Remuneration Trends & Insights

The median employment cost movement for the third quarter of 2024 was 4.3%, which was above the inflation rate of 2.9% (seasonally adjusted) recorded by the Australian Bureau of Statistics (ABS) in the year to September 2024. The unemployment rate remained steady at 4.1% in September, while the labour force participation rate kept at record-high levels. The overall economic growth has been slow, while annual wages growth has remained at or above 4.0% for four consecutive quarters.

4.3% Employment cost movement

The median employment cost movement for same incumbents (the same people, in the same role and at the same organisation) in the general market was 4.3% in the third quarter of 2024. Employment cost includes base salary, cash allowances, benefits and fringe benefits tax (FBT), but excludes variable reward.

3.5% - 4.0% Total salary increase forecast for 2025

Mercer's Salary Budget Snapshot collects ongoing insight into remuneration planning intentions. Total salary refers to annual budgeted amount for employee salary increases, including promotional increases, adjustments for inflation, mandatory increases, indexation and merit increases. The latest forecast for total salary increase in 2025 ranges from 3.5% (25th percentile) to 4.0% (75th percentile), with a median of 4.0%.

Median same incumbent movement by industry 

Unless otherwise noted, figures represent the percentage change in total employment cost for an employee in the same role in the same company over a twelve month period. This is referred to as a same incumbent movement. Results shown represent the median or 50th percentile of movements for different industries in the Australian market.

The median employment cost movement for the second quarter of 2024 was 4.0%, which was above the inflation rate of 3.8% (seasonally adjusted) recorded by the Australian Bureau of Statistics (ABS) in the year to June 2024. Although the official unemployment rate has increased and stayed above 4.0% since April, the labour force participation rate kept at record-high levels. The overall economic growth has been slow, while wages growth has experienced three consecutive quarters of being above 4.0% since the September quarter of 2023.

4.0% Employment cost movement

The median employment cost movement for same incumbents (the same people, in the same role and at the same organisation) in the general market was 4.0% in the second quarter of 2024. Employment cost includes base salary, cash allowances, benefits and fringe benefits tax (FBT), but excludes variable reward.

3.5% - 4.3% Total salary increase forecast for 2025

Mercer's Salary Budget Snapshot collects ongoing insight into remuneration planning intentions. Total salary refers to annual budgeted amount for employee salary increases, including promotional increases, adjustments for inflation, mandatory increases, indexation and merit increases. The latest forecast for total salary increase in 2025 ranges from 3.5% (25th percentile) to 4.3% (75th percentile), with a median of 4.0%.

Median same incumbent movement by industry 

Unless otherwise noted, figures represent the percentage change in total employment cost for an employee in the same role in the same company over a twelve month period. This is referred to as a same incumbent movement. Results shown represent the median or 50th percentile of movements for different industries in the Australian market.

The median employment cost movement for the first quarter of 2024 was 4.2%, and was above the inflation rate of 3.6% (seasonally adjusted) recorded by the Australian Bureau of Statistics (ABS) in the year to March 2024. The official unemployment rate increased to 3.8% at the end of the first quarter. The GDP growth remained positive, but at a slower rate.

4.2% Employment cost movement

The median employment cost movement for same incumbents (the same people, in the same role and at the same organisation) in the general market was 4.2% in the first quarter of 2024. Employment cost includes base salary, cash allowances, benefits and fringe benefits tax (FBT), but excludes variable reward.

3.5% - 4.2% Total salary increase budget for 2024

Mercer's Salary Budget Snapshot collects ongoing insight into remuneration planning intentions. Total salary refers to annual budgeted amount for employee salary increases, including promotional increases, adjustments for inflation, mandatory increases, indexation and merit increases. The latest total salary increase budgeted for 2024 ranged from 3.5% (25th percentile) to 4.2% (75th percentile); the median was 4.0%.

Median same incumbent movement - by industry

Unless otherwise noted, figures represent the percentage change in total employment cost for an employee in the same role in the same company over a twelve month period. This is referred to as a same incumbent movement. Results shown represent the median or 50th percentile of movements for different industries in the Australian market.