---
title: "Tech, Retail and Hospitality Lead Australia's 2027 Pay…"
canonical: "https://www.metaintro.com/blog/australia-salary-budgets-3-6-percent-2027-aon"
language: "en"
author: "drashtigarach"
published: "2026-09-30T13:08:22.000Z"
modified: "2026-09-30T13:24:21.385Z"
---

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# Tech, Retail and Hospitality Lead Australia's 2027 Pay Budgets at 4 Percent

Australia's median 2027 salary budget is 3.6% in Aon's study, with tech, retail and hospitality at 4%. How it compares with 3.2% wage growth and how to ask.

[![Drashti Garach](https://cdn.metaintro.com/rs:fill:40:40/q:72/plain/images/5719d740-e510-42bc-8017-e040d145f35f_1766029465094.png)Drashti Garach @DrashtiGarach](/blog/author/drashtigarach)

[September 30, 2026](/blog/archive/2026/09)12 min read

![A bright retail store with folded clothes on shelves and garments on rails before opening](https://cdn.metaintro.com/rs:fill:1200:675/q:78/plain/images/final-10405.jpg)

[https://x.com/intent/tweet?text=Tech%2C%20Retail%20and%20Hospitality%20Lead%20Australia's%202027%20Pay%20Budgets%20at%204%20Percent&url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Faustralia-salary-budgets-3-6-percent-2027-aon](https://x.com/intent/tweet?text=Tech%2C%20Retail%20and%20Hospitality%20Lead%20Australia's%202027%20Pay%20Budgets%20at%204%20Percent&url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Faustralia-salary-budgets-3-6-percent-2027-aon)[http://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Faustralia-salary-budgets-3-6-percent-2027-aon](http://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Faustralia-salary-budgets-3-6-percent-2027-aon)[https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Faustralia-salary-budgets-3-6-percent-2027-aon&title=Tech%2C%20Retail%20and%20Hospitality%20Lead%20Australia's%202027%20Pay%20Budgets%20at%204%20Percent](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Faustralia-salary-budgets-3-6-percent-2027-aon&title=Tech%2C%20Retail%20and%20Hospitality%20Lead%20Australia's%202027%20Pay%20Budgets%20at%204%20Percent)[mailto:?subject=Tech%2C%20Retail%20and%20Hospitality%20Lead%20Australia's%202027%20Pay%20Budgets%20at%204%20Percent&body=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Faustralia-salary-budgets-3-6-percent-2027-aon](mailto:?subject=Tech%2C%20Retail%20and%20Hospitality%20Lead%20Australia's%202027%20Pay%20Budgets%20at%204%20Percent&body=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Faustralia-salary-budgets-3-6-percent-2027-aon)

Australian employers plan to lift salaries by a median of [3.6% in 2027](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027), slightly above the [3.5% median increase recorded in 2026](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027), and technology along with retail, eCommerce, wholesale and hospitality sit at the top of the range at [4%](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027). The figures come from [Aon's Australian salary study](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027), which covered [500 organisations](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027) surveyed between July and September. For [Metaintro](https://www.metaintro.com) readers heading into a pay review, the more useful story sits underneath the headline, in what wages actually did over the past year, what the minimum award rates now guarantee and where the money inside each budget is going.

## What Did the Aon Study Find for Next Year?

Australian organisations are budgeting for median salary increases of [3.6% in 2027](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027), which is slightly above the [3.5% median recorded in 2026](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027). The survey points to [steady overall pay settings rather than a broad uplift](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027) in wage budgets.

The Australian study was run between [July and September](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027) and its results are medians unless marked otherwise. Sample sizes [varied by measure](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027), with responses drawn from 500 organisations across the country.

[Aon's global Salary Increase and Turnover Study](https://www.aon.com/en/capabilities/human-capital-analytics/radford-mclagan-compensation-database/salary-increase-and-turnover-study), which Aon runs [three times a year](https://www.aon.com/en/capabilities/human-capital-analytics/radford-mclagan-compensation-database/salary-increase-and-turnover-study), tracks [budgeted overall and merit-based salary increases](https://www.aon.com/en/capabilities/human-capital-analytics/radford-mclagan-compensation-database/salary-increase-and-turnover-study) along with voluntary and involuntary turnover rates and promotion practices. The headline budget figure [may reveal less about employee pay outcomes](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027) than in previous years, CFOtech Australia notes.

