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.
Prime Minister Malcolm Turnbull says he has made wage growth his new focus.
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.
Labor's Employment Minister Brendan O'Connor says the government isn't doing enough.
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.
