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News News Wages growth slows, fewer getting pay rises
Wages growth has slowed over the last year and fewer people are reporting pay increases, but optimism about a pay rise down the track has grown, figures show.

The Melbourne Institute's wages report found that annual growth in its total pay indicator slowed to 2.8 per cent in the 12 months to August 2007, from 4.8 per cent in the year to May.

Annual average growth in the basic hourly wage rate indicator remained at 3.7 per cent.

About 65 per cent of the 1200 people surveyed reported receiving a pay increase in August, down from 76 per cent in May.

Seven per cent reported a fall in their pay packets, while 27 per cent said their pay was unchanged, up eight percentage points.

The percentage of respondents reporting a change in their basic hourly wage rate in the 12 months to August fell to 66.7 per cent, down from 72.1 per cent in May, the figures show.

For those who reported a change, the average growth was 5.8 per cent, up 0.6 per cent from the previous survey.

The average growth in the basic hourly rate for all survey employees remained at 3.7 per cent compared to May.

Meanwhile, the proportion of respondents who said their wages had changed in the previous year to August dropped to 72.7 per cent, down from 81.3 per cent in the year to May.

More full-time than part-time employees reported a change in their basic hourly wage rates in the year to August.

The average change for total pay in the full-time group was significantly positive while that of the part-time group was negative, the figures showed.

Workers on safety net/award and on enterprise agreements were more likely to report changes in their basic hourly wage rates and total pay compared to those on individual contracts.

Those on enterprise agreements received larger average increases in both their wage rate, up four per cent, and their total pay, up 4.3 per cent.

Managers and professionals were the most likely occupational group to report changes in their pay, but para-professionals and tradespeople reported the highest growth in their basic hourly rate.

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