The Official Wage Index up by 3.7% Over the Year to March. Really??

Scrooge McDeal on 17/05/2023 - 12:08
Last edited 17/05/2023 - 12:13

This news just came in that:

The official Wage Price Index (WPI) from the Australian Bureau of Statistics (ABS) has shown pay packets lifted 0.8 per cent in the March quarter and 3.7 per cent over the year to March.

Really??
Where do this numbers come from?
I work in retail and as me a huge number of workers got no wage increase. How do they calculate this numbers?

I will be interested to see what Ozbargainers think about it. I will also put a poll to see how many people indeed got a wage increase.

Poll Options expired

  • 53
    No increase for me :(
  • 2
    I got a minor increase (below 1%)
  • 11
    I got an ok increase (between 1-2%)
  • 56
    What are you talking about? I got a huge increase. (Above 2%)
Education & Work

Comments

  • Hybroid on 17/05/2023 - 12:11
    +3

    Engineering sector got 3-6% annual pay rise this year.

    • Scrooge McDeal on 17/05/2023 - 12:12
      +1

      That's a pretty good increase. Still below inflation. But much much better than other sectors.

      • Hybroid on 17/05/2023 - 12:14

        There's still very high resource demand vs available skilled supply (hence immigration boom).

        I imagine other sectors like niche specialists, consultancies, finance etc would be even higher.

        • Scrooge McDeal on 17/05/2023 - 12:15

          Hmmm, I might need to go back to uni.

          • Hybroid on 17/05/2023 - 12:40
            +3

            @Scrooge McDeal: Not necessarily. You can always get an $80k document controller role to get your foot in the door then develop skillset from there. So many go on company paid training and over time move on to become auditors, quality assurance, project managers, project controls roles etc.

            Example: https://www.seek.com.au/job/67483946 - $80k salary for basic requirements and even includes additional +$35,000 travel and accommodation since site based.

            Get couple years experience and move up to $120k roles: https://www.seek.com.au/job/67412504

            There's hundreds of open opportunities. Seen so many people go down this path. It's not an exciting role, turnover is high as many don't last, but it surely beats the dredge of retail work for low pay.

            • Donaldhump on 17/05/2023 - 12:52

              @Hybroid: not bad jobs, beats speaking to ppl all day

            • Ghost47 on 20/05/2023 - 15:00

              @Hybroid: Can you go from document controller to engineer without studying a degree in engineering?

              • Hybroid on 20/05/2023 - 15:10
                +1

                @Ghost47: That would be quite challenging as you would not normally be eligible to apply nor obtain an Engineering Chartership. Rare exceptions are made for those that can demonstrate sufficient proficient experience over many many years and multiple successful projects.

                You would ideally need to find a company willing to offer you a comprehensive graduate training programme and supplement it with additional courses and studies over time. You would also need a qualified mentor to support and recommend you throughout.

                You can, however, become an Engineering Project Manager over time without needing a degree at all. Far more practical route and can be even higher paid for proficient experienced individuals.

                • Ghost47 on 22/05/2023 - 09:22

                  @Hybroid: What’s the main difference between Engineering Project Manager and Engineer?

                  Thanks for the reply, your knowledge in this area is always appreciated.

                  • Hybroid on 22/05/2023 - 10:10

                    @Ghost47: Engineer, Senior Engineer, Chartered Engineer and Engineering Manager are technical roles. You need qualifications and skillset assessments to sign off your name to content.

                    Engineering Project Manager is not a technical role. It's management with adaptable skills from any other sector.

    • ozbloke2 on 18/05/2023 - 08:32

      @Hybroid where is that data from? Would love a link

  • USER DC on 17/05/2023 - 12:22
    +1

    hmm and salary increase for PM, MP's ???

    probably over the charts

    • Archi on 17/05/2023 - 12:33
      -1

      public servants will be getting a 10.5% pay increase over the next 3 years, for its 160k strong and increasing workforce

      link

      • USER DC on 17/05/2023 - 12:37
        +2

        I doubt one would classify top end politicians as public servants in real life, (on paper sure).

      • HeWhoKnows on 18/05/2023 - 16:58

        Politicians got a 10% increase yesterday plus extra staff to cope with Clean energy ????

        Government workers across the board have been doing by far the best over the last 3-4 years

      • The Hawk on 18/05/2023 - 23:40

        That's the federal government, each state has a different Enterprise Agreement and even then often different ones for different groups (like Teachers for example). I'd love to see the pollies pay tied to the actual Public Servants…. maybe then we might get a better deal.

        In Victoria the four years from March 2020 to March 2024 look like this for Public Servants. Locked in and unchanging.

        ·20 March 2020: 1.5%
        ·1 December 2020: 1.25%
        ·1 September 2021: 1.5%
        ·1 June 2022: 1.25%
        ·1 March 2023: 1.5%
        ·1 December 2023: 1%

        That works out to be an aggregate of 8.27% over four years (which averages out to be 2% year on year). Better than those that are getting zero increases, but also hardly the gravy train people make it out to be and under the Wage Price Index in every year except 2021.

