Remuneration Trends & Insights

Bringing you the most up-to-date information on remuneration trends and insights on the current rewards environment, key economic data affecting pay decisions, topical HR issues and more!

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October 2022 Report

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Last Updated: October 2022

Quarterly Remuneration Overview [Q3 2022]

The median fixed salary movement for the third quarter of 2022 was 3.0%, and is lower than the inflation rate of 7.3% recorded by the Australian Bureau of Statistics (ABS) in the year to September 2022. The official unemployment rate has remained stable at 3.5% at the end of the third quarter. While GDP growth has slowed but remains positive, and the Wage Price Index has grown although it remains low by comparison to inflation.

REMUNERATION MOVEMENTS & FORECASTS [Q3 2022]

How industries compare by median remuneration movements by industry.

MOVEMENT

The median employment cost (EC) movement for same incumbents (the same people, in the same role and at the same organisations) in the general market was 3.0% in the third quarter of 2022.

%
FORECAST

Due to the current situation with COVID-19, Mercer Australia has paused remuneration forecasts.

%

Median Same-Incumbent Movements - By Industry [Q3 2022]

How industries compare by median remuneration movements by industry.

Roll-over each industry to learn more.

Last Updated: October 2022

Monthly Remuneration Overview

The median fixed salary movement for the third quarter of 2022 was 3.0%, and is lower than the inflation rate of 7.3% recorded by the Australian Bureau of Statistics (ABS) in the year to September 2022. The official unemployment rate has remained stable at 3.5% at the end of the third quarter. While GDP growth has slowed but remains positive, and the Wage Price Index has grown although it remains low by comparison to inflation.

Pay Increase Barometer

Contraction
23%
Stable
39%
Expansion
38%

October has seen the proportion of at-market (stable) pay declined slightly to 39%, with the other categories increasing accordingly with below-market (contraction) pay increases at 23% and above-market (expansion) pay increases at 38%.

Gender Pay Index

%

Mercer’s measure of the gender pay index for October is 2.0%. The positive figure indicates that males are attracting higher salaries than their female counterparts.

Remuneration Sentiment Index

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The remuneration sentiment index score for October is 10.9%. This represents a decrease of 12.1 percentage points compared to September's figure.

New Hire Pay Rates

%

In October 2022, overall new hire pay rate was -1.9%. This result indicates that the market is hiring at salaries below those already in the role.

Key Economic Indicators

GDP

%

(June 2022 – Seasonally adjusted)

WPI

%

(June 2022 – Seasonally adjusted)

CPI

%

(September 2022 – Weighted average of eight capital cities)

Unemployment

%

(September 2022 – Seasonally adjusted)

Unemployment remained stable at record low level at 3.5%, while the Wage Price Index (WPI) remains low. Inflation (as measured by the Consumer Price Index (CPI)) has seen a sharp jump over the year. Gross Domestic Product (GDP) increased 3.6% in the 12 months to June 2022.

Source: ABS catalogues 5206.0, 6401.0, 6202.0, 6345.0
While every care has been taken to ensure the accuracy of the information, no warranty is given in respect thereof
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