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Tuesday, 19. August 2008

Wages in Australia

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Wages in Australia

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General Australian Wage Information

  • Wages in Australia are often paid fortnightly.
  • The employer has to pay an extra 9% into a compulsory Superannuation scheme of the employees choice, as long as they earn more than $450 per month.  On a wage of about $50,000 per year, this can be effectively increased by $4,500, although this extra money is tied up until the relevant retiring date.

    When quoting Salaries, some employers may quote a Salary Package of $54,500, meaning $50,000 + super, whilst another may quote; $50,000 Salary, which would then have the 9% super in addition, therefore totalling $54,500.

    Ensure that you compare apples with apples, and that you know if the super has been included in the figure or not.  I would prefer them to always say "Salary package of $xx + Super"  That way, if the government increases it further from 9%, then there would be no questioning that they would have to pay the extra, instead of reducing the salary to accommodate the extra cost.

 

Minimum Wage in Australia

  • As at 1 October 2008,  the Federal Minimum Wage will increase to $14.31 per hour.
  • As at Oct 2007 the Federal Minimum Wage was $13.74 per hour.  http://www.fairpay.gov.au
  • The Federal Minimum wage is for the whole of Australia and cannot be lower in any of the individual States. 
  • The compulsory 9% Superannuation contributions by the employer are on top of that minimum wage payment.

Some Example Actual Wages

  • August 2008
    • ALDI Supermarket vacancies
      • Area Manager $79,600 (inc Super) = $73,000 + super
      • Assistant Store Manager $49,450 to $65,000
      • Retail Assistant Permanent Part Time $19.40 per hour
      • Limited Roster Retail Assistant Permanent Part Time $18.45 per hour
    • Local Council Vacancy S.E. QLD
      • Budget & Management Reporting Officer $53,030 to $56,820 + up to 12% super
    • Budget & Management Reporting Officer
      Brisbane | Redland City Council. | $53,030 to $56,820 + up to 12% super
    • Psychologist (Dementia Care Program)
      Brisbane | QLD Health | $48,216 - $70,870 FTE (Full Time Equivalent)
    • Visiting Medical Specialist.
      Paediatric Services, Brisbane Southside Health Service District.
      Remuneration rates: $146.54 - $160.31 p.h., plus employer contribution to superannuation (up to 12.75%),

 

Australian Average Wage 

The Australian Bureau of Statistics, ABS, publishes the average annual wage figures every quarter. These figures are quoted in three formats: Original, Trend and Seasonally Adjusted.  They also quote these figures as "Full-time adult ORDINARY TIME earnings" and "Full-time adult TOTAL earnings", as well as splits between male and female.

May 2008 Average Weekly Earnings, Australia.      ATO TREND ESTIMATES

Full-time adult ordinary time earnings $1,132.20 pw
Full-time adult total earnings $1,183.10 pw  (Male $1,273.70 Female $1,010.00)

 

I think that about 37% of full time workers in Australia earn ABOVE the average wage. (see my figures further down the page for my reasoning)

February 2008 Average Weekly Earnings, Australia.      TREND ESTIMATES

Full-time adult ordinary time earnings $1,123.30 pw
Full-time adult total earnings $1,173.50 pw

In the twelve months to Feb 2008, full-time adult total earnings rose by 4.4% for males and 5.2% for females

These averages varied in different industries between $821.00 for the Accommodation, Cafes and Restaurants industry to $1,861.40 for the Mining industry.

Source: http://www.abs.gov.au/ausstats/abs@.nsf/mf/6302.0

and:

Feb 2008 UK Average Wage comparison being £23,700, (£455.77pw) according to http://news.bbc.co.uk/1/hi/business/7252504.stm 

 

Some historic Australian National Average wages, based on "Full-time adult total earnings", have been:

Feb-1998 $39,577.20
Feb-1999 $40,856.40
Feb-2000 $42,239.60
Feb-2001 $44,096.00
Feb-2002 $46,607.60
Feb-2003 $49,082.80
Feb-2004 $51,558.00
Feb-2005 $54,298.40
Feb-2006 $56,378.40
Feb-2007 $58,281.60
Feb-2008 $61,022.00

State Award Web Sites

Salary Surveys

  • Ambit IT&T Salary Index - The Ambit Salary Index encompasses the IT&T, Engineering, Executive and Sales & Marketing industries and is compiled by recruitment specialists based in Brisbane, Canberra, Melbourne, Perth and Sydney; drawing upon job offers and employment activity data in each individual city.
  • Hayes Online Salary Survey - The Hays Salary Survey is compiled from information collected from over 100 branches in our network throughout Australia and New Zealand.
  • Ambit Engineering Salary Index - Ambit Engineering's Quarterly National Salary Index Survey
  •  

 

 

Comparison of UK & Australia Average Wages

Average Full-time adult total earnings comparisons in 2007:

Australia: Feb 2007 $58,260 : Aus Source: www.ausstats.abs.gov.au

UK: Feb 2007 £23,764  : UK Source: www.statistics.gov.uk

The highest paid of all UK full-time employees were 'Health professionals' at £1,019 a week.
The lowest paid of all UK full-time employees were 'Sales occupations' at £264 a week.

