(a) See Explanatory Notes paragraphs 39–40, 42. (c) See Explanatory Notes paragraphs 32–38, 42.(b) See Explanatory Notes paragraph 27.

2.50.7Public

2.30.5Private

Sector

2.30.5Australia

Original

2.50.6Public

2.30.6Private

Sector

2.3(b)0.5Australia

Seasonally Adjusted(c)

2.50.6Public

2.30.6Private

Sector

2.3(b)0.5Australia

Wage Price Index (WPI)

Total hourly rates of pay excluding bonuses

Trend(a)

% change% change

Dec Qtr 2017 toDec Qtr 2018

Sep Qtr 2018 toDec Qtr 2018

K E Y F I G U R E S

T O T A L H O U R L Y R A T E S O F P A Y E X C L U D I N G B O N U S E S

Q U A R T E R L Y C H A N G E ( S E P Q T R 2 0 1 8 T O D E C Q T R 2 0 1 8 )

! The trend and seasonally adjusted indexes for Australia rose 0.5% in the December

quarter 2018.

! In seasonally adjusted terms, both the Private and Public sector wage price indexes rose

0.6%.

! The highest index rise at an industry level (in original terms) was recorded in Financial

and insurance services (0.9%) and the lowest in Accommodation and food services

(0.1%).

A N N U A L C H A N G E ( D E C Q T R 2 0 1 7 T O D E C Q T R 2 0 1 8 )

! The trend and seasonally adjusted indexes for Australia both rose 2.3% through the year

to the December quarter 2018.

! In original terms, rises through the year to December quarter 2018 at the industry level

ranged from 1.6% for Information media and telecommunication services to 2.8% for

Electricity, gas, water and waste services and Health care and social assistance.

K E Y P O I N T S

E M B A R G O : 1 1 . 3 0 A M ( C A N B E R R A T I M E ) W E D 2 0 F E B 2 0 1 9

WAGE PRICE INDEX A U S T R A L I A

6345.0D E C E M B E R Q U A R T E R 2 0 1 8

For further informationabout these and relatedstatistics, contact theNational Information andReferral Service on1300 135 070 or WPI onPerth (08) 9360 5151.

(a) See Explanatory Notes paras 39–40, 42

WPI—Quarterly changes: Trend(a)

Dec2014

Dec2015

Dec2016

Dec2017

Dec2018

%

0

0.4

0.8

1.2

1.6PrivatePublic

WPI—Annual change: originalTotal hourly rates of pay excluding bonusesStates/Territories, by sector, Dec Qtr 2018

NSWVIC

QLDSA

WATASNT

ACT

Australia

0 1 2 3 4 5 6 7%

PrivatePublic

I N Q U I R I E S

w w w . a b s . g o v . a u

19 February 2020December 2019

13 November 2019September 2019

14 August 2019June 2019

15 May 2019March 2019

RELEASE DATEISSUE (Quarter)FO R T H C O M I N G I S S U E S

Data referenced in the Key Points and Commentary are available from the tables shown

in this publication or in the corresponding tables of this publication on the ABS website

<http://www.abs.gov.au>.

DA T A RE F E R E N C E S

The weights used to compile the WPI have been updated in the December quarter 2018

using expenditure on wages and salaries from the 2018 Survey of Employee Earnings and

Hours. Weights are updated every two years to reflect structural changes in the

Australian economy. The 2018 weights are available in the Appendix in this publication

and on the ABS website. Further information can be found in paragraphs 20-25 of the

Explanatory Notes.

CH A N G E S IN TH I S I S S U E

Wage Price IndexWPI

Australian Bureau of StatisticsABSAB B R E V I A T I O N S

Da v i d W . Ka l i s c h

Au s t r a l i a n S t a t i s t i c i a n

2 A B S • W A G E P R I C E I N D E X • 6 3 4 5 . 0 • D E C 2 0 1 8

N O T E S

25Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23Appendix: Distribution of expenditure on wages . . . . . . . . . . . . . . . . . . . . . .16Explanatory Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

AD D I T I O N A L IN F O R M A T I O N

15Sector by industry, percentage changes: Original10 . . . . . . . . . . . . . . . . . .14Sector by industry, index numbers: Original9 . . . . . . . . . . . . . . . . . . . . .13Australia, states and territories: Original8 . . . . . . . . . . . . . . . . . . . . . . .

I N D E X E S OF OR D I N A R Y T I M E HO U R L Y RA T E S OF PA Y EX C L U D I N G

BO N U S E S

12Sector: Original7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .I N D E X E S OF HO U R L Y RA T E S OF PA Y IN C L U D I N G BO N U S E S

11Sector by industry, percentage changes: Original6 . . . . . . . . . . . . . . . . . .10Sector by industry, index numbers: Original5 . . . . . . . . . . . . . . . . . . . . .9Australia, states and territories, public sector: Original4 . . . . . . . . . . . . . . .8Australia, states and territories, private sector: Original3 . . . . . . . . . . . . . . .7Australia, states and territories, all sectors: Original2 . . . . . . . . . . . . . . . . .6Sector: Original, seasonally adjusted and trend1 . . . . . . . . . . . . . . . . . . . .

I N D E X E S OF TO T A L HO U R L Y RA T E S OF PA Y EX C L U D I N G BO N U S E S

TA B L E S OF WA G E PR I C E IN D E X E S

4Commentary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

page

A B S • W A G E P R I C E I N D E X • 6 3 4 5 . 0 • D E C 2 0 1 8 3

C O N T E N T S

In the December quarter 2018, Victoria recorded the highest quarterly rise of 0.8%.

Tasmania recorded the lowest quarterly rise of 0.2%.

Rises through the year ranged from 1.6% for Western Australia to 2.7% for Victoria.

In the Private sector, the quarterly rise of 0.8% for Victoria was the highest rise of all

states and territories. The lowest quarterly rise of 0.2% was recorded by the Australian

Capital Territory.

Rises through the year in the Private sector ranged from 1.6% for the Northern Territory

to 2.9% for Tasmania.

In the Public sector, Queensland recorded the highest quarterly rise of all the states and

territories (1.3%). Tasmania recorded the lowest rise of 0.2%.

Through the year, the Northern Territory recorded the highest Public sector rise of 3.4%,

and Western Australia recorded the lowest (1.4%).

State/Terr itory (or ig inal)

In the December quarter 2018, the Private sector index rose 0.5% while the Public sector

rose 0.7%. The All sectors quarterly rise was 0.5%.

The All sectors through the year rise was 2.3%. Through the year the Private and Public

sectors grew 2.3% and 2.5% respectively, which continues the moderate rate of wages

growth over the last two years.

Austral ia/Sector (or iginal)

In the December quarter 2018 both the Private and Public sector indexes rose 0.6%. The

All sectors quarterly rise was 0.5%.

The Private sector through the year rise to the December quarter 2018 of 2.3% was

smaller than the Public sector rise of 2.5%. The Private sector has recorded the highest

through the year growth since December 2014.

WA G E PR I C E IN D E X E S

Austral ia/Sector

(seasonal ly adjusted)

4 A B S • W A G E P R I C E I N D E X • 6 3 4 5 . 0 • D E C 2 0 1 8

C O M M E N T A R Y

Wage growth in the Health care and social assistance industry was the main contributor

to the December quarter 2018 index growth.

In the Private sector, Accommodation and food services recorded the lowest growth over

the quarter (0.1%). Financial and insurance services recorded the highest quarterly rise

of 0.9%.

Rises through the year in the Private sector ranged from 1.5% for Information media and

telecommunication services, to 3.0% for Health care and social assistance.

In the Public sector, Electricity, gas, water and waste services recorded the lowest

quarterly wages growth of 0.4% while Professional, scientific and technical services

recorded the highest at 1.1%.

Rises through the year in the Public sector ranged from 1.9% for Professional, scientific

and technical services to 2.7% for Public administration and safety.

MiningManufacturingElec., gas etcConstruction

WholesaleRetail trade

Accomm. & food svcesTranspt & postal

Info mediaFin & Ins svces

Rent, hire & R/E svcesProf, scient & tech

Admin & supp svcesPublic admin

EducationHealth

Arts & rec svcesOther svces

All Industries

0 1 2 3 4 5 6%

Annual changeQuarterly change

WPI—ANNUAL AND QUARTERLY CHANGES: ORIGINAL , Tota l hour l yrates of pay exc lud ing bonuses —Indust r y , December quar te r 2018

Industry (or ig inal)

A B S • W A G E P R I C E I N D E X • 6 3 4 5 . 0 • D E C 2 0 1 8 5

C O M M E N T A R Y continued

(c) Reference base of each index: 2008–09 = 100.0.(d) See Explanatory Notes paragraph 27.

(a) See Explanatory notes paragraphs 32–38,42.(b) See Explanatory notes paragraphs 39–40,42.

