The figures show that total pay growth over the year to June 2020 was -0.7%, marking the lowest rate of growth in more than 20 years. 

MI senior research fellow Sam Tsiaplias said the negative number was "highly unusual".

"It is the biggest negative number we have recorded (over 20 years)," he told Savings.com.au.

In June, 25.8% of the 1,200 respondents to the monthly Melbourne Institute Survey of Consumer Inflationary and Wage Expectations reported a drop in wages, while 28.3% said their pay had increased.

Need somewhere to store cash and earn interest? The table below features introductory savings accounts with some of the highest interest rates on the market.

Provider

400$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Special offer: Savings Accelerator (Kick Starter offer).
  • For a limited time, new ING customers can get a bonus 0.75% p.a on their savings rate balances of $150,000 up to $500,000 for the first 4 months. T&Cs apply.
  • If your balance is over $500,000 (but less than $5 million) you will earn the ongoing variable rate of 4.20%
Disclosure

Savings Accelerator

  • Special offer: Savings Accelerator (Kick Starter offer).
  • For a limited time, new ING customers can get a bonus 0.75% p.a on their savings rate balances of $150,000 up to $500,000 for the first 4 months. T&Cs apply.
  • If your balance is over $500,000 (but less than $5 million) you will earn the ongoing variable rate of 4.20%
Disclosure
4001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance
Disclosure

High Interest Savings Account (<$250k)

  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance
Disclosure
000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Sign up with code SWIPE20 to score $20 after 5 card purchases in your first 30 days. See terms on the app store
  • Deposit $500+ per month from an external source to earn the bonus interest.
  • Tiered rates apply to savings balances.
Disclosure

Save Account

  • Sign up with code SWIPE20 to score $20 after 5 card purchases in your first 30 days. See terms on the app store
  • Deposit $500+ per month from an external source to earn the bonus interest.
  • Tiered rates apply to savings balances.
Disclosure
010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Deposit at least $1,000+ each month from an external source
  • Make 5 or more eligible transactions. Grow your savings balance each month
Disclosure

Savings Maximiser

  • Deposit at least $1,000+ each month from an external source
  • Make 5 or more eligible transactions. Grow your savings balance each month
Disclosure
4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

Hi Saver

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    Bonus Saver

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      Online Saver

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        Up Saver Account

          00$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

          Qsaver

            01001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

            Bonus Saver Account

              01000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

              Bonus Saver

                3000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                Maxi Saver

                  01001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                  Bonus Saver Account

                    4001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                    Netsave Account

                      02001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                      Growth Saver

                        400$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                        Simple Saver

                          01000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                          Virgin Money Boost Saver

                            020000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                            HomeME Savings Account (<$100k)

                              02000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                              Online Savings - Premium Saver

                                0100$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                                mySaver

                                  Important Information and Comparison Rate Warning

                                  All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of July 6, 2025. View disclaimer.

                                  Important Information and Comparison Rate Warning

                                  While wage growth was slowing even before COVID-19 hit, Dr Tsiaplias said it was unusual for there to be negative wage growth.

                                  "Wage growth would have been weak even without COVID-19."

                                  With Australia entering its first recession since the 1990s, Dr Tsiaplias said there was little hope of wage growth trending upwards in the near future. 

                                  "The current economic downturn supports the case for even weaker wage growth prospects going forward, at least in the short to medium term," he said.

                                  Last month's figures from the Australian Bureau of Statistics (ABS) showed wages were sluggish in the March quarter before lockdown restrictions hit the economy. The quarterly wage price index grew by 2.1% over the year to the March quarter. 

                                  The ABS also revealed wages had fallen 8.2% in just one month from 14 March to 18 April. Employee jobs dropped by 7.5%, or around 975,000 positions in the same month. 

                                  That month was when full COVID-19 lockdown measures were announced.

                                  Despite Australia entering a recession, economists have been encouraged by signs the economic downturn hasn't been as severe as first thought. 

                                  RBA governor Philip Lowe said stimulus packages, coupled with the RBA's bond buying, meant the economy was tracking slightly better than the baseline scenario outlined in the latest statement on monetary policy. 

                                  "The shape and timing of that recovery depends not only on when restrictions are lifted, but also on the confidence that Australians have about their own health and their finances," Dr Lowe said.

                                  "With the national health outcomes better than earlier feared, it is possible that the economic downturn will not be as severe as earlier thought.

                                  "Much depends on how quickly confidence can be restored."

                                  However, Australia is not out of the woods yet. 

                                  Unemployment figures for May, due to be released next week, are expected to reach 8%, then 10% in the June quarter.

                                  Economists warn the prospect of billions of dollars in financial stimulus ending almost simultaneously in September could be "catastrophic", while the OECD this week urged the government to extend the JobKeeper wage subsidy beyond the September expiration.