## Which Industries Are Budgeting the Most, and Which Sit Near the Median?

Projected median salary increases across industries range from [3.5% to 4%](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027). Technology, along with retail, eCommerce, wholesale and hospitality, sits at the [top end at 4%](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027).

Most other sectors sit [close to the national median of 3.6%](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027), which CFOtech Australia reads as employers not diverging widely on total salary budgets. The bigger difference lies in [allocation](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027), with businesses using reward decisions to address retention risks and labour shortages in targeted parts of their workforces.

Financial services had the highest median voluntary turnover in the survey at [15.6%](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027), followed by consulting, business and community services at [14.4%](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027). Energy sat at the other end with median voluntary turnover of [8.7%](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027). Those turnover gaps help explain why some employers are [tying pay decisions more closely to attrition patterns](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027) rather than applying similar increases across the board, according to CFOtech Australia.

> Salary budgets remain relatively stable, but employers are becoming more deliberate about where they invest reward dollars, Aon's Yvette O'Reilly said, according to [the CFOtech Australia report](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027).

## Who Inside a Company Gets Priority From the Budget?

For Aon's Yvette O'Reilly, the focus has [shifted from the size of the budget to how employers use it](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027). Employers are directing more of their spending to [workers in critical roles, people with scarce skills and staff seen as central to business needs](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027).

The results suggest that similar headline pay budgets [can still produce very different outcomes for employees](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027), depending on where companies concentrate increases. Workers in priority functions [may receive larger increases than colleagues in less scarce roles](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027), even where the overall wage budget looks unchanged. Turnover data, talent availability and future workforce needs are [playing a larger role in salary planning](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027).

Rahul Chawla, Aon's head of Talent Solutions for Southeast Asia, said employers in that region were [directing spending toward priority skills](https://migrantimes.com/coporate-markets/26-09-2026/aon-projects-52-southeast-asia-salary-increase-budget-for-2027) as labour market pressures persisted. In Australia, with the total pool little changed, [how that pool is distributed](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027) is becoming the central question for both employers and staff, CFOtech Australia concludes.

## How Does a 3.6 Percent Budget Compare With What Wages Actually Did?

The [Wage Price Index rose 3.2%](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/latest-release) over the twelve months to the June quarter 2026, down from [3.4% a year earlier](https://www.abs.gov.au/media-centre/media-releases/annual-wage-growth-32-june-quarter-2026). Private sector wages rose [3.1% in annual terms](https://www.abs.gov.au/media-centre/media-releases/annual-wage-growth-32-june-quarter-2026), and public sector wages rose 3.4%. Annual wage growth in the public sector [outpaced growth in the private sector for the sixth quarter in a row](https://www.abs.gov.au/media-centre/media-releases/annual-wage-growth-32-june-quarter-2026). Across the states, [South Australia recorded the highest annual growth at 3.6%](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/latest-release) and the Northern Territory the lowest at 2.8%, while New South Wales had the lowest quarterly rise at 0.4%.

The index tracks the price of labour, [unaffected by compositional shifts](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/latest-release) in the workforce, hours worked or employee characteristics, and its headline series covers [total hourly rates of pay excluding bonuses](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/latest-release). Aon's figure, by contrast, is what organisations are [budgeting for median salary increases](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027) next year.

The spread of rises is the part to keep in mind. In the June quarter 2026, [over three quarters (+79%) of jobs](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/latest-release) recorded an annualised wage change of less than 4%, the largest share since June quarter 2022. The ABS chart behind that figure [excludes jobs that did not receive a wage change](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/latest-release) in the previous four quarters.

> Over three quarters (+79%) of jobs recorded an annualised wage change of less than 4%, up from June quarter 2025 (+75%), according to [the ABS Wage Price Index release](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/latest-release).

## Are Retail, Hospitality and Wholesale Wages Rising as Fast as the Budgets?

Over the year to the June quarter 2026, [retail trade wages rose 2.9%](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/latest-release) and accommodation and food services rose 2.8%, both below the all industries figure of 3.2%.

Wholesale trade came in at [3.2%](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/latest-release) over the year, and information media and telecommunications came in at 3.4%. Information media and telecommunications also recorded the [highest quarterly rise at 1.2%](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/latest-release) in the June quarter, while retail trade and other services recorded the lowest at 0.1%.