A breakdown of average pay in the following UK regions at Nov 2007:

£45,274 London
£31,462 South East
£31,462 Eastern England
£27,297 North West
£24,318 North East
 

Feb 2008

Industry breakdown of Australian Full-time adult average ordinary time earnings:

"ORIGINAL DATA"

$1,861.40 Mining
$1,396.40 Finance and Insurance
$1,338.10 Electricity, Gas and Water Supply
$1,229.50 Property and Business Services
$1,208.20 Education
$1,192.50 Communication Services
$1,181.30 Government Administration and Defence
$1,129.40 Cultural and Recreational Services
$1,091.60 Health and Community Services
$1,090.60 Construction
$1,082.80 Transport and Storage
$1,075.40 Personal and Other Services
$1,058.80 Manufacturing
$1,048.50 Wholesale Trade
$  874.50 Retail Trade
$  821.00 Accommodation, Cafes and Restaurants

$1,124.80 All Industries

May 2007 Australian Average Weekly Earnings:

Full-time adult ordinary time earnings $1,088.40 per week (Males: $1,156.00 Females: $968.20)
Full-time adult total earnings $1,134.30 per week (Males: $1,219.10 Females: $983.30)
In the twelve months to May 2007, full-time adult total earnings rose by 4.2% for males and 4.0% for females.

May 2007 Industry breakdown of Full-time adult average ordinary time earnings:

Industry breakdown

$1,811.00 Mining
$1,635.10 Finance and insurance
$1,400.30 Health and community services
$1,336.10 Electricity, gas and water supply
$1,296.70 Education
$1,262.30 Property and business services
$1,205.40 Government administration and defence
$1,191.20 Communication services
$1,146.60 Cultural and recreational services
$1,127.20 Transport and storage
$1,101.60 Personal and other services
$1,077.40 Construction
$1,061.50 Wholesale trade
$1,050.30 Manufacturing
$  889.90 Accommodation, cafes and restaurants
$  874.40 Retail trade
 

State Breakdown

 $1,088.40 Australia

 $1,287.50 ACT
 $1,164.00 WA
 $1,128.00 NSW
 $1,067.40 VIC
 $1,042.40 NT
 $1,019.90 QLD
 $1,011.10 SA
 $1,009.30 TAS

 

2006 Wages

The following figures are taken from the 2006 Census in Australia:

13,360,665 people, over the age of 15, stated their annual income in the 2006 Census.
Of those:

  • 1,103,113 or 8.26% earned between $1-$7,799
  • 2,220,044 or 16.62% earned between $7,800-$12,999
  • 2,063,609 or 15.45% earned between $13,000-$20,799
  • 2,171,002 or 16.25% earned between $20,800-$31,199
  • 1,692,280 or 12.67% earned between $31,200-$41,599
  • 1,257,550 or 9.41% earned between $41,600-$51,999
  • 1,230,053 or 9.21% earned between $52,000-$67,599
  • 675,681 or 5.06% earned between $67,600-$83,199
  • 395,580 or 2.96% earned between $83,200-$103,999
  • 551,753 or 4.13% earned over $104,000

Another 1,416,911 chose not to state their income and 1,140,500 stated either No Income or Negative Income.

Based on the above, in 2006, 21.36% of all earners over 15 years old, both Part and Full Time, earned over $52,000 (ie 92% of the average wage of $56,378) or higher.

To get an approximation of the % of FULL TIME workers earning over that figure is not easy, but if we excluded anyone earning less than $20,800 per year, and half those earning between $20,800 and $32,000*, then we could assume that there were about  6,888,398 Full Time workers earning over about $26,000 and then with 2,853,067 earning $52,000 or over, that would mean 41.4% of full time workers earned 92% of the average wage or more.

From the above, I would guesstimate 37% of full time workers in Australia earned over the average wage.

*The cut off point then being about $26,000, as the Federal Minimum Award Wage was $26,616 in 2006.

