While professional engineers have achieved moderate remuneration growth this year, they continue to grow ahead of many other professions and keep in front of CPI.
The Professional Engineers Remuneration Survey Report has found that engineers experienced an average growth in salary of 3.3 per cent for the twelve months to June 2014, down slightly from growth of 3.8 per cent at the same time last year.
Across the year to June 2014, the Australian Bureau of Statistics Consumer Price Index (CPI) rose by 2.9 per cent and the Wage Price Index (WPI) rose by 2.6 per cent – placing engineering wage growth ahead of the economy and other workers.
Professionals Australia CEO Chris Walton said that the results showed the impact of the mining boom easing and the slowdown in the manufacturing sector.
The Professional Engineers survey involved over 1,700 engineers across more than 20 sectors of the economy, and is the largest salary survey of engineers of its type in Australia.
Mr Walton said that the report was a “vital” tool for professional engineers approaching or preparing for a salary review.
“This report provides members with detailed information on what they should be earning based on their experience, their sector and their industry. It is a comprehensive guide that looks at all aspects of what goes into a remuneration package and is simply a must-read, before you begin negotiating your next salary review,” said Mr Walton.
This year’s report reveals that engineers in oil and gas exploration achieved increases of 4.9 per cent – the highest of all engineer groups. However, interestingly there was a significant drop for engineers in the mining sector, who received increases of 3.2 per cent this year, down from 4.5 per cent from 2013.
There was an interesting trend that showed engineers in consulting actually achieving the lowest increases of all groups at 2 per cent. This can be attributed to the increasing movement of engineers from the public sector into private consulting.
Surprisingly there was very little difference in the salary increases between public sector engineers (3.4 per cent) and those working in the private sector (3.3 per cent) which traditionally provides much greater average salary increases, except at the depths of the Global Financial Crisis when private sector engineers were 1.2 percentage points worse off.
Increases in key industries included: Water – 3.6 per cent; Construction – 3.5 per cent; Energy – 3.5 per cent; Defence – 3.5 per cent; Mining – 3.2 per cent; and Communication – 3.0 per cent.
This survey also revealed that graduates typically start out earning $73,197, yet the most senior engineers report earning an average of $269,000.
Graduate salaries in the most common sectors were very close with those starting in the private sector earning the most at $59,500, state public servants earning $57,500 and local government engineers starting at $55,000.
Members wishing to examine the complete report, with comparative data and detailed analysis of all sectors and responsibility levels, can find out more here.