Australian wage growth rose at the fastest pace in almost eight years last quarter but the gap between wage growth and inflation is getting wider, according to data released by the Australian Bureau of Statistics (ABS).
Workers saw a 2.6% boost to their pay packets in the year to June but the increase is unlikely to do much to alleviate the soaring cost of living with inflation sitting at 6.1%.
On a quarterly basis, wages grew by 0.7 per cent.
It was the highest annual rate of wages growth since September 2014.
The private sector rose 0.7 % in the quarter and the public sector rose 0.6%.
Jobs in the Construction (1.4%) and Professional, scientific and technical services (0.7%) industries experienced the biggest pay boost.
Accommodation and food services recorded the lowest quarterly rate of growth (0.1%).
"Expanding demand for skilled jobs over the last 12 months has continued to build wage pressure across a broader range of industries and jobs, reflected in the increasing size of pay rises," said Michelle Marquardt, head of Prices Statistics at the ABS.
Some states are seeing stronger wage increases than others.
Western Australia recorded the highest quarterly rise of 0.8% while the ACT, Queensland and NSW experienced larger pay bumps than other states and territories.