Wages stagnating in NFP sector, survey finds

Posted on 26 Jun 2025

By Matthew Schulz, journalist, Institute of Community Directors Australia

Salary Wages shutterstock 1072789088

Most not-for-profit workers are falling behind on wages, according to the latest national sector salary survey.

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The 2025 Pro Bono Salary Survey found that lower-paid sector workers were unlikely to have received a pay rise last year, despite cost-of-living pressures.

The 160-page report, based on data from more than 2,000 organisations and covering 41 role types, paints a mixed picture.

While CEOs recorded a 5 per cent bump in pay, with packages now hovering around $200,000, administration officers received an average package of about $79,000.

And many roles experienced a decline in real wages.

Finance officers saw a 1 per cent dip in pay, while wages remained static (no change) for marketing, communications, fundraising, administration, case management, community development and volunteer-related roles.

At the same time, some subsectors have won rises, such as aged care, which received a 4.7 per cent bump in the year to March, as reported by the Australian Bureau of Statistics (ABS). Disability workers are hoping to follow suit later this year after the Fair Work Commission completes its review.

In the face of cost-of-living increases, stagnant and declining wages will put more pressure on household budgets for workers in the sector.

“Our own research shows that 48 per cent of people think they are underpaid, while only 3 per cent think they’re overpaid,” the report says.

“Alongside salary and benefits, flexibility is now a major negotiation point for both current and future employees."
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Respondents are seeking flexibility, the Salary Survey found.

More NFPs are drawing on AI

The salary survey also examined technology, showing that artificial intelligence (AI) uptake is accelerating across the sector.

The study found “nearly no task was left untouched”, supporting findings from Infoxchange’s earlier Digital Technology in the Not-for-profit Sector Report that showed NFPs were picking up the pace of their use of AI.

Respondents to the latest study said AI tasks included drafting social media posts, newsletters, grant applications and impact reports, and checking and summarising documents.

Flexibility more important than pay for new workers

The study found that 72 per cent of workers across the sector were working remotely at least once a week, although many managers were still grappling with hybrid work arrangements.

“Alongside salary and benefits, flexibility is now a major negotiation point for both current and future employees,” the report says.

Flexible work options including location and hours are now the leading factor for attracting new hires (46 per cent), ahead of organisational cause and reputation (37 per cent), higher pay and bonuses (9 per cent) and career development (3 per cent). However, the top reason for people leaving an organisation is “low remuneration” (40 per cent), ahead of high workload and burnout (29 per cent) and limited career progression (20 per cent).

Trends on boards show directors are working more

NFP boards continue to outperform the commercial sector on gender parity, with 48 per cent having gender balance or a female majority.

The study found NFP board members are spending more time on board-related matters, with the average time spent rising by almost 1½ hours per month since the last study.

Only a minority of organisations (16 per cent) report paying their directors to sit on boards, although more groups were prepared to pay for access to events or pay for other expenses.

The study is the 13th edition of the Salary Survey. The largest sector study of its type, it helps not-for-profit organisations to assess staff pay and benefits with its analysis of salary trends by role, sector, organisation size, location and operating budget.

Community Directors members can claim a 15 per cent discount on the report using the code SS15OC. Pricing is based on organisational size, with costs starting at $359.

More information

Download the Pro Bono Salary Survey

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