Health care and social assistance had the [highest through the year rise at 3.8%](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/latest-release), and professional, scientific and technical services had the lowest at 2.5%. Aon groups [retail, eCommerce, wholesale and hospitality together](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027), while the [ABS lists them separately](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/latest-release), so these are context rather than a test of the budgets.

## What Did the Fair Work Commission Set for Award Workers This Year?

From 1 July 2026, [minimum award wages increased by 4.75%](https://www.fairwork.gov.au/about-us/workplace-laws/annual-wage-review/annual-wage-review-2026), with the lowest rate in any award for ongoing employment set at no less than $1,004.90 a week or $26.44 an hour. Any entry-level rate that applies to the first 6 months or less of employment must be at least [$978.10 a week or $25.74 an hour](https://www.fairwork.gov.au/about-us/workplace-laws/annual-wage-review/annual-wage-review-2026).

The National Minimum Wage, which applies to employees not covered by an award or enterprise agreement, is now [$26.44 an hour, or $1,004.90 a week](https://www.fairwork.gov.au/about-us/workplace-laws/annual-wage-review/annual-wage-review-2026). The [Annual Wage Review 2026 decision](https://www.fwc.gov.au/hearings-decisions/major-cases/annual-wage-reviews/annual-wage-review-2026) was handed down at 10 am AEST on Tuesday 2 June 2026. The new rates apply from the [first full pay period starting on or after 1 July 2026](https://www.fairwork.gov.au/about-us/workplace-laws/annual-wage-review/annual-wage-review-2026).

Retail and accommodation and food services are among four sectors that together account for [more than two-thirds of all modern award-reliant employees](https://www.abc.net.au/news/2026-06-02/minimum-wage-increase-june-2026-australia/106746542), alongside health care and social assistance and administrative and support services. About [21% of all employees](https://www.abc.net.au/news/2026-06-02/minimum-wage-increase-june-2026-australia/106746542) in Australia are paid at a minimum award rate, amounting to almost 2.8 million people.

If you are covered by an enterprise agreement, the minimum wage increase may still reach you, because the base pay rate in an agreement [can't be less than the base pay rate in the relevant award](https://www.fairwork.gov.au/about-us/workplace-laws/annual-wage-review/annual-wage-review-2026). You can check which award covers you through the [list of awards and award summaries](https://www.fairwork.gov.au/about-us/workplace-laws/annual-wage-review/annual-wage-review-2026). From 1 July 2026, the [high income threshold](https://www.fairwork.gov.au/about-us/workplace-laws/annual-wage-review/annual-wage-review-2026), the amount an employee earns before the relevant award stops applying to them, increases to $190,100.

## How Does Australia Compare With Aon's Southeast Asia Figures?

Salary increase budgets across six Southeast Asian markets are projected at an overall [5.2% for 2027](https://migrantimes.com/coporate-markets/26-09-2026/aon-projects-52-southeast-asia-salary-increase-budget-for-2027) in Aon's 2026 Salary Increase and Turnover Study of more than 1,200 organisations. Singapore is projected at [4.1%](https://migrantimes.com/coporate-markets/26-09-2026/aon-projects-52-southeast-asia-salary-increase-budget-for-2027), while Vietnam leads at 6.7%. Indonesia is projected at [5.5%](https://migrantimes.com/coporate-markets/26-09-2026/aon-projects-52-southeast-asia-salary-increase-budget-for-2027), the Philippines at 5.3%, Malaysia at 4.8% and Thailand at 4.6%. Regional attrition [fell to 16.6% from 17.5%](https://migrantimes.com/coporate-markets/26-09-2026/aon-projects-52-southeast-asia-salary-increase-budget-for-2027) a year earlier.

The 2026 budget had been projected at [5.3%](https://migrantimes.com/coporate-markets/26-09-2026/aon-projects-52-southeast-asia-salary-increase-budget-for-2027) in Aon's previous regional study, and the actual 2026 increase came in at 5.0%. The Southeast Asian 2027 figures are [employer planning benchmarks rather than guaranteed pay increases](https://migrantimes.com/coporate-markets/26-09-2026/aon-projects-52-southeast-asia-salary-increase-budget-for-2027) for individual workers. Aon's Australian figure is likewise a budget, with organisations [budgeting for median salary increases of 3.6% in 2027](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027).

