Average annual pay rises secured through new enterprise agreements in Australia reached 4.1 percent in the March quarter, marking a nine-month high and reflecting steady wage growth amid inflationary pressures. Workers in the construction, education, and manufacturing sectors obtained the largest increases during this period.

The Department of Employment and Workplace Relations reported that the average annual pay rise for new private sector agreements rose by 0.3 percentage points to 4.1 percent, the highest since June last year, when wage increases peaked at 4.3 percent—the highest in 16 years. Across both public and private sectors, average pay rises increased by 0.2 percentage points to 4 percent in the March quarter, with public sector increases rising 0.3 percentage points to 3.5 percent.

Despite the upward trend in wage growth, the number of workers covered by enterprise agreements declined to 2.61 million, down from 2.74 million in the prior quarter and below the 2.8 million recorded in June 2025, the highest level since enterprise bargaining began in 1991. The report noted that about 34.6 percent of Australian employees had their pay and conditions set through enterprise agreements as of the March quarter.

Wage gains secured through union-backed agreements continued to outperform those from non-union agreements. Agreements formally covering union members averaged a 4 percent annual pay increase, compared with 3.4 percent for non-union deals, the latter failing to keep pace with inflation. The department compared these wage rises with the Australian Bureau of Statistics’ Wage Price Index and Consumer Price Index (CPI), emphasizing that wage growth remained steady despite higher inflation. The 4 percent average annual wage rise for new agreements in March was just below the 4.1 percent CPI rate, marking the first time since September 2023 that wage growth nearly matched inflation.

In the March quarter, 723 enterprise agreements covering approximately 117,900 employees received approval, a decrease from 1,074 agreements covering 179,000 employees in the December quarter.

Employment and Workplace Relations Minister Amanda Rishworth highlighted the data as evidence that recent industrial relations reforms were strengthening wage growth for Australian workers. “These figures reveal more Australians are engaging with enterprise bargaining, showing confidence in a system that supports higher pay and better conditions,” Rishworth said.

Several notable agreements contributed to the wage increases during the quarter. In the private sector, the Australian Services Union secured a deal with Qantas covering 3,602 employees with average pay rises of 3 percent. Public sector agreements included one for 14,172 Northern Territory employees with average increases of 3.5 percent, a 3.3 percent rise for 861 workers at Victoria’s Glen Eira City Council, and a 3.4 percent increase for 739 electorate officers in Victoria.

Among Australian states and territories, Western Australia reported the highest average pay increases in the March quarter at 5.9 percent, while Tasmania recorded the lowest at 3.2 percent.