(d)0.50.60.6(d)0.50.60.60.50.70.5December0.60.70.50.60.70.51.00.91.0September0.50.60.5(d)0.50.60.60.40.40.4June

(d)0.50.60.60.50.60.50.40.50.4March2018

0.60.60.50.60.60.50.50.60.4December0.50.50.50.50.50.50.80.80.8September0.60.60.50.50.60.50.40.40.4June0.50.60.50.60.60.50.40.60.3March

20170.50.60.40.50.60.50.40.60.3December

2016

CH A N G E FR O M PR E V I O U S QU A R T E R (% )

2.32.52.32.32.52.32.32.52.3December2.32.62.12.32.62.12.32.52.2September2.12.42.12.12.42.12.12.32.0June2.12.42.02.12.41.92.12.32.0March

20182.12.41.92.12.41.92.12.41.9December2.02.41.92.02.41.92.02.41.9September1.92.41.91.92.41.81.92.51.9June1.92.31.81.92.41.81.92.41.8March

20171.92.31.81.92.31.82.02.31.8December

2016

CH A N G E FR O M CO R R E S P O N D I N G QU A R T E R OF PR E V I O U S YE A R (% )

130.5133.5129.7130.5133.5129.7130.6133.6129.8December129.8132.7128.9129.8132.7128.9130.0132.7129.2September129.0131.8128.2129.0131.8128.2128.7131.5127.9June128.3131.0127.5128.3131.0127.4128.2131.0127.4March

2018127.6130.2126.8127.6130.2126.8127.7130.3126.9December126.9129.4126.2126.9129.4126.2127.1129.5126.4September126.3128.7125.6126.3128.7125.6126.1128.5125.4June125.6127.9125.0125.7127.9125.0125.6128.0124.9March

2017125.0127.1124.4125.0127.1124.4125.1127.2124.5December124.4126.4123.9124.4126.4123.8124.6126.5124.1September123.9125.7123.3123.9125.7123.4123.7125.4123.1June123.3125.0122.8123.3124.9122.8123.2125.0122.7March

2016122.7124.3122.2122.7124.3122.2122.7124.3122.3December

2015

I N D E X NU M B E R S (c)

All SectorsPublicPrivateAll SectorsPublicPrivateAll SectorsPublicPrivate

TREND(b)SEASONALLY ADJUSTED(a)ORIGINAL

Per i od

WAGE PRICE INDEX: TOTAL HOURLY RATES OF PAY EXCLUDING BONUSES,

Secto r1

6 A B S • W A G E P R I C E I N D E X • 6 3 4 5 . 0 • D E C 2 0 1 8

(a) Reference period of each index: 2008–09 = 100.0.

0.50.30.60.20.30.60.50.80.4December1.00.80.71.40.60.91.00.81.2September0.40.40.60.30.30.20.40.50.4June0.40.50.20.60.30.60.30.50.5March

20180.50.50.20.20.30.50.60.60.3December0.80.50.51.30.60.91.00.81.0September0.40.60.20.20.30.20.30.40.3June0.40.40.20.60.30.40.30.60.4March

20170.40.40.50.20.20.60.60.40.4December

2016

CH A N G E FR O M PR E V I O U S QU A R T E R (% )

2.32.02.22.61.62.32.32.72.4December2.32.21.72.61.62.22.32.52.4September2.11.81.52.51.52.12.22.52.1June2.12.01.12.31.52.12.22.32.1March

20182.11.91.12.21.51.92.22.42.0December2.01.91.42.21.32.02.22.22.1September1.91.92.12.01.42.11.92.02.0June1.91.82.12.31.22.21.92.02.1March

20172.01.92.12.41.42.22.01.92.1December

2016

CH A N G E FR O M CO R R E S P O N D I N G QU A R T E R OF PR E V I O U S YE A R (% )

2.01.91.32.31.42.12.22.32.12017–182.01.92.12.21.42.21.92.02.02016–172.21.72.22.31.92.21.92.32.22015–16

CH A N G E FR O M PR E V I O U S F I N A N C I A L YE A R (% )

130.6128.6130.8131.2130.1131.1130.6131.6130.3December130.0128.2130.0130.9129.7130.3129.9130.6129.8September128.7127.2129.1129.1128.9129.1128.6129.5128.3June128.2126.7128.3128.7128.5128.9128.1128.8127.8March

2018127.7126.1128.0127.9128.1128.1127.7128.2127.2December127.1125.5127.8127.6127.7127.5127.0127.4126.8September126.1124.9127.2126.0127.0126.4125.8126.4125.6June125.6124.2126.9125.8126.6126.2125.4125.9125.2March

2017125.1123.7126.6125.1126.2125.7125.0125.2124.7December124.6123.2126.0124.8126.0125.0124.3124.7124.2September123.7122.6124.6123.5125.3123.8123.4123.9123.1June123.2122.0124.3123.0125.1123.5123.1123.4122.6March

2016122.7121.4124.0122.2124.5123.0122.6122.9122.1December

2015

127.9126.4128.3128.3128.3128.4127.9128.5127.52017–18125.4124.0126.7125.4126.5125.8125.1125.6124.92016–17123.0121.7124.1122.7124.7123.1122.8123.1122.42015–16120.4119.7121.4120.0122.4120.4120.5120.3119.82014–15

I N D E X NU M B E R S (a)

Australia

Australian

Capital

Territory

Northern

TerritoryTasmania

Western

Australia

South

AustraliaQueenslandVictoria

New

South

WalesPe r i od

WAGE PRICE INDEX: TOTAL HOURLY RATES OF PAY EXCLUDING BONUSES,

Al l Secto rs : Or ig ina l2

A B S • W A G E P R I C E I N D E X • 6 3 4 5 . 0 • D E C 2 0 1 8 7

(a) Reference period of each index: 2008–09 = 100.0.

0.50.20.30.30.40.50.30.80.4December1.00.90.61.90.61.21.20.91.0September0.40.60.30.30.30.20.40.50.5June0.40.50.30.40.30.40.40.40.4March

20180.40.20.20.20.20.40.20.60.3December0.80.70.61.50.71.01.00.70.9September0.40.40.30.20.30.20.20.40.4June0.30.60.30.30.20.50.40.50.4March

20170.30.20.30.20.10.30.30.30.4December

2016

CH A N G E FR O M PR E V I O U S QU A R T E R (% )

2.32.21.62.91.72.32.32.52.3December2.22.21.42.81.52.12.22.42.2September2.02.11.42.51.62.02.12.22.1June2.01.91.42.31.62.01.92.22.0March

20181.91.91.42.21.52.11.92.22.0December1.92.01.52.21.42.02.01.92.1September1.92.21.71.91.02.01.81.92.0June1.82.11.72.31.02.01.81.92.0March

20171.82.01.62.41.22.01.71.82.0December

2016

CH A N G E FR O M CO R R E S P O N D I N G QU A R T E R OF PR E V I O U S YE A R (% )

2.01.91.42.31.52.02.02.22.02017–181.82.11.62.31.12.01.71.92.02016–172.02.01.82.31.62.21.82.22.22015–16

CH A N G E FR O M PR E V I O U S F I N A N C I A L YE A R (% )

129.8128.5128.7131.9128.6130.8129.6130.9129.5December129.2128.2128.3131.5128.1130.1129.2129.9129.0September127.9127.1127.5129.1127.3128.6127.7128.8127.7June127.4126.3127.1128.7126.9128.4127.2128.2127.1March

2018126.9125.7126.7128.2126.5127.9126.7127.7126.6December126.4125.4126.5127.9126.2127.4126.4126.9126.2September125.4124.5125.8126.0125.3126.1125.1126.0125.1June124.9124.0125.4125.8124.9125.9124.8125.5124.6March

2017124.5123.3125.0125.4124.6125.3124.3124.9124.1December124.1123.0124.6125.1124.5124.9123.9124.5123.6September123.1121.8123.7123.6124.0123.6122.9123.7122.7June122.7121.5123.3123.0123.7123.4122.6123.2122.1March

2016122.3120.9123.0122.5123.1122.8122.2122.7121.7December

2015

127.2126.1127.0128.5126.7128.1127.0127.9126.92017–18124.7123.7125.2125.6124.8125.6124.5125.2124.42016–17122.5121.2123.2122.8123.4123.1122.4122.9122.02015–16120.1118.8121.0120.0121.5120.4120.2120.2119.42014–15

I N D E X NU M B E R S (a)

Australia

Australian

Capital

Territory

Northern

TerritoryTasmania

Western

Australia

South

AustraliaQueenslandVictoria

New

South

WalesPe r i od

WAGE PRICE INDEX: TOTAL HOURLY RATES OF PAY EXCLUDING BONUSES,

Pr i va te Secto r : Or ig ina l3

8 A B S • W A G E P R I C E I N D E X • 6 3 4 5 . 0 • D E C 2 0 1 8

(a) Reference period of each index: 2008–09 = 100.0.

