Published: December 2025
Australian employers paid $1.219 trillion in wages and salaries during the 2024-25 financial year, according to the Australian Bureau of Statistics Monthly Employee Earnings Indicator. With approximately 14.7 million employed Australians, that translates to an average of $82,900 per worker across the economy.
That average masks enormous variation. A mining worker in the Pilbara and a casual hospitality worker in Sydney both contribute to the same $1.219 trillion total, but their individual contribution differs by a factor of three or more. Understanding where payroll concentrates, how it distributes across industries and business sizes, and what drives the seasonal patterns provides genuine insight into how Australia's labour market actually functions.
This data represents gross payments before tax and deductions, including regular wages, overtime, bonuses, and allowances. It excludes employer superannuation contributions and severance payments.
The headline figure becomes more meaningful when examined from multiple angles.
Per Employed Person:
Per Employing Business:
Per Month:
The $82,900 average per worker sits above the median, reflecting the influence of high earners in mining, finance, and professional services pulling the average upward. The median full-time adult earnings is closer to $75,000-78,000 when measured through other ABS surveys.
The $1.226 million average per employing business is heavily skewed by large employers. Woolworths, Coles, the major banks, and government departments each process billions annually. The median employing business runs payroll closer to $200,000-$400,000.
Monthly payroll fluctuates significantly, driven by bonus cycles, seasonal patterns, and one-off events.
The ABS reports that monthly wages reached $108.8 billion in September 2025, the highest monthly figure on record. This September peak reflects concentrated annual bonus payments in Mining, Financial Services, Manufacturing, and Professional Services. Six industries account for roughly 60 per cent of the September spike.
For Mining specifically, annual production bonuses, retention payments, and profit-sharing arrangements concentrate in September, coinciding with end-of-financial-year results for companies operating on June year-ends. A mining company with $2 million monthly payroll might see that jump to $3.5 million in September when bonuses land.
The pattern repeats in February and March at smaller scale, driven by calendar year-end bonuses in multinational companies and sales incentive payments.
December typically records lower figures. Reduced working days, holiday shutdowns, and the absence of major bonus cycles create a natural trough. January rebounds as the full workforce returns.
Understanding these cycles matters for cash flow planning, superannuation remittance timing, and payroll tax calculations. Treating payroll as a flat monthly figure misses seasonality that affects working capital requirements throughout the year.
The public sector accounts for $249.5 billion of total payroll, representing 20.5 per cent of all wages and salaries. This share grew 7.6 per cent year-on-year, outpacing overall market growth of 5.9 per cent.
By Level of Government:
State governments dominate because they employ health workers, teachers, police, transport workers, and public servants across each jurisdiction. The Commonwealth's wage bill grew fastest at 9.5 per cent, partly reflecting expanded federal programs and agency staffing.
Public Sector Per Employee:
With approximately 2.6 million public sector employees, the average public sector wage is roughly $96,000, notably higher than the $82,900 economy-wide average. This premium reflects several factors: the concentration of professional roles, enterprise bargaining delivering above-inflation outcomes, and lower representation of casual and part-time work compared to the private sector.
Public sector payroll concentrates in three industries:
Together, these three industries represent nearly 90 per cent of public sector wages.
Health Care and Social Assistance leads all industries with 14.6 per cent of total payroll, translating to approximately $178 billion annually.
Per Employee Context:
With roughly 2.1 million workers in Health Care and Social Assistance, the industry average sits around $85,000 per employee. This is marginally above the national average despite the industry's reputation for lower wages in aged care and disability services. The figure reflects the mix of highly paid medical professionals alongside lower-paid care workers.
The sector's contribution to payroll growth was substantial. Health Care and Social Assistance's rise of $14.8 billion from the previous year accounted for 21.6 per cent of the total increase in wages across all industries. More than one in five dollars of additional payroll in Australia went to this single sector.