        Don't get me wrong, it's been a great place to be over COVID, but in my experience, most public servants don't get overtime or bonuses, can't accept gifts and promotion basically doesn't exist (the only way up is to apply for a new job). And in most cases moving to the private sector would pay more but maybe be a less secure job. And like all work places, there are some lazy bastards and some hard workers with most just trying to do an honest days work.

        I was looking for numbers are found this:
        https://vpsc.vic.gov.au/data-and-research/data-facts-visuals…

        It's worth noting that 77% of all Public Servants in Victoria are in Healthcare, Government Schools, Police and Emergency Services, TAFE and other Education.

  • mskeggs on 17/05/2023 - 12:24
    +1

    The banking unions were looking to beat inflation, and some of the public sector unions were angling for 5% or more.
    Maybe you should be asking your union why you aren’t getting paid more.

  • dtc on 17/05/2023 - 12:27
    +4

    Many skilled areas got significant pay rises (5-10%); lots got them start of the FY due to market forces rather than inflation. Some commercial lawyers got a pay rise in January as well as in July

    Dont forget the pay rise you got last calendar year, since this statistic is all pay rises since March 2022. You may not have seen a pay rise this calendar year because the pay rise will be from 1 July, but you will have got one last July or perhaps last October if you are on an award.

    Also the minimum wage rose by 5.2% in July 2022 and the award minimum wage rose by 4.6% from the same date for most sectors or 1 Oct 2022 for others.

    So, in fact, an awful lot of people have had pay rises. Not at the level of inflation, for sure; but definitely not nothing. Maybe just short term memories?

  • Donaldhump on 17/05/2023 - 12:28
    +5

    i lost my job, now a million immigrants will come in and really f… up the job market, just so the government can grow gdp, even though gdp per cpaita will go down.

    these million immigrants will sleep in tents apparently.

    • Scrooge McDeal on 17/05/2023 - 12:30
      -1

      Donald it's that you? Maybe build a huge wall across Australia? Lol 😆
      Btw just joking. You do have some right in what you are saying. But immigrants are needed. Increase population that's what all goverments want.

      • Donaldhump on 17/05/2023 - 12:34
        +3

        yeh not the huge amount being reported.
        what the f is gonna happen to the housing, when the country is already got homeless people left right and centre. Australia is ending up like the usa.

        offtopic

        stage 3 cuts are unfair to poorer people. suits me (should i get a job again), but people on 40k etc should getting the cuts. stage 3 tax cuts just surge more inflation

        • Scrooge McDeal on 17/05/2023 - 12:35

          The government should focus on the quality of immigrants they let in.

        • burningrage on 17/05/2023 - 13:47

          Many people conveniently forget the reason why tax cuts give back to the higher income people is because they are the ones who pay most tax in the first place.

          Nearly 70% Australian taxes were collected from >$90k people even they only made up of 20% of taxpayers.

          31.6% of total tax paid was paid by only 3.6% of the population earning $180k above. In other words, only 4% of tax payers provided nearly 1/3 of the taxation revenue.

          https://www.ato.gov.au/About-ATO/Research-and-statistics/In-…

          So ofc when there is a tax cut, the biggest share of the tax cut is going to these >$90k and even more so to the >$180k. This is how progressive taxation work. Poorer people pay already little or no tax at all but arguably, the biggest user of Govt welfare and benefits.

          What the uproar is all about is really for Govt to give people more money so they don't have to work.

          https://www.news.com.au/finance/money/costs/twist-in-uproar-…

          • Donaldhump on 17/05/2023 - 13:51
            +2

            @burningrage: of course higher people pay more taxes.
            do you think a single bracket from 45k to 200k at 30% is fair.

            i think someone fortunate (myself included) to earn over 150k can pay a little bit more tax to the less fortunate person earning 50k.

            or at very least should be delayed till inflation slows down.

            • burningrage on 17/05/2023 - 14:11
              +3

              @Donaldhump: People often forget that even if you are earning $200k, the amount you really take home is a lot less than you think even you take into account the lower tax bracket next year.

              Right now if you earn $200k, you are paying $64,697 (32.34% tax). Nearly 1/3. With that $135,303, if you assume say 20% savings rate, you would be spending that $108,242. If you assume all your spending attracted GST, you would be paying $9,840 in GST (108,242 / 11).

              Total tax - $74,537 out of $200k (20% saving rate) which is 37.27% excluding Council Rates, Excise Tax (on fuel), State Taxes like stamp duty. I think at best you can say for every $1 you earned, you only get to use 60c (40%). If you don't save at all and spend all your after tax income, you would be at least 42-44cents in a dollar spent on taxes, leaving you with 56 to 58 cents in a dollar.

              In other words, almost 1 day you work for the Government and 1 day you work yourself.