0.70.51.00.20.31.01.30.70.4December0.90.70.90.50.50.30.70.81.5September0.40.21.20.20.10.20.30.80.2June0.50.40.21.10.40.90.20.80.7March

20180.60.60.10.20.40.81.30.90.2December0.80.40.31.00.30.50.60.81.3September0.40.60.10.20.20.20.50.50.2June0.60.30.20.80.80.30.31.00.7March

20170.60.50.80.30.41.21.30.50.2December

2016

CH A N G E FR O M PR E V I O U S QU A R T E R (% )

2.51.83.42.01.42.52.43.12.8December2.52.02.42.01.52.32.53.32.6September2.31.71.82.61.32.52.43.32.4June2.32.10.62.61.32.42.72.92.4March

20182.42.00.62.31.61.82.83.12.4December2.41.91.32.31.62.22.82.72.4September2.51.63.01.92.12.32.42.62.6June2.41.72.92.02.12.42.22.62.6March

20172.31.82.92.21.82.32.92.12.3December

2016

CH A N G E FR O M CO R R E S P O N D I N G QU A R T E R OF PR E V I O U S YE A R (% )

2.41.91.12.41.42.22.73.02.42017–182.41.83.12.02.12.52.42.32.52016–172.51.53.11.83.32.52.52.92.32015–16

CH A N G E FR O M PR E V I O U S F I N A N C I A L YE A R (% )

133.6128.6135.0129.7136.2132.3134.3134.3133.0December132.7128.0133.6129.5135.8131.0132.6133.4132.5September131.5127.1132.4128.9135.1130.6131.7132.3130.5June131.0126.8130.8128.6134.9130.3131.3131.2130.3March

2018130.3126.3130.6127.2134.3129.1131.1130.2129.4December129.5125.5130.5126.9133.8128.1129.4129.1129.2September128.5125.0130.1125.6133.4127.4128.6128.1127.5June128.0124.2130.0125.4133.2127.2127.9127.5127.3March

2017127.2123.8129.8124.4132.2126.8127.5126.3126.4December126.5123.2128.8124.0131.7125.3125.9125.7126.2September125.4123.0126.3123.2130.7124.5125.6124.8124.3June125.0122.1126.3122.9130.4124.2125.2124.3124.1March

2016124.3121.6126.1121.7129.8123.9123.9123.7123.5December

2015

130.6126.4131.1127.9134.5129.5130.9130.7129.92017–18127.6124.1129.7124.9132.6126.7127.5126.9126.92016–17124.6121.9125.8122.4129.9123.6124.5124.0123.82015–16121.6120.1122.0120.2125.7120.6121.5120.5121.02014–15

I N D E X NU M B E R S (a)

Australia

Australian

Capital

Territory

Northern

TerritoryTasmania

Western

Australia

South

AustraliaQueenslandVictoria

New

South

WalesPe r i od

WAGE PRICE INDEX: TOTAL HOURLY RATES OF PAY EXCLUDING BONUSES,

Pub l i c Secto r : Or ig ina l4

A B S • W A G E P R I C E I N D E X • 6 3 4 5 . 0 • D E C 2 0 1 8 9

(b) Includes those industries not separately listed.(a) Reference period of each index: 2008–09 = 100.0.

130.6130.0128.7128.2127.7127.9125.4123.0120.4All industries

129.4129.1127.2127.1126.5126.7123.9121.6118.9Other services131.9130.8128.9128.8128.4128.5125.3122.9120.1Arts and recreation services134.0133.2131.4130.9130.3130.6127.1124.1121.1Health care and social assistance134.7133.9133.0132.4131.3131.8128.7125.7122.4Education and training132.2131.4129.7129.4128.8129.0126.3123.6120.9Public administration and safety126.0125.2124.0123.5123.3123.4121.2119.6118.0Administrative and support services128.8128.0127.0126.4126.1126.3124.1122.3120.4Professional, scientific and technical services126.5126.0124.4124.1123.9124.0122.0120.5118.5Rental, hiring and real estate services132.4131.2130.7129.9129.3129.5126.9124.2121.1Financial and insurance services127.4126.6125.7125.6125.4125.2122.8120.5117.9Information media and telecommunications130.7130.1129.0128.4127.6128.1125.8123.3120.7Transport, postal and warehousing128.3128.2125.8125.6125.3125.5122.8120.2117.5Accommodation and food services126.9126.3124.9124.7124.4124.5122.6120.3117.5Retail trade129.8129.6128.7127.3127.0127.5125.1122.9120.6Wholesale trade130.0129.4128.7128.0127.6127.8125.5123.3121.4Construction136.1135.5134.0133.2132.4132.9130.4127.5124.5Electricity, gas, water and waste services130.7130.2129.1128.5127.9128.2125.4123.0120.1Manufacturing130.8130.4129.5128.7128.5128.7127.0125.9123.9Mining

AL L SE C T O R S

133.6132.7131.5131.0130.3130.6127.6124.6121.6All industries(b)

134.3133.2132.0131.4131.0131.1127.5124.5121.4Health care and social assistance135.0134.2133.4132.9131.9132.3129.1126.0122.5Education and training132.4131.5129.9129.6128.9129.2126.4123.7121.0Public administration and safety129.5128.1127.5127.3127.1127.0124.8123.0121.2Professional, scientific and technical services135.8135.2133.9132.8132.3132.7130.0127.2124.5Electricity, gas, water and waste services

PU B L I C

129.8129.2127.9127.4126.9127.2124.7122.5120.1All industries

129.4129.0127.1127.0126.5126.7123.8121.5118.8Other services132.2131.2129.2129.1128.6128.8125.7123.3120.4Arts and recreation services133.7133.3131.0130.6129.8130.2126.8123.8120.9Health care and social assistance134.1133.5132.2131.5130.3130.9127.8125.1122.4Education and training129.3128.9127.2127.0126.9127.0124.3122.1119.8Public administration and safety125.8125.1123.8123.4123.1123.3121.1119.5117.9Administrative and support services128.7128.0126.9126.3126.0126.2124.1122.3120.4Professional, scientific and technical services126.0125.5123.9123.6123.4123.5121.5120.0118.1Rental, hiring and real estate services132.4131.2130.7129.9129.3129.5126.8124.2121.2Financial and insurance services127.2126.3125.7125.5125.3125.2122.7120.4117.7Information media and telecommunications130.4129.7128.4127.9127.4127.7125.6123.4121.0Transport, postal and warehousing128.2128.1125.7125.6125.3125.4122.8120.1117.4Accommodation and food services126.9126.3124.8124.7124.4124.5122.6120.3117.5Retail trade129.8129.6128.7127.3127.0127.5125.1122.9120.6Wholesale trade130.0129.4128.7128.0127.7127.9125.5123.3121.5Construction136.5135.9134.3133.7132.7133.3130.8127.9124.6Electricity, gas, water and waste services130.7130.2129.1128.5127.9128.2125.4123.0120.1Manufacturing130.8130.3129.5128.7128.5128.7127.0125.9123.9Mining

PR I V A T E

Dec Qtr

2018

Sep Qtr

2018

Jun Qtr

2018

Mar Qtr

2018

Dec Qtr

20172017–182016–172015–162014–15

QUARTERFINANCIAL YEAR

Indus t r y

WAGE PRICE INDEX: TOTAL HOURLY RATES OF PAY EXCLUDING BONUSES,

Secto r by Indust r y —Index numbers (a ) : Or ig ina l5

10 A B S • W A G E P R I C E I N D E X • 6 3 4 5 . 0 • D E C 2 0 1 8

(b) See Explanatory Notes paragraph 27.(a) Includes those industries not separately listed.

