Australian Wages and Salaries Rise in March 2024, Driven by Seasonal Bonuses

Australia, Police

Article: In March 2024, Australian wages and salaries experienced a significant increase, rising by 2.

Australian Bureau of Statistics (ABS).

The total wages and salaries paid by employers reached $99.

March 2024, reflecting a 7.

Bjorn Jarvis, the head of labour statistics at ABS, explained that the annual growth rate was influenced by various factors, including changes in underlying wage growth, hours worked, periodic payments such as bonuses, and employment growth.

March is traditionally a time when many industries distribute periodic bonuses, making it a seasonal high in the financial year.

Jarvis acknowledged that the monthly data, derived from Single Touch Payroll data from the Australian Taxation Office, provides valuable insights into the impact of bonuses on wages and salaries.

He also highlighted that the leap year day in February 2024 affected the seasonal changes in earnings.

This adjustment resulted in a stronger increase in wages and salaries from February to March 2024.

Examining the quarterly data, it was evident that the growth in wages and salaries paid by employers during the March quarter of 2024 was slower compared to the same period in 2023.

The increase for the March quarter 2024 was 0.

March quarter 2023 experienced a higher growth rate of 0.

The ABS report also highlighted the industries that contributed to the rise in wages and salaries.

Between February and March 2024, wages and salaries increased in 15 out of 19 industries, with the health care and social assistance sector accounting for one-fifth of the overall rise.

The mining, financial and insurance services, and manufacturing industries were responsible for around two-fifths of the increase, largely due to periodic bonuses.

Furthermore, the ABS data revealed that wages and salaries rose in all states and territories, with New South Wales experiencing the largest growth in dollar terms.

Western Australia saw the highest proportional rise, driven by bonuses in the mining industry.

New South Wales also recorded the highest annual increase, followed by Tasmania and the Australian Capital Territory.

Overall, the upward trend in wages and salaries indicates positive economic growth and reflects the impact of seasonal bonuses on employee earnings in various industries across Australia.

Source