workers will offer attractive salaries to lure and retain talented people. Some specific roles—like data analysts—may be in demand across multiple sectors.
A 2023 remuneration survey from professional services firm Mercer found new manager hires in project engineering were being offered base salaries 22% higher than incumbents. IT, sales and marketing, engineering and manufacturing were highlighted as sectors willing to spend more to secure talented people.
Experience and Seniority
When you've been working in one profession or industry for many years, you'll accumulate knowledge and insights that can't be gained otherwise—employers value this experience. After five years in a role, you can expect to earn 32% more on average than a colleague in an entry-level position.
However, you might work for many years without significantly increasing your salary if you don't have the ambition to rise to leadership roles. A Governance Institute of Australia report shows that executive and CEO salaries increased by 14% and 15% respectively last financial year, compared to an average wage rise of 3.7% for all Australians.
How Often Should You Expect a Pay Rise?
Many Aussie employers conduct annual performance reviews, where they may recommend salary increases based on your tenure or achievements. SalaryExplorer data shows Aussie workers are likely to receive around 8% more in the pay packet every 16 months, on average.
Another facet of landing a pay rise is being willing to make a case, pitching it effectively and being prepared to negotiate. Securing a new job is another tactic to help increase your earnings.
According to our (salary guide) findings (from 2023/24), 65% of employees say they intend to ask for a pay rise in the next 12 months and this is by far the more common strategy for securing a raise, Dickason said.
However, with the value of pay rises often failing to meet employees' expectations, some people do find that exploring their options in the external jobs market ultimately leads to a higher salary increase.
You can read about how to ask for more money in our guide to securing a pay rise.
Average Salary in Australia by Education level
Based on research by SalaryExplorer, more formal study makes a difference to your earning power. You'll out-earn colleagues with the same experience by up to 29% if you've gained a master's degree.
Average Salary in Australia by Gender
It's common knowledge that women often get paid less than men across all sectors. Nationally, the gender pay gap sits at 21.7%, which means women lose out on $26,393 in earnings per year on average, compared to men. For every $1 on average a man makes, women earn 78c. This pay gap figure includes overtime and bonuses, as well as base pay.
In February 2024, the ABS reported that the average weekly earnings for men working full time was $1,982.80, whereas for women it was $1,744.80 per week.
What's more, the most recent Status of Women report from the Australian Government finds women are underrepresented in high-paying fields such as construction, making up 13.2% of the workforce. Furthermore, women make up 17% of STEM study enrolments and just 10% of architecture and building study enrolments in vocational education and training.
The gender pay gap sits at 21.7%, which means women lose out on $26,393 in earnings per year on average, compared to men. For ever $1 on average a man makes, women earn 78c.
Dickason said Australian workplace regulations that give employees freedom to disclose how much they're paid could positively impact salaries for women by increasing transparency and encouraging action to close the gender pay gap.
We found that 33% of employers share how salary levels and pay increases are set with all employees, and another 31% do so with some employees, he notes.
The removal of pay secrecy in Australia will likely see these figures rise… and prompt more employers to review and adjust salaries if needed to ensure they are fair and equal.
How Do Our Salaries Compare to the Rest of the World?
Compared to the global average compiled by SalaryExplorer, Australians receive higher annual salary increases—3% globally versus 8% in Australia.
How does our average of $91,200 stack up against similar wealthy Western nations like the US and UK? The UK's average salary of £71,200 and the US average salary of $US95,100 convert to around $137,000 and $139,000 AUD respectively at the time of writing.
https://www.forbes.com/advisor/au/personal-finance/average-salary-in-australia/