0.51.00.40.42.32.12.02.02.02.2All industries

0.21.50.10.52.32.41.82.31.92.3Other services0.81.50.10.32.72.61.92.62.02.3Arts and recreation services0.61.40.40.52.82.82.42.82.42.5Health care and social assistance0.60.70.50.82.62.42.42.42.42.7Education and training0.61.30.20.52.62.12.2(b)2.12.22.2Public administration and safety0.61.00.40.22.21.81.31.81.31.4Administrative and support services0.60.80.50.22.11.91.31.81.51.6Professional, scientific and technical services0.41.30.20.22.11.61.21.61.21.7Rental, hiring and real estate services0.90.40.60.52.42.12.12.02.22.6Financial and insurance services0.60.70.10.21.62.01.82.01.92.2Information media and telecommunications0.50.90.50.62.41.72.11.82.02.2Transport, postal and warehousing0.11.90.20.22.42.02.22.22.22.3Accommodation and food services0.51.10.20.22.01.61.81.51.92.4Retail trade0.20.71.10.22.21.81.71.91.81.9Wholesale trade0.50.50.50.31.91.91.71.81.81.6Construction0.41.10.60.62.81.82.21.92.32.4Electricity, gas, water and waste services0.40.90.50.52.22.31.82.22.02.4Manufacturing0.30.70.60.21.81.41.01.30.91.6Mining

AL L SE C T O R S

0.70.90.40.52.52.42.32.42.42.5All industries(a)

0.80.90.50.32.52.92.42.82.42.6Health care and social assistance0.60.60.40.82.42.62.52.52.52.9Education and training0.71.20.20.52.72.12.32.22.22.2Public administration and safety1.10.50.20.21.91.91.51.81.51.5Professional, scientific and technical services0.41.00.80.42.62.02.12.12.22.2Electricity, gas, water and waste services

PU B L I C

0.51.00.40.42.31.91.82.01.82.0All industries

0.31.50.10.42.32.41.92.31.92.3Other services0.81.50.10.42.82.51.92.51.92.4Arts and recreation services0.31.80.30.63.02.62.42.72.42.4Health care and social assistance0.41.00.50.92.92.22.42.42.22.2Education and training0.31.30.20.11.92.22.02.21.81.9Public administration and safety0.61.10.30.22.21.81.31.81.31.4Administrative and support services0.50.90.50.22.11.81.31.71.51.6Professional, scientific and technical services0.41.30.20.22.11.61.31.61.31.6Rental, hiring and real estate services0.90.40.60.52.42.12.02.12.12.5Financial and insurance services0.70.50.20.21.52.02.02.01.92.3Information media and telecommunications0.51.00.40.42.41.61.91.71.82.0Transport, postal and warehousing0.11.90.10.22.32.02.32.12.22.3Accommodation and food services0.51.20.10.22.01.61.81.51.92.4Retail trade0.20.71.10.22.21.81.71.91.81.9Wholesale trade0.50.50.50.21.81.91.81.91.81.5Construction0.41.20.40.82.91.82.31.92.32.6Electricity, gas, water and waste services0.40.90.50.52.22.31.82.22.02.4Manufacturing0.40.60.60.21.81.41.01.30.91.6Mining

PR I V A T E

Dec Qtr

2018

Sep Qtr

2018

Jun Qtr

2018

Mar Qtr

2018

Dec Qtr

2018

Dec Qtr

2017

Dec Qtr

20162017–182016–172015–16

FROM PREVIOUS QUARTERFROM CORRESPONDINGQUARTER OF PREVIOUS YEAR

FROM PREVIOUS FINANCIALYEAR

Indus t r y

WAGE PRICE INDEX: TOTAL HOURLY RATES OF PAY EXCLUDING BONUSES,

Secto r by Indus t r y —Percentage changes : Or ig ina l6

A B S • W A G E P R I C E I N D E X • 6 3 4 5 . 0 • D E C 2 0 1 8 11

(a) Reference period of each index: 2008–09 = 100.0. (b) See Explanatory Notes paragraph 27.

0.70.60.70.70.70.7December0.90.80.90.80.80.9September0.50.50.60.50.50.5June0.60.60.50.60.50.6March

20180.60.70.60.60.80.6December0.70.90.60.70.80.6September0.70.20.80.70.30.8June0.10.6–0.10.00.6–0.1March

20170.60.60.6(b)0.70.50.6December

2016

CH A N G E FR O M PR E V I O U S QU A R T E R (% )

(b)2.82.52.72.72.52.8December2.72.62.72.72.62.8September2.52.72.52.52.62.5June2.62.42.62.72.42.7March

20182.12.42.02.12.52.0December2.22.32.02.22.22.0September2.22.32.12.12.32.0June1.52.31.31.52.21.3March

20171.92.31.82.02.21.8December

2016

CH A N G E FR O M CO R R E S P O N D I N G QU A R T E R OF PR E V I O U S YE A R (% )

2.32.42.32.42.42.32017–181.92.21.71.82.21.72016–172.22.62.22.32.62.22015–16

CH A N G E FR O M PR E V I O U S F I N A N C I A L YE A R (% )

131.5133.5130.8131.5133.5130.9December130.6132.7129.9130.6132.6130.0September129.4131.6128.8129.5131.5128.8June128.7131.0128.0128.8130.9128.1March

2018127.9130.2127.3128.0130.2127.3December127.2129.3126.5127.2129.2126.5September126.3128.2125.7126.3128.2125.7June125.4127.9124.7125.4127.8124.7March

2017125.3127.1124.8125.4127.0124.8December124.5126.4124.0124.5126.4124.0September123.6125.3123.1123.7125.3123.2June123.5125.0123.1123.5125.0123.1March

2016123.0124.3122.6123.0124.3122.6December

2015

128.3130.5127.7128.4130.5127.72017–18125.4127.4124.8125.4127.4124.82016–17123.1124.6122.7123.2124.6122.72015–16120.4121.5120.1120.4121.4120.12014–15

I N D E X NU M B E R S (a)

All Sectors PublicPrivateAll Sectors PublicPrivate

TOTAL HOURLY RATESORDINARY TIME HOURLY RATES

Per i od

WAGE PRICE INDEX: HOURLY RATES OF PAY INCLUDING BONUSES,

Secto r : Or ig ina l7

12 A B S • W A G E P R I C E I N D E X • 6 3 4 5 . 0 • D E C 2 0 1 8

(a) Reference period of each index: 2008–09 = 100.0.

0.50.30.60.20.40.60.50.70.4December1.00.80.71.30.60.91.10.91.1September0.40.50.60.30.30.20.40.50.4June0.40.40.20.60.30.50.30.50.5March

20180.50.60.20.20.30.50.60.60.3December0.80.50.51.40.60.90.90.81.0September0.40.60.20.20.30.20.30.40.3June0.40.40.20.50.30.40.40.60.5March

20170.40.40.60.20.20.60.60.40.3December

2016

CH A N G E FR O M PR E V I O U S QU A R T E R (% )

2.32.02.22.51.62.32.32.62.4December2.32.21.72.51.62.22.42.52.3September2.11.91.52.51.52.22.12.52.1June2.12.01.12.41.52.12.12.32.1March

20182.12.01.12.21.52.02.22.42.1December2.01.91.52.21.32.12.22.22.1September1.91.92.22.01.32.12.02.02.0June1.91.82.22.21.22.11.92.02.1March

20172.01.82.12.41.42.12.01.82.0December

2016

CH A N G E FR O M CO R R E S P O N D I N G QU A R T E R OF PR E V I O U S YE A R (% )

2.01.91.32.31.42.12.22.32.12017–182.01.82.22.21.42.12.01.92.02016–172.21.82.22.31.92.32.02.32.22015–16

CH A N G E FR O M PR E V I O U S F I N A N C I A L YE A R (% )

130.6128.7131.0131.1130.2131.2130.8131.4130.3December130.0128.3130.2130.8129.7130.4130.1130.5129.8September128.7127.3129.3129.1128.9129.2128.7129.4128.4June128.2126.7128.5128.7128.5128.9128.2128.7127.9March

2018127.7126.2128.2127.9128.1128.2127.8128.1127.3December127.1125.5128.0127.6127.7127.6127.1127.3126.9September126.1124.9127.4125.9127.0126.4126.0126.3125.7June125.6124.2127.1125.7126.6126.2125.6125.8125.3March

2017125.1123.7126.8125.1126.2125.7125.1125.1124.7December124.6123.2126.1124.8126.0125.0124.4124.6124.3September123.7122.6124.7123.4125.4123.8123.5123.8123.2June123.2122.0124.4123.0125.1123.6123.2123.3122.7March

2016122.7121.5124.2122.2124.5123.1122.7122.9122.2December

2015

127.9126.4128.5128.3128.3128.5128.0128.4127.62017–18125.4124.0126.9125.4126.5125.8125.3125.5125.02016–17123.0121.8124.2122.7124.8123.2122.9123.1122.52015–16120.4119.7121.5120.0122.5120.4120.5120.3119.92014–15

I N D E X NU M B E R S (a)

Australia

Australian

Capital

Territory

Northern

TerritoryTasmania

Western

Australia

South

AustraliaQueenslandVictoria

New

South

WalesPe r i od

WAGE PRICE INDEX: ORDINARY TIME HOURLY RATES OF PAY EXCLUDING BONUSES,

Al l Secto rs : Or ig ina l8

A B S • W A G E P R I C E I N D E X • 6 3 4 5 . 0 • D E C 2 0 1 8 13

(b) Includes those industries not separately listed.(a) Reference period of each index: 2008–09 = 100.0.