## What Are the Next Wage Data Points to Watch?

The Wage Price Index for the September quarter 2026 is due on [18 November 2026](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/latest-release), followed by the December quarter release on [17 February 2027](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/latest-release).

The September quarter begins in July, when the [award wage rise took effect from 1 July 2026](https://www.fairwork.gov.au/about-us/workplace-laws/annual-wage-review/annual-wage-review-2026). On the Aon side, the global study page lists a refresh with results due in [December 2026](https://www.aon.com/en/capabilities/human-capital-analytics/radford-mclagan-compensation-database/salary-increase-and-turnover-study).

## How Do You Use These Numbers in a Raise Conversation?

Start by knowing how your pay is set. In the June quarter 2026, jobs with pay set by [individual arrangement accounted for over half of quarterly wage growth (+53%)](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/latest-release). If your pay is set by an award, that award sets the [minimum pay rates and conditions of employment](https://www.fairwork.gov.au/about-us/workplace-laws/annual-wage-review/annual-wage-review-2026) for your industry or occupation, so any request is for pay above that floor.

Next, use the right benchmark for the right point. In the June quarter 2026, the [average hourly wage change among private sector jobs that got a change was 3.9%](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/latest-release), but only 10% of private sector jobs recorded a wage change that quarter. The [median budget of 3.6%](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027) tells you what a typical employer has set aside, and the 4% industry figures tell you where the pool is larger.

Then make the scarcity case. Employers are prioritising [critical roles, scarce skills and talent segments](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027) that are most important to future business performance, Aon's Yvette O'Reilly said. Employers also appear to be using rises to [support retention in roles where replacement is harder or more costly](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027). Build the request around how hard your role would be to fill. Work through [how to ask for a raise](https://www.metaintro.com/blog/how-to-ask-for-a-raise) before the meeting, and read the latest [Australian jobless rate](https://www.metaintro.com/blog/australia-unemployment-4-6-august-2026) before you test your value outside.

## What This Means for Job Seekers, and What Should You Do Next?

For job seekers, the headline budget is only the starting point. A pool that moves from [3.5% to 3.6%](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027) has [changed little](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027), and the real change is in how selectively employers hand it out, with more going to [critical roles and scarce skills](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027).

For retail and hospitality workers on awards, the legal floor already moved by [4.75% from 1 July 2026](https://www.fairwork.gov.au/about-us/workplace-laws/annual-wage-review/annual-wage-review-2026), so check your payslip against your award before anything else. For tech workers, the [4% budget](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027) is the top of the range, and in CFOtech Australia's analysis it [may reflect ongoing competition for specialist skills](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027).

Here is what we would do:

- **Check your floor.** Look up your award through the [Fair Work Ombudsman pages](https://www.fairwork.gov.au/about-us/workplace-laws/annual-wage-review/annual-wage-review-2026) and confirm the rise from the first full pay period starting on or after 1 July 2026 reached your pay.
- **Ask how the pool is split.** Find out whether your employer ranks roles for salary review, and whether yours is treated as critical.
- **Bring the official numbers.** Point to the [3.2% annual wage growth](https://www.abs.gov.au/media-centre/media-releases/annual-wage-growth-32-june-quarter-2026) as the market baseline and to the [3.6% national median, or 4% for the top-end sectors](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027), in Aon's study.
- **Test the outside market.** Voluntary turnover in financial services ran at [15.6%](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027) in the survey, the highest median of any industry, and Aon found [turnover data, talent availability and future workforce needs](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027) are playing a larger role in salary planning.
- **Watch the November release.** The September quarter [Wage Price Index](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/latest-release) is due on 18 November 2026.

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## People Also Asked

### Q: How much are Australian employers planning to raise salaries next year?

A: The median budgeted salary increase for 2027 is [3.6%](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027), up from a 3.5% median recorded in 2026, in a study of 500 Australian organisations.

### Q: Which industries have the highest salary budgets in Australia?

A: Technology, along with retail, eCommerce, wholesale and hospitality, sits at the [top of the range at 4%](https://cfotech.com.au/story/australia-s-salary-budgets-edge-up-to-3-6-in-2027), with most other industries close to the 3.6% national median.

### Q: How fast are wages in Australia actually growing?

A: The Wage Price Index rose [3.2% over the twelve months to the June quarter 2026](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/latest-release), with private sector wages up 3.1% and public sector wages up 3.4%.

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