Industry Comparison (estimated per-employee averages):
High Wage Industries:
Moderate Wage Industries:
Lower Wage Industries:
The Mining premium is striking. With fewer than 300,000 workers but approximately $50-60 billion in annual payroll, the sector pays roughly double the national average. This reflects the skill premium for remote work, retention payments to prevent turnover, and profit-sharing arrangements tied to commodity prices.
Accommodation and Food Services sits at the opposite extreme. High casualisation, significant part-time work, younger workforce demographics, and penalty rates that still leave total earnings well below average combine to produce the lowest per-employee figures of any major industry.
Not all industries are growing equally. Annual growth ranges from 3.7 per cent in Mining to 11.9 per cent in Electricity, Gas, Water and Waste Services.
Fastest Growing:
Slowest Growing:
Mining's moderation is notable. After years of commodity boom-driven expansion, the sector appears to be entering a more stable phase. Employment remains steady but the explosive wage growth of previous cycles has flattened. Companies are still paying well above average, but the rate of increase has slowed.
Accommodation and Food Services shows the weakest growth among service industries. The ABS notes the industry saw lower annual growth compared to a year earlier, reflecting weaker economic conditions and reduced consumer demand. Australians are cutting discretionary spending on dining and travel, and it shows in the payroll data.
The Electricity, Gas, Water and Waste Services growth rate of 11.9 per cent partly reflects the energy transition. New investment in renewables, grid upgrades, and the expansion of waste management services is driving hiring and wage growth in a sector that already paid above average.
Payroll distribution is heavily concentrated in larger businesses. Understanding this concentration provides context for how different segments of the economy function.
Estimated Distribution:
Micro businesses (1-4 employees):
Small businesses (5-19 employees):
Medium businesses (20-199 employees):
Large businesses (200+ employees):
The concentration becomes stark at the top. Australia's largest private employers each process payrolls in the billions:
A single Woolworths pay run moves more money than most small businesses will see in a decade of operations.
The Small Business Wage Gap:
The per-employee figures reveal an interesting pattern. Micro businesses pay less per employee ($60,000-$70,000) than larger businesses ($85,000-$95,000). Several factors drive this gap:
First, small businesses concentrate in lower-wage industries. Retail, hospitality, and personal services skew heavily toward micro and small employers, while mining, finance, and utilities skew toward larger employers.
Second, small businesses employ more part-time and casual workers. A cafe with four staff might have one full-timer and three part-timers, dragging the average down even if hourly rates are comparable.
Third, small businesses in the same industry often pay less than large competitors. A small accounting firm typically pays junior staff less than the Big Four, even for similar roles.
Fourth, owner-operators complicate the picture. Many micro businesses include working owners whose drawings don't appear in payroll figures, making the employee count artificially high relative to reported wages.
New South Wales accounts for approximately one-third of all wages and salaries paid, reflecting Sydney's role as Australia's largest city and financial centre.
State-Level Distribution:
Per Capita Perspective:
Western Australia's 11 per cent share appears elevated relative to its 10 per cent population share. The mining sector explains the discrepancy. With average mining wages 60-80 per cent above the national figure, Western Australia's concentration of resources employment lifts the state's payroll share above its population weight.
New South Wales and Victoria both have payroll shares roughly proportional to population, though NSW slightly over-indexes due to Sydney's financial services concentration.
Growth Patterns:
Annual growth rates reveal regional dynamics. Western Australia recorded 7.0 per cent growth to September 2024, outpacing most eastern states. Queensland reached 8.0 per cent. Tasmania and the ACT both exceeded 10 per cent, partly driven by public sector wage increases.
New South Wales and Victoria showed more modest growth at 5.3 per cent and 6.3 per cent respectively. These mature markets have less room for expansion and face higher cost bases.
The $1.219 trillion excludes employer superannuation contributions. Adding the 11.5 per cent Superannuation Guarantee brings total compensation of employees closer to $1.36 trillion.