130.6130.0128.7128.2127.7127.9125.4123.0120.4All industries

129.3129.0127.1127.0126.5126.7123.8121.5118.9Other services131.8130.8128.9128.8128.3128.5125.3122.9120.1Arts and recreation services134.0133.2131.4130.9130.3130.6127.1124.1121.1Health care and social assistance134.7133.9133.0132.4131.3131.8128.7125.7122.4Education and training132.1131.3129.6129.3128.7128.9126.2123.5120.9Public administration and safety126.1125.3124.1123.7123.4123.6121.4119.7118.1Administrative and support services129.0128.2127.2126.7126.3126.5124.4122.6120.7Professional, scientific and technical services126.4125.9124.3124.0123.8123.9121.9120.4118.5Rental, hiring and real estate services132.4131.2130.7129.9129.3129.5126.8124.2121.1Financial and insurance services127.3126.5125.7125.6125.3125.2122.7120.5117.8Information media and telecommunications130.6130.0128.9128.3127.6128.0125.7123.2120.6Transport, postal and warehousing128.2128.2125.7125.6125.3125.4122.8120.1117.4Accommodation and food services126.8126.3124.8124.7124.3124.5122.6120.3117.4Retail trade130.1129.9129.0127.6127.3127.8125.5123.2120.9Wholesale trade130.0129.3128.7128.0127.6127.8125.5123.3121.4Construction136.1135.5134.0133.2132.4132.9130.3127.5124.5Electricity, gas, water and waste services130.7130.1129.0128.5127.9128.2125.4123.0120.1Manufacturing130.8130.4129.6128.7128.5128.8127.1125.9123.9Mining

AL L SE C T O R S

133.6132.7131.5131.0130.2130.5127.5124.6121.5All industries(b)

134.3133.1131.9131.3130.9131.0127.4124.4121.3Health care and social assistance135.0134.2133.4132.8131.9132.3129.1126.0122.4Education and training132.3131.5129.8129.5128.8129.1126.3123.7121.0Public administration and safety129.6128.1127.6127.3127.1127.0124.9123.0121.2Professional, scientific and technical services135.7135.2133.8132.7132.3132.7130.0127.2124.5Electricity, gas, water and waste services

PU B L I C

129.8129.2128.0127.4127.0127.2124.8122.6120.2All industries

129.2128.9127.0126.9126.4126.6123.8121.5118.8Other services132.1131.1129.2129.1128.6128.8125.7123.3120.4Arts and recreation services133.7133.3131.0130.5129.7130.2126.8123.8120.9Health care and social assistance134.1133.6132.2131.5130.4131.0127.9125.2122.5Education and training129.1128.7127.1126.8126.8126.8124.2121.9119.7Public administration and safety126.0125.2124.0123.5123.2123.4121.2119.6118.0Administrative and support services129.0128.2127.2126.7126.3126.5124.3122.6120.7Professional, scientific and technical services125.9125.4123.8123.5123.3123.4121.4119.9118.0Rental, hiring and real estate services132.4131.2130.7129.9129.3129.5126.8124.3121.2Financial and insurance services127.1126.3125.6125.5125.2125.1122.7120.3117.6Information media and telecommunications130.2129.6128.3127.9127.3127.6125.5123.3121.0Transport, postal and warehousing128.2128.1125.7125.5125.3125.4122.8120.1117.4Accommodation and food services126.9126.3124.9124.7124.4124.5122.6120.4117.5Retail trade130.1129.9129.0127.6127.3127.8125.5123.2120.9Wholesale trade130.0129.3128.7128.0127.6127.8125.5123.3121.5Construction136.8136.2134.5134.0132.8133.4131.0128.1124.7Electricity, gas, water and waste services130.7130.1129.0128.5127.9128.2125.4123.0120.1Manufacturing130.8130.4129.6128.7128.5128.8127.1125.9123.9Mining

PR I V A T E

Dec Qtr

2018

Sep Qtr

2018

Jun Qtr

2018

Mar Qtr

2018

Dec Qtr

20172017–182016–172015–162014–15

QUARTERFINANCIAL YEAR

Indus t r y

WAGE PRICE INDEX: ORDINARY TIME HOURLY RATES OF PAY EXCLUDING BONUSES,

Secto r by Indust r y —Index numbers (a ) : Or ig ina l9

14 A B S • W A G E P R I C E I N D E X • 6 3 4 5 . 0 • D E C 2 0 1 8

(b) See Explanatory Notes paragraph 27.(a) Includes those industries not separately listed.

0.5(b)1.00.40.42.32.12.02.02.02.2All industries

0.21.50.10.42.22.41.92.31.92.2Other services0.81.50.10.42.72.61.92.62.02.3Arts and recreation services0.61.40.40.52.82.82.42.82.42.5Health care and social assistance0.60.70.50.82.62.42.42.42.42.7Education and training0.61.30.20.52.62.12.22.1(b)2.22.2Public administration and safety0.61.00.30.22.21.81.31.81.41.4Administrative and support services0.60.80.40.32.11.81.31.71.51.6Professional, scientific and technical services0.41.30.20.22.11.61.21.61.21.6Rental, hiring and real estate services0.90.40.60.52.42.12.02.12.12.6Financial and insurance services0.60.60.10.21.62.01.82.01.82.3Information media and telecommunications0.50.90.50.52.41.82.01.82.02.2Transport, postal and warehousing0.02.00.10.22.32.02.32.12.22.3Accommodation and food services0.41.20.10.32.01.61.81.51.92.5Retail trade0.20.71.10.22.21.81.81.81.91.9Wholesale trade0.50.50.50.31.91.91.71.81.81.6Construction0.41.10.60.62.81.92.12.02.22.4Electricity, gas, water and waste services0.50.90.40.52.22.31.82.22.02.4Manufacturing0.30.60.70.21.81.31.01.31.01.6Mining

AL L SE C T O R S

0.70.90.40.62.62.42.32.42.32.6All industries(a)

0.90.90.50.32.62.92.42.82.42.6Health care and social assistance0.60.60.50.72.42.62.52.52.52.9Education and training0.61.30.20.52.72.12.22.22.12.2Public administration and safety1.20.40.20.22.01.81.51.71.51.5Professional, scientific and technical services0.41.00.80.32.62.12.12.12.22.2Electricity, gas, water and waste services

PU B L I C

0.50.90.50.32.22.01.81.91.82.0All industries

0.21.50.10.42.22.41.82.31.92.3Other services0.81.50.10.42.72.51.92.51.92.4Arts and recreation services0.31.80.40.63.12.52.42.72.42.4Health care and social assistance0.41.10.50.82.82.22.42.42.22.2Education and training0.31.30.20.01.82.22.12.11.91.8Public administration and safety0.61.00.40.22.31.81.31.81.31.4Administrative and support services0.60.80.40.32.11.91.21.81.41.6Professional, scientific and technical services0.41.30.20.22.11.61.31.61.31.6Rental, hiring and real estate services0.90.40.60.52.42.12.02.12.02.6Financial and insurance services0.60.60.10.21.51.92.02.02.02.3Information media and telecommunications0.51.00.30.52.31.61.81.71.81.9Transport, postal and warehousing0.11.90.20.22.32.12.32.12.22.3Accommodation and food services0.51.10.20.22.01.61.91.51.82.5Retail trade0.20.71.10.22.21.81.81.81.91.9Wholesale trade0.50.50.50.31.91.91.71.81.81.5Construction0.41.30.40.93.01.82.31.82.32.7Electricity, gas, water and waste services0.50.90.40.52.22.31.82.22.02.4Manufacturing0.30.60.70.21.81.31.01.31.01.6Mining

PR I V A T E

Dec Qtr

2018

Sep Qtr

2018

Jun Qtr

2018

Mar Qtr

2018

Dec Qtr

2018

Dec Qtr

2017

Dec Qtr

20162017–182016–172015–16

FROM PREVIOUS QUARTER

FROM CORRESPONDINGQUARTER OFPREVIOUS YEAR FROM PREVIOUS FINANCIAL YEAR

Indus t r y

WAGE PRICE INDEX: ORDINARY TIME HOURLY RATES OF PAY EXCLUDING BONUSES,

Secto r by Indus t r y —Percentage changes : Or ig ina l10

A B S • W A G E P R I C E I N D E X • 6 3 4 5 . 0 • D E C 2 0 1 8 15

7 The ordinary time hourly rates of pay indexes that exclude bonuses measure

quarterly changes in ordinary time hourly wage and salary rates. Changes in rates of pay

reflected in these indexes (i.e. pure price changes) arise from a range of sources

including award variations, enterprise and workplace agreements, minimum wage

setting, individual contracts and informal arrangements.

8 These indexes are not affected by changes in:

! penalty payments for overtime, shifts, weekends and public holidays (which

fluctuate depending on the number of hours paid at penalty rates)

! allowances which fluctuate (such as those paid according to how much work is

performed under special work conditions e.g. height, dirt, heat allowances)

! bonus payments (which may, or may not, relate to an individual's work

performance). These payments are specifically excluded when calculating ordinary

time hourly wage and salary rates.

