Remuneration Trends & Insights
Remuneration movements and forecasts
- 1 Quarter 4 - 2023
- 2 Quarter 3 - 2023
- 3 Quarter 2 - 2023
- 4 Quarter 1 - 2023
Remuneration trends overview
The median employment cost movement for the fourth quarter of 2023 was 4.5%, and was above the inflation rate of 4.0% (seasonally adjusted) recorded by the Australian Bureau of Statistics (ABS) in the year to December 2023. The official unemployment rate increased to 3.9% at the end of the fourth quarter. GDP growth remained positive, but at a slower rate.
4.5% Employment cost movement
The median employment cost movement for same incumbents (the same people, in the same role and at the same organisation) in the general market was 4.5% in the fourth quarter of 2023. Employment cost includes base salary, cash allowances, benefits and fringe benefits tax (FBT), but excludes variable reward.
3.5% - 4.5% Total salary increase forecast for 2024
Mercer's Salary Budget Snapshot collects ongoing insight into remuneration planning intentions. Total salary refers to annual budgeted amount for employee salary increases, including promotional increases, adjustments for inflation, mandatory increases, indexation and merit increases. The latest total salary increase forecasted for 2024 ranged from 3.5% (25th percentile) to 4.5% (75th percentile); the median was 4.0%.
Median same incumbent movement by industry [Q4 2023]
Unless otherwise noted, figures represent the percentage change in total employment cost for an employee in the same role in the same company over a twelve month period. This is referred to as a same incumbent movement. Results shown below represent the median or 50th percentile of movements for different industries in the Australian market.
Remuneration trends overview
The median employment cost movement for the third quarter of 2023 was 4.5%, and was lower than the inflation rate of 5.3% (seasonally adjusted) recorded by the Australian Bureau of Statistics (ABS) in the year to September 2023. The official unemployment rate remained at 3.6% at the end of the third quarter. GDP growth has slowed but remained positive. The gap between the Wage Price Index and the Consumer Price Index has been narrowed due to slowdown in CPI growth.
4.5% Employment cost movement
The median employment cost movement for same incumbents (the same people, in the same role and at the same organisation) in the general market was 4.5% in the third quarter of 2023. Employment cost includes base salary, cash allowances, benefits and fringe benefits tax (FBT), but excludes variable reward.
3.5% - 4.5% Total salary increase forecast for 2024
Mercer's Salary Budget Snapshot collects ongoing insight into remuneration planning intentions. Total salary refers to annual budgeted amount for employee salary increases, including promotional increases, adjustments for inflation, mandatory increases, indexation and merit increases. The latest total salary increase forecasted for 2024 ranged from 3.5% (25th percentile) to 4.5% (75th percentile); the median was 4.0%.
Median same incumbent movement by industry [Q3 2023]
Unless otherwise noted, figures represent the percentage change in total employment cost for an employee in the same role in the same company over a twelve month period. This is referred to as a same incumbent movement. Results shown below represent the median or 50th percentile of movements for different industries in the Australian market.
Remuneration trends overview
The median employment cost movement for the second quarter of 2023 was 4.0%, and was lower than the inflation rate of 6.1% recorded by the Australian Bureau of Statistics (ABS) in the year to June 2023. The official unemployment rate remained at 3.5% at the end of the second quarter. GDP growth has slowed but remained positive, and the Wage Price Index has increased although it remained low by comparison to inflation.
4.0% Employment cost movement
The median employment cost movement for same incumbents (the same people, in the same role and at the same organisation) in the general market was 4.0% in the second quarter of 2023. Employment cost includes base salary, cash allowances, benefits and fringe benefits tax (FBT), but excludes variable reward.
3.5% - 5.0% Total salary increase forecast for 2024
Mercer's Salary Budget Snapshot collects ongoing insight into remuneration planning intentions. Total salary refers to annual budgeted amount for employee salary increases, including promotional increases, adjustments for inflation, mandatory increases, indexation and merit increases. The latest total salary increase forecasted for 2024 ranged from 3.5% (25th percentile) and 5.0% (75th percentile); the median was 4.0%.
Median same incumbent movement by industry [Q2 2023]
Unless otherwise noted, figures represent the percentage change in total employment cost for an employee in the same role in the same company over a twelve month period. This is referred to as a same incumbent movement. Results shown below represent the median or 50th percentile of movements for different industries in the Australian market.
Remuneration trends overview
The median employment cost movement for the first quarter of 2023 was 3.5%, and was lower than the inflation rate of 7.1% recorded by the Australian Bureau of Statistics (ABS) in the year to March 2023. The official unemployment rate remained at 3.5% at the end of the first quarter. GDP growth has slowed but remained positive, and the Wage Price Index has grown although it remained low by comparison to inflation.
3.5% Employment cost movement
The median employment cost movement for same incumbents (the same people, in the same role and at the same organisation) in the general market was 3.5% in the first quarter of 2023. Employment cost includes base salary, cash allowances, benefits and fringe benefits tax (FBT), but excludes variable reward.
3.5% - 5.0% Total salary increase budget for 2023
Mercer's Salary Budget Snapshot collects ongoing insight into remuneration planning intentions. Total salary refers to annual budgeted amount for employee salary increases, including promotional increases, adjustments for inflation, mandatory increases, indexation and merit increases. The latest total salary increase budgeted for 2023 ranged from 3.5% (25th percentile) and 5.0% (75th percentile); the median was 4.0%.
Median same incumbent movement by industry [Q1 2023]
Unless otherwise noted, figures represent the percentage change in total employment cost for an employee in the same role in the same company over a twelve month period. This is referred to as a same incumbent movement. Results shown below represent the median or 50th percentile of movements for different industries in the Australian market.