True Cost Per Employee:
A $70,000 salary costs $78,050 in direct payments when super is included. But that understates the true employment cost:
For businesses calculating fully-loaded costs including recruitment, training, equipment, and overhead allocation, the figure climbs higher still.
Superannuation Trajectory:
Super increased from 10 per cent in 2021 to 11.5 per cent in 2024-25, with the scheduled increase to 12 per cent arriving in July 2025. Each half-percentage point increase adds roughly $6 billion to total employment costs nationally, with no corresponding productivity gain unless wages adjust downward to compensate.
Several structural features emerge from examining the payroll data in detail.
Healthcare Dominance is Accelerating:
With 14.6 per cent of total payroll and 21.6 per cent of payroll growth, Health Care and Social Assistance is becoming the anchor industry of Australia's labour market. The ageing population ensures sustained demand. The NDIS continues expanding. Healthcare inflation exceeds general inflation. This sector will likely account for an even larger share of total payroll by 2030.
The Public Sector Provides Stability:
One in five payroll dollars flows through government at some level. Public sector wages grow more predictably than private sector wages, providing a baseline that moderates overall volatility. In downturns, this stability becomes more valuable; in booms, it creates less upside.
Mining Punches Above Its Weight:
Just 1.5-2 per cent of employment generates 4-5 per cent of payroll. This concentration creates both opportunity and risk. Resource-dependent regions enjoy higher average wages but face greater exposure to commodity cycles. The current moderation in mining wage growth (3.7 per cent versus 5.9 per cent economy-wide) may signal a new phase of stability rather than continued expansion.
Service Economy Dominance is Complete:
Every fast-growing industry is service-based. Healthcare, public administration, professional services, financial services. Traditional goods-producing sectors like manufacturing, agriculture, and mining are stable or declining as shares of total employment and payroll. Australia's economy has fully transitioned to services as the dominant mode of economic activity.
Small Business is Squeezed:
The data confirms what many small business owners experience: employment costs relative to revenue are higher for small businesses than for large ones. Large employers benefit from scale in payroll processing, HR management, recruitment, and training. They can spread compliance costs across millions in payroll. Small businesses face the same regulatory requirements with a fraction of the resources.
Understanding the payroll cycle helps with cash flow planning and resource allocation.
High Payroll Months:
Lower Payroll Months:
Consistent Months:
For businesses in bonus-heavy industries, September working capital requirements can exceed normal months by 50-75 per cent. Planning for this seasonality avoids cash flow stress.
Several trends appear likely to shape payroll volumes in coming years.
Continued Healthcare Expansion:
With Australia's population ageing and the NDIS continuing its rollout, Health Care and Social Assistance will likely maintain or increase its leading share. This sector's 21.6 per cent contribution to growth may be a baseline rather than a peak.
Public Sector Wage Pressure:
Enterprise agreement negotiations across federal and state governments have delivered above-inflation outcomes recently. Combined with election-cycle pressures to maintain service levels, the public sector's 20 per cent share may edge toward 21-22 per cent.
Energy Transition Employment:
Electricity, Gas, Water and Waste Services' 11.9 per cent growth rate reflects investment in renewables and grid infrastructure. This should continue as Australia pursues emissions reduction targets, though employment will eventually stabilise once major projects complete.
Technology and Productivity:
Automation, AI, and process improvement could moderate headcount growth while maintaining output. This might reduce total payroll growth even as per-employee wages increase. The productivity gains (or lack thereof) from technology adoption will significantly influence total payroll trajectory.
Award and Regulatory Changes:
Minimum wage increases, award modernisation, and industrial relations changes will affect payroll composition. The shift toward more secure employment conditions may increase per-employee costs while reducing casual headcount.
What is Australia's total payroll volume?
Australian employers paid $1.219 trillion in wages and salaries during the 2024-25 financial year, according to ABS data. This represents gross payments before tax and deductions, including regular wages, overtime, bonuses, and allowances. It excludes employer superannuation contributions and severance payments. The figure grew 5.9 per cent from the previous year.