WAGE PRICE INDEXES

4 The WPIs measure changes over time in the price of wages and salaries unaffected by

changes in the quality or quantity of work performed. A range of procedures have been

developed to identify and measure quality and quantity changes and ensure that only

pure price changes are reflected in the indexes.

5 Price-determining characteristics of the jobs are fixed to ensure that changes in these

characteristics do not contribute toward index movements. The following are examples

of changes in price-determining characteristics which are not reflected in index

movements:

! changes in the nature of work performed (e.g. different tasks or responsibilities)

! changes in the quantity of work performed (e.g. the number of hours worked)

! changes in the characteristics of the job occupant (e.g. age, apprenticeship year,

successful completion of training or a qualification, grade or level, experience,

length of service, etc.)

! changes in the location where the work is performed.

6 Changes in the price of wages and salaries resulting from changes in the composition

of the labour market are also excluded from index movements. To achieve this, a

longitudinal survey methodology is used to measure a similar sample of jobs over time.

Once a business is selected in the sample, it will be expected to provide data for a

sample of jobs for a minimum of five years.

DE S I G N OF TH E IN D E X E S

BROAD DESCRIPTION

3 Four WPIs are constructed and published quarterly. These indexes were first

compiled for the September quarter 1997, and cover:

! ordinary time hourly rates of pay excluding bonuses index

! ordinary time hourly rates of pay including bonuses index

! total hourly rates of pay excluding bonuses index

! total hourly rates of pay including bonuses index.

In these indexes the term 'bonuses' refers to bonuses and commissions.

CU R R E N T PU B L I S H E D

IN D E X E S

1 This publication contains indexes measuring changes in the price of wages and

salaries in the Australian labour market.

2 The methodology used to construct the WPIs is similar to that used for other price

indexes such as the Consumer Price Index. In the WPI, index numbers are compiled

using information collected from a representative sample of employee jobs within a

sample of employing organisations. Individual indexes are compiled for various

combinations of state/territory, sector (private/public) and industry division. Industry is

classified according to the Australian and New Zealand Standard Industrial

Classification (ANZSIC) 2006 (cat. no. 1292.0). For more detailed information on the

methodology used in the construction of the WPI, refer to Wage Price Index: Concepts,

Sources and Methods (cat. no. 6351.0.55.001).

I N T R O D U C T I O N

16 A B S • W A G E P R I C E I N D E X • 6 3 4 5 . 0 • D E C 2 0 1 8

E X P L A N A T O R Y N O T E S

12 The target population of employers for the WPIs are all employing organisations in

Australia (private and public sectors) except:

! enterprises primarily engaged in agriculture, forestry or fishing

! private households employing staff

! foreign embassies, consulates, etc.

13 A sample redesign was undertaken and the outcome implemented from the

December quarter 2009. A result of this review was to stop collecting data on a quarterly

basis from micro businesses (0-4 employment). The size and frequency of pay changes

for jobs in micro businesses was found to be the same as businesses with employment of

five or more. Therefore, micro businesses are now treated as being out of coverage but

remain in scope through their continued inclusion in the expenditure weights used in

compiling the WPIs. The introduction of this change does not impact what the indexes

are measuring.

14 All employee jobs in the target population of employers are in scope of the WPIs,

except the following:

! Australian permanent defence force jobs

! non-salaried directors

! proprietors/partners of unincorporated businesses

! persons paid by commission only

! working proprietors/owner managers of Pty Ltd companies

! employees on workers' compensation who are not paid through the payroll

! 'non-maintainable' jobs (i.e. jobs that are expected to be occupied for less than six

months of a year)

! jobs for which wages and salaries are not determined by the Australian labour

market (e.g. most employees of Community Development Employment Programs,

or jobs where the remuneration is set in a foreign country).

15 As such, full-time, part-time, permanent, casual, managerial and non-managerial

jobs are in scope. Costs incurred by employers for work undertaken by self-employed

persons such as consultants and subcontractors are out-of-scope, as they do not relate to

employee jobs.

SCOPE AND COVERAGE

9 The effect of rolling ordinary time penalty payments and allowances into ordinary

time hourly rates is excluded from these indexes. However, when overtime penalty

payments and non-separable shift allowances are rolled into ordinary time hourly rates,

the ordinary time indexes will increase accordingly.

10 The total hourly rates of pay indexes that exclude bonuses are based on a

weighted combination of ordinary time hourly wage and salary rates (described in

paragraphs 7 and 8) and overtime hourly rates. As a result, the total hourly rates of pay

indexes reflect changes in both the ordinary time and overtime hourly rates. However,

the effect of changes in the amount of overtime paid at each overtime rate is not shown

in these indexes.

11 Only those indexes that exclude bonuses and commissions are pure price indexes

because bonus and commission payments can reflect changes in the quality of work

performed. No attempt is made to remove this quality element from the indexes that

include bonuses and commissions.

WAGE PRICE INDEXES

continued

A B S • W A G E P R I C E I N D E X • 6 3 4 5 . 0 • D E C 2 0 1 8 17

E X P L A N A T O R Y N O T E S continued

20 Expenditure weights are a measure of the relative importance of each elementary

aggregate (EA), based on employers' expenditure on wages and salaries. Below the EA

level, sample weights applied to each job on the WPI survey indicate the number of jobs

in the Australian labour market a particular sampled job represents.

21 Businesses selected in the WPI are assigned sample weights according to the

number of similar businesses they represent in their state, industry and sector. Jobs are

assigned sample weights according to the number of jobs they represent in that

business. The total sample weight for a job is determined by multiplying business and job

sample weights together. This total sample weight is the number of jobs in the Australian

labour market a particular sampled job represents.

22 The total employment figures for each business in the WPI survey are obtained

from providers each September quarter. Job weights are updated based on these

employment data and applied to the WPI sample each December quarter. These actions

ensure the WPI sample remains representative.

23 Expenditure weights are updated every two years to reflect structural changes in

the Australian economy. Once updated, the weights are fixed again, and a new weighting

reference period is created. In the following quarters, prices will be compared using this

new weighting reference period. This process is referred to as reweighting. Reweighting

ensures the index remains relevant.

24 The December quarter 2018 weight update uses wages and salaries expenditure

sourced from the 2018 Survey of Employee Earnings and Hours (EEH). The EEH data

items used in the December quarter 2018 weight update are: ordinary time earnings and

total earnings. These data are price updated to represent current period values for each

index. Prior to the December quarter 2016 only EEH total earnings was used in weighting

WEIGHTING

16 Information for the WPI is collected each quarter by mail and online questionnaires

from a sample survey of private and public sector employers selected from the ABS

Business Register. The survey reference date is the last pay period ending on or before

the third Friday of the middle month of the quarter. Data for bonuses are collected in

respect to those bonuses paid during the three month period ending on the third Friday

of the middle month of the quarter.

17 In the first quarter they participate in the survey, each employer selects a sample of

jobs from their workplace(s) using sampling instructions provided by the ABS, and

provides information for these jobs, including detailed pricing specifications. In

subsequent quarters survey respondents are asked to provide details of payments made

to the current occupants of these same jobs. It is essential that the same jobs are priced

in successive quarters, whether the individual job occupants are the same or not.

Approximately 18,000 matched jobs are priced each quarter from the selected

employers.

18 The sampling method retains the highest possible common sample of employers

over time, and retains the same sampled jobs within those employers where possible.

However, it is also necessary to ensure the WPIs continue to be relevant and

representative over time. For these reasons, the employer sample is refreshed annually

(for the December quarter) in a way that ensures a high proportion of common

selections while allowing new employers to be represented in the sample. Refreshing the

sample also allows the ABS to control the length of time that small businesses are

included in the sample.

19 Between each annual refresh of the employer sample, a small number of employee

jobs will be lost from the survey sample because of the closure of some businesses. In

addition, some jobs in continuing businesses will be replaced in the sample because of

restructuring and other job changes.

DATA COLLECTION

18 A B S • W A G E P R I C E I N D E X • 6 3 4 5 . 0 • D E C 2 0 1 8

E X P L A N A T O R Y N O T E S continued

30 Index numbers for financial years are calculated as simple (arithmetic) averages of

the four quarterly index numbers for the financial year. As the WPIs were first produced

for the September quarter 1997, the first financial year index number that can be

calculated is for 1997–98. Consequently, the first percentage change between financial

FINANCIAL YEAR INDEXES

28 Movements in indexes from one period to another can be expressed either as

changes in index points or as percentage changes. In this publication, percentage

changes are calculated to illustrate three different kinds of movements in indexes:

! movements between consecutive quarters

! movements between corresponding quarters of consecutive years (i.e. changes

'through the year')

! movements between consecutive financial years.