 

2005 Average Wage comparisons:

Australia

Australian average wage $53,534 a year, November 2005 Australian Capital City average wage almost $62,000 Source: ABS
Based on: Full-time adult ordinary time earnings $1,029.50 per week = $53,534 per year Full-time adult total earnings $1,078.60 per week = $56,087 per year

UK

UK average Wage £22,411

UK Capital City Average wage £28,912
Source: Guardian Guardian Nov 2005 - The Annual Survey of Hours and Earnings published this week by the Office of National Statistics, for the year ending April 2005, shows that the median gross annual earnings for full-time male workers is £25,100, and £19,400 for full-time female workers. In London the average weekly wage is £556 = $28,912 per year. In Feb 2005 the national average salary was quoted at £22,411, but with variances such as "According to figures gathered by Payfinder, the average salary for a company chairman is £215,000, chief finance officers earn £101,375 and directors an average of £95,000. At the other end of the scale are workers who take home less than a third of the London average. The wage for general assistant in the region is just £5,651, while customer assistants earn an average of £10,055 and cleaners £11,583"

State by State Australian average wages at Feb 2005 were quoted by The Sydney Morning Herald on Aug 19th 2005, at the following Figures:

  • NSW - $54,662
  • ACT - $60,684
  • QLD - $49,600
  • VIC - $51,600
  • TAS - $46,280
  • SA -
  • WA -

These figures are quoted WITHOUT Overtime or Bonuses, ie: "ordinary time earnings"

Wages even within a State can vary tremendously.

A link at the ABS shows average wages in 2001 for each of the NSW suburbs, and some examples are:

  • Mosman: average wage of $77,943 averaged over 12,151 wage earners
  • Bingara: average wage of $25,317 averaged over 495 wage earners
  • Coffs Harbour: average wage of $27,655 with 18,454 wage earners
  • Parramatta: average wage of $35,973 with 59,304 wage earners.
  • Penrith: average wage of $34,431 with 76,727 wage earners.

Remember, these are 2001 figures where the NSW average wage was $37,191, compared to the 2005 figure of $54,662. ie: 2005 is 47% higher than in 2001.

Current average wages can be seen at this ABS link, although they are national figures rather than State based.  The current figures at August 2005 are quoted as:

  • Full-time adult ordinary time earnings $53,175

  • Full-time adult total earnings $55,739

  • In the twelve months to August 2005, full-time adult total earnings rose by 6.4% for males and 5.7% for females

August 2005

Overall Australian Male full-time Average $52,856
Overall Australian Female full-time Average $44,928

 

GROSS HOUSEHOLD INCOMES

ABS Document: 6523.0 - Household Income and Income Distribution, Australia, 2005-06
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 02/08/2007 from: http://www.abs.gov.au/

This document details Mean Gross "Household" Incomes in Australia

2005/2006 Figures were:

NSW
Capital City  $1,559 per week  $81,068 per year
Rest of State  $ 1,092 per week  $56,784 per year

VIC
Capital City  $1,368 per week  $71,136 per year
Rest of State  $1,080 per week  $56,160 per year

QLD
Capital City  $1,357 per week  $70,565 per year
Rest of State  $1,202 per week  $62,504 per year

SA
Capital City  $1,197 per week  $62,244 per year
Rest of State  $1,025 per week  $53,300 per year

WA
Capital City  $1,319 per week  $68,588 per year
Rest of State  $1,239 per week  $64,428 per year

TAS
Capital City  $1,141 per week  $59,332 per year
Rest of State  $ 945 per week  $49,140 per year

NT
Capital City  $1,675 per week  $87,100 per year

ACT
Capital City  $1,639 per week  $85,228 per year

AUSTRALIA
Capital City  $1,410 per week  $73,320 per year
Rest of State  $1,122 per week  $58,344 per year

 

2003/2004 Figures were:

NSW
Capital City  $1,360.00 per week  $70,720.00 per year
Rest of State  $ 974.00 per week  $50,648.00 per year

VIC
Capital City  $1,209.00 per week  $62,868.00 per year
Rest of State  $ 946.00 per week  $49,192.00 per year

QLD
Capital City  $1,070.00 per week  $55,640.00 per year
Rest of State  $1,006.00 per week  $52,312.00 per year

SA
Capital City  $1,058.00 per week  $55,016.00 per year
Rest of State  $ 961.00 per week  $49,972.00 per year

WA
Capital City  $1,116.00 per week  $58,032.00 per year
Rest of State  $1,047.00 per week  $54,444.00 per year

TAS
Capital City  $1,035.00 per week  $53,820.00 per year
Rest of State  $ 799.00 per week  $41,548.00 per year

Links

Other Information

  • What does FTE mean or stand for? Full Time Equivalent when talking about Salary.

 

 

 

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