              Yes, you can pay more tax if you like. Peter Costello used to say there is nothing stopping you from donating more money to Australian Taxation Office but for others, I think they are well-aware 40% - 44% effective tax rate is very high.

              And this is before we discuss about additional dollar earned above $180k which is taxed at 47%. Honestly, I feel like I wouldn't want to earn any more than $180k because I will get to enjoy at most 50% of it but with 100% extra stress. Times this by thousands of people and you can perhaps see why we have skill shortages particularly in the area of directorship due to the "fat-cat" stigma, directors' personal liability, and extra stress (think of those board of directors who had to recently had to make the painful decision to call voluntary administrator and suddenly their personal lifestyle get scrutinized)

              • Donaldhump on 17/05/2023 - 14:18
                +2

                @burningrage: higher earnings does mean higher spending.
                how can you say someone in 200k spends 108k on stuff?

                anyway all opinion, give high incomers earners another 9k, inflation go higher, deficit get bigger, things get cut, country more f'd up.

                i have zero mortgage, earn close to 180k, well did this year, i have zero worries financially, but i dont think those tax brackets are fair, and the majority of the nation do not.

                • burningrage on 17/05/2023 - 14:30
                  +2

                  @Donaldhump: It's not hard to spend $108k pa if you have say 2-3 primary school kids, mortgage (my mortgage is absolutely killing me softly at the moment), and house in need of renovation or a car that is already 10 years old where maintaining it cost at least $1,250 (pricey I know, that's 2014 PHEV for ya) and all the insurances we have to have (life, income, health, car, home/content, etc).

                  Edit: Don't forget the Ozb obligatory's "provision for impulse spending" like right now with ClickFrenzy!

                  • Cheapskate Paul on 17/05/2023 - 21:14
                    +1

                    @burningrage: You do not pay GST on your school fees or your mortgage, so your earlier assumption about how much total tax you pay is wrong.

                • burningrage on 17/05/2023 - 14:36

                  @Donaldhump: Good for you for zero mortgage! That means people need to learn from you how to financially manage prudently.

                  It's often too easy to say things are not fair when you are not in it. It doesn't make sense media keep churning out "doom and gloom" stories everyday and for people to say "we are not taxed enough" at the same time. It just doesn't make sense.

                  One of them is lying. If I were to visit VIC Glen Waverley on a Friday/Saturday/Sunday night, I'd say the economy is okay.

    • HeWhoKnows on 18/05/2023 - 17:00

      1000%

  • onetwothreefour on 17/05/2023 - 12:39

    I get about 2% every year, better than nothing but not worth getting excited about.

    • AustriaBargain on 17/05/2023 - 12:43
      +9

      Just enough to stop me from shitting on my bosses desk.

  • boomramada on 17/05/2023 - 13:01

    Its either more than 3% or time to change the job ?

    https://www.news.com.au/breaking-news/australian-bureau-of-s…

  • Ghost47 on 17/05/2023 - 13:16
    +1

    My company increases salaries based on the YoY CPI increase reported at the end of March. So 7% pay bump :)

  • Seraphin7 on 17/05/2023 - 13:28

    High inflation numbers mean high wage increases for some jobs/businesses/industries. That extra cost doesn't just vapourise, it flows through to wages somewhere.

    Unfortunately for me, my company's revenue is, at least not directly, related to the inflationary environment. We're more or less price takers. My expectations on wage increases in the near future are modest and below the 3.7% referred to here.

  • tsunamisurfer on 17/05/2023 - 13:34

    I work in retail and as me a huge number of workers got no wage increase.

    The award wages for retail workers went up.

  • lostgoat on 17/05/2023 - 13:37

    .1% above the expectation = .25 rate rise .

  • brendanm on 17/05/2023 - 13:43

    Got about 14% I think.

  • EightImmortals on 17/05/2023 - 13:43
    +2

    Compared to the steak index running 70%?

  • lostgoat on 17/05/2023 - 13:53

    If your in age care the 15% is good but still from the base it started will not retain the needed people.
    And for the point of this thread they are whipping everyone's a$$ . But pls don't base it on $ increase in wage :)

  • Malik Nasser on 17/05/2023 - 17:46

    Breakdown of the details can be found on the ABS website if you are interested.
    https://www.abs.gov.au/statistics/economy/price-indexes-and-…

  • pharkurnell on 17/05/2023 - 19:03
    +1

    Whats a payrise? I remember King Tut talking about them back in the day

  • Lunarboogie on 18/05/2023 - 06:59
    +1

    My industry got 2.3 per cent which is sad. Probably explains why I'm always on here.

  • 2esc on 18/05/2023 - 09:04

    % increases across a workplace means over time the cap between the lower paid and the higher paid gets bigger as the years roll by.

    A fixed doller increase stops this.

  • freefall101 on 18/05/2023 - 12:39

    I work in retail and as me a huge number of workers got no wage increase.

    The General Retail Award went up 4.7% last year. You either earned well above award rates already or are being underpaid if yours didn't go up.

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