What is the average wage per employee in Australia?
Dividing the $1.219 trillion total payroll by 14.7 million employed persons gives an average of $82,900 per worker. This sits above the median due to high earners in mining, finance, and professional services pulling the average upward. The median full-time adult earnings is closer to $75,000-78,000.
How much does the public sector contribute to Australian payroll?
The public sector accounts for $249.5 billion annually, representing 20.5 per cent of total wages and salaries. State governments are the largest public employers at $191.1 billion, followed by the Commonwealth at $40.9 billion and local governments at $17.6 billion. The average public sector wage of approximately $96,000 exceeds the economy-wide average of $82,900.
Which industry has the largest share of Australian payroll?
Health Care and Social Assistance leads all industries with 14.6 per cent of total payroll, approximately $178 billion annually. The sector also contributed 21.6 per cent of total payroll growth, adding $14.8 billion in the most recent year. With roughly 2.1 million workers, the industry average is around $85,000 per employee.
What is the average payroll per Australian business?
With approximately 994,000 employing businesses processing $1.219 trillion, the average payroll per business is $1.226 million annually. However, this is heavily skewed by large employers. More typical figures are $200,000-$250,000 for micro businesses (1-4 employees), $875,000-$1 million for small businesses (5-19 employees), and $4.1-$4.6 million for medium businesses (20-199 employees).
Why does payroll spike in September?
September sees the highest monthly payroll due to concentrated annual bonus payments. Mining companies pay production bonuses and profit-sharing tied to June year-end results. Financial institutions pay performance bonuses in the August-September window. Six industries account for approximately 60 per cent of the September spike, which reached a record $108.8 billion in September 2025.
What is the average wage in the mining industry?
Mining workers earn approximately $140,000-$160,000 on average, roughly double the national average of $82,900. With fewer than 300,000 workers but approximately $50-60 billion in annual payroll, the sector pays the highest average wages of any major industry. This reflects skill premiums, remote work compensation, and profit-sharing arrangements.
How does payroll distribute across business sizes?
Large businesses (200+ employees) account for approximately 40-43 per cent of total payroll despite representing less than 1 per cent of all businesses. Medium businesses (20-199 employees) account for 25-27 per cent, small businesses (5-19 employees) for 18-20 per cent, and micro businesses (1-4 employees) for 12-14 per cent.
Which industries have the fastest payroll growth?
Electricity, Gas, Water and Waste Services led with 11.9 per cent growth, driven by energy transition investment. Public Administration and Safety grew 8.1 per cent, Health Care and Social Assistance grew 7.8 per cent, and Construction grew 7.1 per cent. Mining had the slowest growth at 3.7 per cent, while Accommodation and Food Services grew just 2.8 per cent.
How does superannuation affect total employment costs?
The $1.219 trillion payroll figure excludes employer superannuation. Adding the 11.5 per cent Superannuation Guarantee brings total compensation closer to $1.36 trillion. A $70,000 salary actually costs $78,050 in direct payments before other on-costs. Superannuation continues rising to 12 per cent by July 2025.
What is the lowest-paying industry in Australia?
Accommodation and Food Services has the lowest average wages at approximately $45,000-$55,000 per employee. High casualisation, significant part-time work, younger workforce demographics, and concentration of entry-level roles combine to produce the lowest per-employee figures of any major industry. The sector's payroll growth of 2.8 per cent also trails the national average.
How much do small businesses pay per employee compared to large businesses?
Micro businesses (1-4 employees) pay approximately $60,000-$70,000 per employee on average, while large businesses (200+ employees) pay $85,000-$95,000. This gap reflects industry concentration (small businesses cluster in lower-wage sectors), higher part-time and casual employment in small businesses, and wage premiums that large employers offer for equivalent roles.
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