29 The following example illustrates the method of calculating changes in index points

and percentage changes between any two periods:

Total hourly rates of pay excluding bonuses, All Sectors, Australia

Index numbers, trend (see table 1)

December quarter 2018 130.5

less December quarter 2017 127.6

Change in index points 2.9

Percentage change 2.9/127.6 x 100 = 2.3%

INDEX MOVEMENTS

27 The published index numbers have been rounded to one decimal place, and the

percentage changes (also rounded to one decimal place) are calculated from the

rounded index numbers. In some cases, this can result in the percentage change for the

total level of a group of indexes being outside the range of the percentage changes for

the component level indexes. Seasonally adjusted and trend quarterly estimates are

calculated from unrounded original indexes. The percentage changes (rounded to one

decimal place) are calculated from the rounded index numbers.

PERCENTAGE CHANGE AND

ROUNDING

26 Index numbers in this publication measure changes in the price of wages and

salaries between the commencement of the series and a later period. Index number

levels cannot be compared across states/territories as they do not provide comparative

information on the relative levels of labour costs. Similarly, index number levels cannot

be compared across sectors or industries. The usefulness of index numbers stems from

the fact that index numbers for any two periods can be used to directly calculate the

change or movement in the price of labour between the two periods. These movements

can be compared across states/territories, sectors or industries.

I N T E R P R E T A T I O N OF IN D E X

NU M B E R S

all indexes. This is the item which aligns most closely with the headline WPI series. The

use of EEH ordinary time earnings to weight the ordinary time hourly rates of pay

indexes improves the conceptual alignment of the expenditure weight to the index. This

improvement in alignment has not impacted the indexes. The new weights are available

in the Appendix in the publication and as a data cube on the ABS website. The next

weight update will occur in the December quarter 2020.

25 When the expenditure weights are updated, the published index numbers will not

recommence at 100.0. The series based on the old expenditure weights and that based

on the new weights are linked to form a continuous series.

WEIGHTING continued

A B S • W A G E P R I C E I N D E X • 6 3 4 5 . 0 • D E C 2 0 1 8 19

E X P L A N A T O R Y N O T E S continued

32 Seasonally adjusted estimates are derived by estimating and removing systematic

calendar related effects from the original series. In most economic data these calendar

related effects are a combination of the classical seasonal influences (e.g. the effect of the

weather, social traditions or administrative practices) plus other kinds of calendar related

variations, such as the number of trading days, Easter or the proximity of significant days

in the year (e.g. Christmas). In the seasonal adjustment process, both seasonal and other

calendar related factors evolve over time to reflect changes in activity patterns. The

seasonally adjusted estimates reflect the sampling and non-sampling errors to which the

original estimates are subject.

33 The total hourly rates of pay excluding bonuses index is the only index of the WPI

that is seasonally adjusted. Institutional effects largely drive the seasonality of this index.

Important factors in determining this seasonality are the timing of effect of agreements,

the length of these agreements, and the timing of the implementation of significant wage

determinations that impact on rates of pay. A significant institutional change in wage

setting arrangements can affect the relative level (or trend) and seasonality of the index.

34 Prior to 2006, the Australian Industrial Relations Commission (AIRC) handed down

annual Safety Net Review (SNR) decisions which set federal full-time minimum award

rates. Since the commencement of the WPI, the SNR has contributed to the level of the

index. Most of its impact on the WPI was in the September quarter with some residual

effect in the December quarter each year. This impact contributed to the level of

seasonality for those quarters. As a result of industrial relations changes associated with

Work Choices there was no SNR decision in 2006. The setting of federal minimum wage

rates became the responsibility of the Australian Fair Pay Commission (AFPC).

35 The AFPC's first decision was handed down on 26 October 2006 with a date of effect

of 1 December 2006. The impact on the WPI of the first AFPC ruling was mainly in the

March quarter 2007. From 2007 to 2009, AFPC determinations impacted the December

quarter WPI.

36 On 1 July 2009 Fair Work Australia (FWA) began operations as part of a new

national workplace relations system underpinned by the Fair Work Act 2009. In June

2010 FWA announced its first annual minimum wage decision and the increase impacted

the WPI in the September quarter 2010. Since 2010, minimum wage decisions have taken

effect in the September quarter of each year and have resulted in a change of seasonality.

To account for the change in timing, the seasonally adjusted and trend series were

reanalysed in the September quarter 2010 to remove the influence of the different timing

of minimum wage decisions in any year on the WPI.

SE A S O N A L L Y AD J U S T E D

IN D E X E S

years that can be calculated is between 1997–98 and 1998–99. The following example

illustrates the method of calculating the financial year index number for 2017–18:

Total hourly rates of pay excluding bonuses, All Sectors, Australia

Index numbers, original (see table 2)

September quarter 2017 127.1

plus December quarter 2017 127.7

plus March quarter 2018 128.2

plus June quarter 2018 128.7

Financial year 2017–18 511.7/4 = 127.9

31 Percentage changes between the index numbers for any two financial years can be

calculated using the method outlined in paragraph 29 above.

FINANCIAL YEAR INDEXES

continued

20 A B S • W A G E P R I C E I N D E X • 6 3 4 5 . 0 • D E C 2 0 1 8

E X P L A N A T O R Y N O T E S continued

42 Original index numbers will be released as final figures at the time they are first

published. Revisions will only occur in exceptional circumstances. Trend and seasonally

adjusted indexes may be revised as extra quarters are included and analysed for seasonal

influences (see paragraphs 32 to 40).

RE V I S I O N S TO IN D E X E S

41 The index reference period of an index series is that period for which the value of

the index is set to 100.0. From the September quarter 2009 issue of this publication the

wage price indexes are calculated on an index reference period of 2008-09 = 100.0.

I N D E X RE F E R E N C E PE R I O D

39 The trend is a measure of the underlying direction of a series. The ABS trend

estimates for the WPI are derived by applying a 7-term Henderson-weighted moving

average to all quarters of the respective seasonally adjusted indexes except the first three

and last three quarters. Trend estimates are created for these quarters by applying

surrogates of the 7-term Henderson weighted moving average to the seasonally adjusted

indexes, tailored to each time series. In general, trend estimates give a better indication

of underlying behaviour than the seasonally adjusted estimates. Please refer to the ABS

Information Paper, A Guide to Interpreting Time Series - Monitoring Trends (cat. no.

1349.0).

40 Increases in minimum wage rates contribute to the relative level (or trend) of the

WPI. A review of the seasonally adjusted series was undertaken in the September quarter

2010 to remove the impacts of the different timing of the increases in minimum wage

rates. A trend break correction has been applied between the June quarter and the

September quarter 2009 to remove the shift in the underlying level as a result of no

increase to minimum wage rates being awarded in 2009.

TR E N D ES T I M A T E S

38 The ABS uses Autoregressive Integrated Moving Averages (ARIMA) modelling

techniques to produce seasonally adjusted estimates. ARIMA modelling is a technique

that can be used to extend original estimates beyond the end of a time series. The

extended values are temporary, intermediate values that are used internally to improve

seasonal adjustment. They do not affect the original estimates and are discarded at the

end of the seasonal adjustment process. The use of ARIMA modelling generally results in

a reduction in revisions to the seasonally adjusted estimates when subsequent data

becomes available. ARIMA modelling in the WPI was introduced in the June quarter 2008.

For more information on the details of ARIMA modelling see the feature article 'Use of

ARIMA modelling to reduce revisions' in the October 2004 issue of Australian Economic

Indicators (cat. no. 1350.0).

ARIMA MODELLING

37 The WPI uses a concurrent seasonal adjustment methodology to derive the

adjustment factors. This method uses the original time series available at each reference

period to estimate seasonal factors for the current and previous quarters. Concurrent

seasonal adjustment is technically superior to the more traditional method of reanalysing

seasonal patterns once each year because it uses all available data to fine tune the

estimates of the seasonal component each quarter. With concurrent analysis, the

seasonally adjusted series are subject to revision each quarter as the estimates of the

seasonal factors are improved. In most instances, the only significant revisions will be to

the combined adjustment factors for the previous quarter and for the same quarter in

the preceding year as the reference quarter (i.e. if the latest quarter is Qt then the most

significant revisions will be to Qt-1 and Qt-4). Seasonal patterns are also reanalysed when

there are known changes to regular events. This can lead to additional revisions.

CONCURRENT SEASONAL

ANALYSIS

A B S • W A G E P R I C E I N D E X • 6 3 4 5 . 0 • D E C 2 0 1 8 21

E X P L A N A T O R Y N O T E S continued

45 As well as the statistics included in this and related publications, the ABS may have

other relevant data available on request. Inquiries should be made to WPI

on Perth (08) 9360 5151 or the National Information and Referral Service on

1300 135 070.

