After the GFC plenty of employees were told not to expect a bonus however today’s ABS wage price index data suggests the bonus payment could be back.
CommSec chief economist Craig James raised the question in a research note today.
Wages rose 0.6% in the September quarter to be up 2.6% for the year, the worst result in 15 years. Business Insider’s Greg Mckenna has the run down on the numbers here.
But when you factor in bonuses, wages rose 1.3% – the biggest increase in three years. What’s more, when bonuses are included annual wage growth was 2.8 per cent – an 18-month high.
“Those fortunate to receive a bonus secured a 1.3 per cent increase. Admittedly, bonuses tend to be paid after the end of the financial year, but the 1.3 per cent gain in the quarter was still the strongest result since 2011,” James said in the note.
“The solid lift in wages including bonuses lines up well with the lift in retail spending over the September quarter and improvement in consumer sentiment.”
Here’s the CommSec chart.