Hourly earnings were highest for managers in May 2023, according to new figures from the Australian Bureau of Statistics (ABS).

Managers had the highest average hourly earnings ($67.20) followed by professionals($60.60). Sales workers and labourers had the lowest of all occupations ($30.90 and $32.20)compared to an overall hourly average of $44.00.

In addition to important earnings insights across a range of employer and employee characteristics and arrangements, this data provides key insights into the gender pay gap in Australia and how it is changing over time.

Bjorn Jarvis, ABS head of labour statistics, said: “Analysing the difference between male and female earnings is complex and there is no single measure that can provide a complete picture. Hourly earnings comparisons are particularly useful in understanding gender pay differences beyond weekly earnings measures, given women are more likely to work part-time than men.

"On average, hourly earnings were $46.10 for men, compared to $42.00 for women,  a difference of 8.9%. This gap has narrowed from 9.7% in May 2021.

Men continued to earn more per hour than women in all eight major occupation groups.

"In dollar terms, the difference between average hourly earnings for men and women was greatest for managers ($14.10 per hour) and technicians and trades workers ($8.20). It was lowest for sales workers ($2.30),” Mr Jarvis said.

“In percentage terms, the difference was greatest for managers (19%), and lowest for sales workers (7%) and professionals (10%)."

In weekly terms, employees earned an average of $1490 in May 2023, with men earning an average of $1731 and women $1261.

“The majority of full-time employees are men (61%) with higher average earnings ($2074 a week) than full-time women ($1815 a week),” Mr Jarvis said.

“The majority of all part-time employees are women (69%) with higher average weekly earnings than part-time men ($817 compared to $759). This reflects the greater use of part-time working arrangements by women in higher paying jobs, compared to men.”

Distributional data showed that the top-earning quarter of employees in Australia earned more than $1956 a week in May 2023, while the lowest-earning quarter received less than $785. 

Median weekly earnings were $1,300, with men earning $1,509 and women $1,130.

Setting pay

The most common method of setting pay in May 2023 was an individual arrangement (39%, up from 38% in 2021), followed by a collective agreement (34%, down from 35% in 2021).

Less than a quarter of employees were paid according to an award (23%). A small proportion of employees were owner-managers of incorporated enterprises (4%) who set their own pay. Both of these were similar percentages to 2021.

Men were more likely to have their pay set by an individual arrangement (45%), while a collective agreement was the most common method for women (38%).