AB S DA T A AV A I L A B L E ON

RE Q U E S T

43 Users may also wish to refer to the following publications which are available free

on the ABS website <http://www.abs.gov.au>:

Wage Price Index: Concepts, Sources and Methods, (cat. no. 6351.0.55.001)

Information Paper: Update on ANZSIC 2006 Implementation for Labour Price

Index, Australia, 2009, (cat. no. 6345.0.55.001)

Consumer Price Index, Australia, (cat. no. 6401.0)

House Price Indexes, Eight Capital Cities, (cat. no. 6416.0)

International Trade Price Indexes, Australia, (cat. no. 6457.0)

Producer Price Indexes, Australia, (cat. no. 6427.0)

Australian Consumer Price Index: Concepts, Sources and Methods,

(cat. no. 6461.0)

Producer and International Trade Price Indexes: Concepts, Sources and Methods,

(cat no. 6429.0)

Australian Labour Market Statistics, (cat. no. 6105.0)

44 Current publications and other products released by the ABS are listed on the ABS

website <http://www.abs.gov.au>. The ABS also issues a daily Release Advice on the

website which details products to be released in the week ahead.

RE L A T E D PU B L I C A T I O N S

22 A B S • W A G E P R I C E I N D E X • 6 3 4 5 . 0 • D E C 2 0 1 8

E X P L A N A T O R Y N O T E S continued

(a) See paragraphs 23-28 of the Explanatory Notes.(b) Components may not sum to 100.0 due to rounding.(c) Classified according to the Australian and New Zealand Standard Industrial

Classification (ANZSIC), 2006 (cat. no. 1292.0). (d) For the Public sector, these industries are combined and included in the 'All

industries' total.

100.0100.0100.0All industries

2.8(d)3.5Other services

1.1(d)1.3Arts and recreation services

12.624.69.1Health care and social assistance

9.928.74.4Education and training

8.434.20.8Public administration and safety

5.6(d)7.1Administrative and support services

10.71.413.5Professional, scientific and technical services

1.8(d)2.3Rental, hiring and real estate services

5.5(d)6.8Financial and insurance services

1.8(d)2.1Information media and telecommunications

4.8(d)5.0Transport, postal and warehousing

3.7(d)4.7Accommodation and food services

6.2(d)8.0Retail trade

4.6(d)5.9Wholesale trade

9.0(d)11.5Construction

1.43.00.9Electricity, gas, water and waste services

6.9(d)8.9Manufacturing

3.3(d)4.2Mining

Sector by broad industry group(c)

100.0100.0100.0Australia

2.45.41.5Australian Capital Territory

1.22.01.0Northern Territory

1.62.31.4Tasmania

11.710.911.9Western Australia

5.77.15.3South Australia

18.619.818.2Queensland

25.723.326.5Victoria

33.029.334.1New South Wales

Sector by State/Territory

100.022.877.2Australia

Australia by sector

%%%

TotalPublicPrivate

DISTR IBUT ION OF EMPLOYERS ' EXPENDITURE ON WAGES, TOTALEARNINGS (a) (b )A1

AS UP D A T E D DE C E M B E R

QU A R T E R 20 1 8

A B S • W A G E P R I C E I N D E X • 6 3 4 5 . 0 • D E C 2 0 1 8 23

A P P E N D I X D I S T R I B U T I O N O F E X P E N D I T U R E O N W A G E S

(a) See paragraphs 23-28 of the Explanatory Notes.(b) Components may not sum to 100.0 due to rounding.(c) Classified according to the Australian and New Zealand Standard Industrial

Classification (ANZSIC), 2006 (cat. no. 1292.0). (d) For the Public sector, these industries are combined and included in the 'All

industries' total.

100.0100.0100.0All industries

2.7(d)3.5Other services

1.2(d)1.3Arts and recreation services

12.824.59.3Health care and social assistance

10.229.34.5Education and training

8.534.10.8Public administration and safety

5.5(d)7.1Administrative and support services

11.01.413.8Professional, scientific and technical services

1.8(d)2.3Rental, hiring and real estate services

5.6(d)7.0Financial and insurance services

1.9(d)2.1Information media and telecommunications

4.6(d)4.8Transport, postal and warehousing

3.8(d)4.9Accommodation and food services

6.3(d)8.2Retail trade

4.5(d)5.9Wholesale trade

8.3(d)10.7Construction

1.32.90.9Electricity, gas, water and waste services

6.6(d)8.6Manufacturing

3.3(d)4.3Mining

Sector by broad industry group(c)

100.0100.0100.0Australia

2.45.41.5Australian Capital Territory

1.22.01.0Northern Territory

1.62.31.4Tasmania

11.610.911.8Western Australia

5.77.15.3South Australia

18.419.818.1Queensland

25.823.326.5Victoria

33.229.234.4New South Wales

Sector by State/Territory

100.023.176.9Australia

Australia by sector

%%%

TotalPublicPrivate

DISTR IBUT ION OF EMPLOYERS ' EXPENDITURE ON WAGES,ORDINARY TIME EARNINGS (a) (b)A2

AS UP D A T E D DE C E M B E R

QU A R T E R 20 1 8 continued

24 A B S • W A G E P R I C E I N D E X • 6 3 4 5 . 0 • D E C 2 0 1 8

A P P E N D I X D I S T R I B U T I O N O F E X P E N D I T U R E O N W A G E S continued

The period to which the expenditure weights relate.Weight reference period

Measures changes in the price of wages.Wage price index

A measure of the underlying direction of a series (see Explanatory Notes paragraphs39–40, 42).

Trend

Measures quarterly change in combined ordinary time and overtime hourly rates of pay(see Explanatory Notes paragraph 10).

Total hourly rates of pay index

Process of removing systematic calendar related effects from the original series (seeExplanatory Notes paragraphs 32–38, 42).

Seasonal adjustment

Public sector comprises local government authorities and all government departmentsand agencies created by, or reporting to, the Commonwealth, or state/territoryparliaments. The private sector comprises all organisations not classified as public sector.

Sector

The reference date for this survey is the last pay period ending on or before the thirdFriday of the middle month of the quarter, except for bonuses which are collected inrespect to those paid during the three month period ending on the third Friday of themiddle month of the quarter.

Reference date

The number of hours paid for in excess of ordinary time hours.Overtime hours

Award, standard or agreed hours of work paid for at the ordinary rate.Ordinary time hours

Measures quarterly change in ordinary time hourly rates of pay (see Explanatory Notesparagraphs 7 and 8).

Ordinary time hourly rates ofpay index

Classified according to the Australian and New Zealand Standard IndustrialClassification (ANZSIC), 2006 (cat. no. 1292.0).

Industry

The period for which an index series is given the value of 100.0. The current indexreference period for the WPI is the 2008–09 financial year.

Index reference period

Measures the ratio of the price of labour between the commencement of the index seriesand a later period.

Index number

A measure of the relative importance of each elementary aggregate, based on employers’total expenditure on wages and salaries. Expenditure weights are used to combineelementary aggregate indexes into broader level indexes.

Expenditure weights

Organisation with one or more employees.Employer

A job for which the occupant receives remuneration in wages, salary, payment in kind, orpiece rates.

Employee job

The finest aggregations of jobs, in terms of state/territory, sector and industry group, forwhich expenditure weights are available.

Elementary aggregates

Payments made to a job occupant that are in addition to regular wages and salaries andwhich generally relate to the job occupant’s, or the organisation’s, performance. In theWPI, the term 'bonuses' refers to bonuses and commissions.

Bonuses

A B S • W A G E P R I C E I N D E X • 6 3 4 5 . 0 • D E C 2 0 1 8 25

G L O S S A R Y

www.abs.gov.auWEB ADDRESS

All statistics on the ABS website can be downloaded freeof charge.

F R E E A C C E S S T O S T A T I S T I C S

Client Services, ABS, GPO Box 796, Sydney NSW 2001POST

1300 135 211FAX

client.services@abs.gov.auEMAIL

1300 135 070PHONE

Our consultants can help you access the full range ofinformation published by the ABS that is available free ofcharge from our website. Information tailored to yourneeds can also be requested as a 'user pays' service.Specialists are on hand to help you with analytical ormethodological advice.

I N F O R M A T I O N A N D R E F E R R A L S E R V I C E

www.abs.gov.au the ABS website is the best place fordata from our publications and information about the ABS.

INTERNET

F O R M O R E I N F O R M A T I O N . . .

© Commonwealth of Australia 2019Produced by the Australian Bureau of Statistics

63

45

.0

•

WA

GE

PR

IC

E IN

DE

X,

AU

ST

RA

LI

A

• D

ec

em

be

r Q

ua

rt

er

20

18

ISSN 1832–3871