Inflation rate outstripped wage increase

Aussie Money

Source: iStockphoto

Workers in construction, administrative roles, and hospitality saw the highest wage increases but, it's bad news for retail and mining workers, who recorded the lowest.


How much has your pay gone up this year?

New figures from the Department of Jobs and Small Business show that employers are signing half as many wage rise agreements with employees as three years ago.

But in the September quarter, those that were being negotiated only increased by just over 2 per cent, down from 3.5 per cent in the same period in 2014.

Workers in construction, administrative roles, and hospitality saw the highest wage increases.

But it's bad news for retail and mining workers, who recorded the lowest.

It means their pay rises will barely keep up with the growing cost of living.

Small Business Ombudsman Kate Carnell has told Sky News that Australians are having to get used to a new reality.

"We've seen increases that have outstripped inflation for a very long time - and now we're not. And that causes a very real problem for Australians because we've got household debt, we've got our houses our mortgages and so on. We're used to pay increases that outstrip inflation and now we're not getting them." she says.

Meanwhile the Prime Minister has had to defend pay rises for government staffers.

Taxpayers are reportedly contributing to an $840,000 for pay top-ups authorised by Mr Turnbull for political staffers in his government.

Media reports suggest Mr Turnbull has personally intervened to give wage boosts to 30 government employees.

He hasn't denied the story - instead moving to justify the top ups.

Labor's Brendan O'Connor says the Prime Minister has just tried to be what he calls 'sneaky' about granting wage increases to already well-remunerated personal staff.

More details available on podcast above.


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